Despite the old adage “sell in May and go away”, investing in the summer has actually proven to be a better time to invest than some might think. However, certain businesses naturally do better than others and most predictably, these tend to be the more summer activity and necessity-orientated ones.
Industries dealing with items such as solar panels, DIY and camping are amongst those that see the highest summer surges, according to finance experts at Invezz.
Explaining how the hot weather may impact stock prices, experts at Invezz said: “The hot weather can have a surprisingly big impact on consumer behaviour and therefore also investor decisions.
“Investors would be wise to keep an eye out for ‘summer stocks’ opportunities, which are in the perfect position to thrive during the consumer and tourism boom during the hot months.
“The sorts of seasonal companies and industries to monitor include solar energy, outdoor entertainment and recreation stocks, food and drink, as well as gardening and home improvement retailers.
“These stocks are often a great short-term investment opportunity but are also capable of generating gains on a long-term basis.
“However, past performance is not necessarily indicative of future performance and it must also be taken into account that the five-year sample includes anomalies such as COVID and historically high levels of money printing, which are unique to the usual environment.”
To find out the best businesses to invest in right now, Invezz used six years of historical data to predict the biggest stocks for summer, especially those that have been seeing a bigger value boost during the warmer months.
The six top summer-related stocks with the biggest spring to summer gains
PoolCorp, the wholesale distributor of swimming pools, ranks as the third best business according to Invezz.
Data shows the company to have seen average gains of 11.24 percent over the last six years during these months.
Energy drink manufacturer Monster Beverage comes in fourth, according to Invezz, with average gains during spring to summer showing to be 9.15 percent over the past six years.
Winnebago Industries, the American outdoor lifestyle manufacturer, ranks fifth on the list, with average gains over the past six years coming in at 7.89 percent.
According Invezz, Home Depot, the multinational home improvement company, is currently the sixth-best business to invest in over the summer. Over the past six years, it’s seen average gains of 6.93 percent.