Since 1971 when Memorial Day was officially designated as the last Monday of May, the S&P 500 has experienced an average gain of 0.53% during the 4-day Memorial Day week. On a median basis, the gains are slightly stronger at +0.59%. And in years when the S&P 500 is up 10%+ year-to-date heading into Memorial Day week (as it is this year), the median gain has been 0.63% during the week. In the chart below, we show the S&P’s change during Memorial Day week each year since 1971. Blue bars are years in which the S&P was up 10%+ YTD through Memorial Day.
Now that “summer” has unofficially begun, we used our Stock Seasonality tool to find the S&P 500 stocks that perform the “hottest” during the summer months. Below are the ten stocks with the strongest median gains from Memorial Day through Labor Day over the last 10 years.
Somewhat surprisingly, Apple (AAPL) ranks first with a median gain of 13% over the last ten years with gains 80% of the time. AAPL has gained at least 7% in each of the last 3 summers, and the stock’s only decline of any significance came in 2015 when it dropped 14.5%. Cooper (COO) ranks second with a median gain of 12.1%, followed by Alexion Pharma (ALXN), NVIDIA (NVDA), Align Tech (ALGN), and ABIOMED (ABMD). Amazon.com (AMZN) also makes the cut with a median gain of 8.9% during the summer, ranking it 10th in the S&P 500. For AMZN, its median gain isn’t quite as strong as stocks like Apple or NVIDIA, but it hasn’t fallen once from Memorial Day to Labor Day over the last 10 years! Start a 2-week free trial to Bespoke Premium to access our Stock Seasonality tool and a wide array of investment research.