While we don’t ever suggest that investors should base their trading solely on the calendar, there is evidence that the market and many stocks do indeed follow seasonal patterns. This makes our S&P 500 Stock Seasonality report a useful addition to every investor’s toolbox. Using the last ten years worth of price data, our Stock Seasonality report looks at the average returns for the S&P 500, its eleven sectors, and its 500 individual stocks. In the report, we highlight the five stocks in each sector that have historically been the best and worst performers over the next two weeks. For each stock, we also include information such as average returns, the percent of time each stock or sector is positive/outperforms the S&P 500, and its historical performance over the next two weeks for each of the last ten years. The Stock Seasonality report is published on a weekly basis on Mondays, and it is available to all Bespoke Premium and Bespoke Institutional subscribers.
One stock that we wanted to highlight this week is Electronic Arts (EA). With a median gain of 7.77% and positive returns in eight of the last ten years, EA is a gamer’s paradise in the upcoming two-week period. So, what typically drives EA to such strong gains during this period? Earnings. EA typically reports earnings right towards the end of January, so its Q4 report is almost always covered in the span of the next two weeks. This year, EA report on 1/30 after the close, and given the stock’s track record, expectations will be high. If the company misses expectations, you can expect to see a reaction like the ones we saw during this period back in 2008 of 2016.
What’s even more amazing about EA’s performance in the upcoming two-week period is that it has historically been only the third-best performing stock in the S&P 500 during this period!
For active traders, our Stock Seasonality report is an excellent tool to help keep track of the best and worst times of year for the overall market, sectors, and individual stocks. To see the report and which two stocks have performed even better than EA in the upcoming two-week period, sign up for a monthly Bespoke Premium membership now!