Home > Top Performing Stocks in December (Seasonality)

Top Performing Stocks in December (Seasonality)

December is a good month for stocks overall, and these stocks tend to do even better than the market, rising at least 80% of the time and producing as much as 9.5% gains during the month. Stocks mentioned: AET, CB, CTB, ESRX, EXC, GNTX, MTG, ORI, PEG, SO, SYK, UL, UNH, UTX and WEN.

Seasonality is the study of how assets perform at certain times of the year. The stocks below have shown a strong tendency to rise in December, historically. That doesn’t mean they will rally this December, though. Seasonality is best used in conjunction with other forms of analysis and specific trading strategies, such as the ones discussed in the Stock Market Swing Trading Video Course.

Before getting into the best historical December stock performers, stocks as a whole, as gauged by S&P 500 index, tend to do well in December. Over the last 20 years, the index has moved higher 75% of the time (number on top of December column), and moved up by an average of 1.5% (number at bottom of December column).

spx seasonality december

StockCharts.com

Strong Seasonality Stocks for December

The statistics below are based on the historic monthly opening and closing prices. Therefore, gains or losses within the month may be larger than those disclosed below. For example, a statistic may say the biggest rally on a monthly basis was 15%, but during the month the stock could have been up 20%, but dropped to only finish the month up 15% (intra-month losses could also be bigger). This is why it is also recommended traders combine these statistics with other strategies, which help control risk and lock in profits.

Buying at the open and close of the month is also somewhat arbitrary. There are more precise times to take trades. Focus on seasonal opportunities that align with strategies you are already using.

This is the raw data. How you interpret it, and what you opt to do with it, is up to you.

All stocks do at least 500K in average daily volume.  All stocks with an average or median gains of less than 3% have been excluded.

93% Rally Rate

Unilever PLC (UL)

Price has rallied 25 out of 27 years, or 93%.

Average December gain, for all years, is 4.16%.

In the rising months (25) the average gain has been: 4.66%.

In declining months (2) the average loss is -2.13%.

Biggest gain is 13.98%, and biggest drop is -3.94%.



85% Rally Rate

The Southern Company (SO)

Price has rallied 23 out of 27 years, or 85%.

Average December gain, for all years, is 3.54%.

In the rising months (23) the average gain has been: 4.47%.

In declining months (4) the average loss is -1.8%.

Biggest gain is 11.39%, and biggest drop is -3.52%.




Gentex Corporation (GNTX)

Price has rallied 23 out of 27 years, or 85%.

Average December gain, for all years, is 8%.

In the rising months (23) the average gain has been: 10.93%.

In declining months (4) the average loss is -8.81%.

Biggest gain is 48.52%, and biggest drop is -14.56%.




81% Rally Rate

United Technologies (UTX)

Price has rallied 22 out of 27 years, or 81%.

Average December gain, for all years, is 3.99%.

In the rising months (22) the average gain has been: 5.67%.

In declining months (5) the average loss is -3.39%.

Biggest gain is 15.07%, and biggest drop is -5.54%.




UnitedHealth Group (UNH)

Price has rallied 22 out of 27 years, or 81%.

Average December gain, for all years, is 4.81%.

In the rising months (22) the average gain has been: 6.63%.

In declining months (5) the average loss is -3.22%.

Biggest gain is 26.63%, and biggest drop is -5.29%.




Stryker Corporation (SYK)

Price has rallied 22 out of 27 years, or 81%.

Average December gain, for all years, is 6.16%.

In the rising months (22) the average gain has been: 8.26%.

In declining months (5) the average loss is -3.06%.

Biggest gain is 34.36%, and biggest drop is -5.17%.




Public Service Enterprise Group (PEG)

Price has rallied 22 out of 27 years, or 81%.

Average December gain, for all years, is 4.33%.

In the rising months (22) the average gain has been: 5.72%.

In declining months (5) the average loss is -1.78%.

Biggest gain is 19.17%, and biggest drop is -4.58%.




Old Republic International (ORI)

Price has rallied 22 out of 27 years, or 81%.

Average December gain, for all years, is 4.9%.

In the rising months (22) the average gain has been: 6.64%.

In declining months (5) the average loss is -2.77%.

Biggest gain is 23.51%, and biggest drop is -5.86%.




MGIC Investment Corporation (MTG)

Price has rallied 21 out of 26 years, or 81%.

Average December gain, for all years, is 9.55%.

In the rising months (21) the average gain has been: 13.51%.

In declining months (5) the average loss is -7.09%.

Biggest gain is 52%, and biggest drop is -11.51%.




Exelon Corporation (EXC)

Price has rallied 22 out of 27 years, or 81%.

Average December gain, for all years, is 3.31%.

In the rising months (22) the average gain has been: 4.35%.

In declining months (5) the average loss is -1.22%.

Biggest gain is 9.16%, and biggest drop is -2.12%.




Cooper Tire and Rubber Company (CTB)

Price has rallied 22 out of 27 years, or 81%.

Average December gain, for all years, is 5.98%.

In the rising months (22) the average gain has been: 8.3%.

In declining months (5) the average loss is -4.25%.

Biggest gain is 30.36%, and biggest drop is -9.64%.




The Chubb Corporation (CB)

Price has rallied 22 out of 27 years, or 81%.

Average December gain, for all years, is 4.04%.

In the rising months (22) the average gain has been: 5.89%.

In declining months (5) the average loss is -4.09%.

Biggest gain is 17.56%, and biggest drop is -13.44%.




Aetna Inc. (AET)

Price has rallied 22 out of 27 years, or 81%.

Average December gain, for all years, is 5.05%.

In the rising months (22) the average gain has been: 7.03%.

In declining months (5) the average loss is -3.68%.

Biggest gain is 30.6%, and biggest drop is -5.9%.



80% Win Rate

The Wendy’s Company (WEN)

Price has rallied 20 out of 25 years, or 80%.

Average December gain, for all years, is 4.18%.

In the rising months (20) the average gain has been: 6.07%.

In declining months (5) the average loss is -3.41%.

Biggest gain is 22.87%, and biggest drop is -5.54%.




Express Scripts Holding Company (ESRX)

Price has rallied 22 out of 25 years, or 80%.

Average December gain, for all years, is 7.37%.

In the rising months (20 the average gain has been: 10.29%.

In declining months (5) the average loss is -4.34%.

Biggest gain is 36.54%, and biggest drop is -9.34%.



Final Word on the Strong December Seasonality Stocks

This is the raw data. What you do with it is up to you. All traders are encouraged to do their own research and apply their own strategies if utilizing these statistics.

Each stock has a different risk profile. While the ‘average gain’ statistic is a key metric, it doesn’t tell the whole story. Making 7% may seem attractive but when looking at the volatility it may be more than you are willing to handle. Therefore, look at the all the data when deciding what to trade. Also, apply other technical and fundamental metrics to help zero-in on exact entry and exit points. Seasonality is not covered in my stock trading course, because it is a not a requirement for successful trading. That said, it is an additional tool you can use.

Losing trades WILL happen. Don’t risk more than 1% of your trading account on a trade (risk = difference between entry price and stop loss price, multiplied by the number of shares). There is always a risk in trading, and you can lose much more than you expect (even when you think you are only risking 1%).

By Cory Mitchell, CMT

Disclaimer: This article should not be viewed as investment advice, and is not a recommendation for you to buy or sell. Past performance is not necessarily indicative of future performance.

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