January is generally one of the weakest months of the year for the stock market, but the following stocks have excelled in January over the last 15 years or more. Each stock on the list has rallied at least 4% on average and has moved higher in the month at least 75% of the time.Best Performing Stocks in January Over the Last 20 Years or More
For comparison, the S&P 500 has increased an average of 0.1% in January and moved higher 50% of the time over the last 20 years (10 out of 20 years). That is the lowest “move higher” percentage of any month of the year. This is the study of seasonality: how assets perform at different times of the year.These are historical averages and do not indicate what a stock will do this year.Many of the large losses in these stocks occurred when the S&P 500 also experienced a large drop or volatility late in the year, such as 2001, 2002, 2015, and 2018. That said, individual stocks can experience large gains or losses in any given month and returns are not necessarily correlated to what the major indices are doing.
Best Stocks for January 2024
The following stocks have performed the best in December over the last 15 years or more. Each stock has averaged returns of more than 4.5%. See all the details, including the win rate, biggest wins, biggest losses, biggest drawdowns while in a trade, and trade dates.This is interesting historical data. These are not trade recommendations.
Wynn Resorts (WYNN) +5.44%
WYNN operates hotels and casinos.Over the last 21 years, the stock has risen between January 1 (open) and February 01 (close) in 18 of those years (86%).
Of the stocks on the list, WYNN increases the most often in January at 86%. The stock is not without risks. It can be volatile, as shown by the max drawdown and biggest loss figures.
Cardinal Health Inc. (CAH) +3.9%
CAH distributes medical supplies and pharmaceuticals.Over the last 32 years, the stock has risen between January 8 (open) and February 10 (close) in 27 of those years (84%). One year was flat and that is counted as a non-win. If that is counted as a win the rate increases to 88%.
CAH is slightly below the 4% average profit I set for this list, but it has a solid and long-term track record of performance in January so it was worth including.
Texas Instruments (TXN) +6.22%
TXN makes semiconductors.Over the last 32 years, the stock has risen between January 1 (open) and February 14 (close) in 24 of those years (75%).
TXN has an overall solid performance in January with one of the higher average profits on the list (not the highest).
DR Horton (DHI) +5.55%
DHI is a homebuilder.Over the last 31 years, the stock has risen between January 1 (open) and February 14 (close) in 24 of those years (77%).
DHI has decent performance in all the categories. It increases quite often in January and has a solid average profit, but it has had some big drops in January as well, including one recently in 2022.
Netflix (NFLX) +16.11%
NFLX operates a digital movie streaming service.Over the last 21 years, the stock has risen between January 5 (open) and February 7 (close) in 17 of those years (81%).
NFLX tends to rise in January and has a monster average return of more than 16%. The stock can move a lot, even in a month, as shown by the biggest gains and losses during the trade period.
Trading Stocks That Are Strong in January
Seasonality analysis, while valuable, relies on historical data. This scan focused on stocks that historically performed well early in the year. However, it’s unknown whether these stocks will continue to perform well in January going forward.Instead of trading based on seasonality alone, evaluate the stock’s trend, trends in major indices (such as the S&P 500), and the company’s financial health.The statistics provided give a summary of what happened over many trades. They do not reflect the difficulty of attaining those average returns via holding through the many ups and downs in price. The largest drawdown underscores the losses incurred to achieve the average profit.Data is provided by third parties, such as Seasonal Guru, and is believed to be accurate but may not be in all cases. Due your own due diligence before risking any capital.Determine how you will utilize seasonal opportunities, if you opt to trade them, while also managing risk. Risk is controlled with stop loss orders (which would alter the results witnessed) and position sizing.More By This Author:Tailor Strategies to Emotions and Skill Level for Maximized Earnings and Rapid Improvement
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