Sell in May and go to the beach? Not so fast says Matt Krantz, market reporter at USA TODAY. Krantz found 14 stocks that have beaten the market every summer for the past five years. What do they all have in common?
"A lot of investors think summer is a great time for energy," says Krantz in the video above. "But the action is in consumer-focused areas."
Consumer stocks that have consistently outperformed in the summer include eBay (EBAY), Keurig Green Mountain (GMCR), Tiffany (TIF), Apple (AAPL), L Brands (LB), Costco (COST) and Estee Lauder (EL). Krantz's list also includes fertilizer maker CF Industries (CF), telecommunications equipment provider Motorola Solutions (MSI) and oil and gas exploration company Anadarko Petroleum (APC).
"These stocks are on fire," notes Krantz. "Investors are anticipating a good summer for earnings and they're getting in ahead of time."
According to Krantz's analysis, his 14 summer stock winners have gained 13.4% on average in the summer months versus 7.3% for the S&P 500. Will the streak continue?
"The odds are against it," warns Krantz. "The past is a great indicator of what could happen but it doesn't always come true. Be careful."
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