A December Seasonal Powerhouse Is Exploding Higher

We prepared a list of the 20 best stocks to own in December and sent it to our EarningsBeats.com members one week ago. The TOP-RATED stock on our list was Western Digital (WDC), which has advanced in 70% of Decembers this century and has produced an average return of 7.4% in the month of December!

It’s at it again.

Alls you need to do is take one look at this chart to realize that WDC is in its seasonal sweet spot:

Do you see how WDC just took off on November 1st? Listen to this amazing stat about WDC. Its average return from November through April totals +30.3%. Its average return from May through October totals -0.2%. WDC is simply doing what the seasonality chart tells us that it does:

Every bar from November through April is higher than every bar from May through October. The average monthly returns are noted at the bottom of each bar. When you look at this, the big advance that began on November 1st makes sense.

On Monday, December 7, I will be featuring another one of our December seasonal favorites in our FREE EB Digest newsletter. After gapping higher with blowout earnings in November, this stock has fallen back to test its rising 20 day EMA and, I believe, is poised to mount another December rally. The stock’s best two months are December and January, where it’s averaged gaining 7.0% per year for the past two decades. I’ve cropped the name, but here’s the seasonality chart:

At 75%, this stock has a clear propensity to finish December higher. January is strong as well. Currently, however, this stock is flat through the first week of December and hovering at its 20 day EMA. If you’d like to see which stock it is, CLICK HERE to enter your name and email address and I’ll have it mailed out before the market open Monday morning. There is no credit card required and you may unsubscribe at any time.

Happy trading!

Tom Bowley, Chief Market Strategist, EarningsBeats.com