December, historically known as a bullish month for stock markets, has witnessed notable positive returns since 1950, sharing the top spot with November and April. Although it used to hold the best monthly returns record, a significant drop in December 2018 shifted it to the third position in the annual ranking, with the S&P 500 experiencing a -9.18% decline. On average, December boasts a return of +1.51%, with positive performance observed nearly 75% of the time.
Despite December’s overall positive trend for the S&P 500, specific stocks have consistently outperformed the market over the past five years. Using the InvestingPro tool, we’ll explore five noteworthy performers in this article.
1. Skyworks Solutions (NASDAQ: SWKS):
– Semiconductor chips used across various sectors.
– Previous results in November showed improved revenue and earnings per share (EPS) forecasts.
– Shares rose an average of +8.3% during December over the last five years.
– InvestingPro models suggest a potential of $114.36.
2. Eli Lilly and Company (NYSE: LLY):
– Established in 1876, headquartered in Indianapolis, Indiana.
– Dividend yield: +0.77%.
– Expected to present accounts on February 6, with a projected +5.84% increase in EPS and +10.97% in actual revenue.
– Shares are up on average +7.2% in December over the last 5 years.
– Market potential estimated at $619.14.
3. Baker Hughes (NASDAQ: BKR):
– One of the world’s largest oilfield services companies.
– Dividend yield: +2.37%.
– Expected to report +5.04% actual revenue growth on January 18.
– Raised full-year revenue forecast due to strong demand for liquefied natural gas equipment.
– Shares up on average +7.2% in December over the last 5 years.
– Market potential aligns with a positive outlook.
4. Las Vegas Sands (NYSE: LVS):
– Casino and resort company based in Las Vegas, Nevada.
– Dividend yield: +1.71%.
– Represents integrated resorts featuring lodging, gaming, entertainment, and shopping.
– Shares performance aligns with an average +7.2% increase in December over the last 5 years.
– Market potential, buoyed by 29 ratings (21 buy, 6 hold, 2 sell), suggests positive growth.
As investors navigate the unique dynamics of December trading, these top-performing stocks present compelling opportunities amidst historical market trends. Analysts and market enthusiasts will closely monitor the performances of these companies, considering their potential impact on overall market sentiment.
