Best Seasonal Stocks to Buy For January
As is often said, timing is everything in life. This adage also applies to business and investing. Add the right stock to your portfolio at the perfect time and you’ll reap the financial rewards. The challenge lies in timing your entry into new positions to minimize risk and maximize upside.
Here is a quick look at four seasonal stocks to buy in January that have historically outperformed the overarching market to start the new year.
AngloGold Ashanti (NYSE: AU)
It is no secret that geopolitics has become tumultuous and unpredictable throughout 2022 and the start of 2023. Past performance is the best indicator of future success. Part of the appeal of AU is its relative stability across posterity. Factor in the decline of cryptocurrency and the desire for stable investments increases all the more.
AU mines precious metals including gold and copper. The company operates in the Americas, Australia, and Africa. Take a look at AU’s historical performance in past Januarys and you’ll find this global gold mining business being a legitimate January superstar.
Over the past 10 years, AU has an 80% success rate of generating a positive return in the month of January, with the largest recorded January return at 45%, achieved back in 2015.
As of YTD 2023, the company has already generated a decent return of 4.2%. AU is looking particularly interesting as a leveraged play on gold prices, which has seen its fair share of price resurgence of late, a consequence of the Dollar’s weakness.
With inflation expected to remain high in 2023, might it be the time for gold to finally show its glory? If so, then gold miners like AU will likely have a bumper year, both operationally and price performance.
Netflix (NASDAQ: NFLX)
NFLX’s market value has been chopped in half since reaching its peak of $612 in October of 2021. Currently trading at $307, NFLX is poised for a breakout in January. The video streaming services provider has altered its business model in recent months in an attempt to recoup market share and boost profit margins.
Though the video streaming competition has ramped up in recent years, NFLX still reigns supreme as one of the best seasonal stocks to buy in January.
Let’s shift our attention to NFLX’s immediate future. The stock started the year at $294. NFLX has since climbed to $310. This upward new year trend is characteristic of NFLX’s historical performance in the context of the best seasonal stocks to buy in January. Rewind to 2018 and NFLX soared from its January starting point of $205 to $267 in a month.
A much-anticipated ad-based membership tier was introduced recently, priced at $6.99/mth in the US. While it remains early days to assess how much its new ad business will add to its top-line, projected to be around $32bn in 2023, but it is something that could be lucrative over time.
Its business environment has become more challenging, however. Hence this might not be a stock that could see a steady rise in its share price through 2023. Traders might wish to take a “punt” just in January 2023 for its price momentum to continue.
Beyond that, it is anybody’s guess.
Global Partners (NYSE: GLP)
GLP, a petroleum and renewable fuels business, owns and operates terminal networks throughout the Northeastern region of the United States. Put simply, GLP supplies the gasoline we all need to engage in commerce. The company also distributes residual oil, distillates, and renewable sources of energy to commercial businesses.
All in all, GLP has nearly 2,000 retail locations throughout the region. The company is gradually expanding its retail operations throughout the mid-Atlantic region of the United States.
GLP has historically outperformed the broader market in the first month of the year, with a 70% track record of generating positive returns in January over the past 10-years.
However, the company started 2023 with a decline of c.7% on a YTD basis as a result of price volatility seen in the oil and gas market.
At the current price level, speculators might wish to take a quick punt based on risk: reward, that its price performance will recover swiftly for the rest of January 2023.
Joyy (NASDAQ: YY)
YY is a worldwide social media specialist best thought of as a more modern and utilitarian version of America Online’s (AOL) AIM instant messaging service popularized in the late 90s and early aughts. The company’s value proposition rests in the empowerment of users to instantaneously interact with one another through web-based live media. Examples of YY’s value offerings include:
- Hago interactive online social features for gaming and live streaming
- Like video content creation
- Bigo Live live streams for sharing content on the web
Sort through the lists of the best seasonal stocks to buy in January and you’ll find YY is one of the best positioned for good reason. With a 90% hit rate, this is one counter that does extremely well in the month of January.
YY started the new year priced at just under $33. The stock is trading at $39.27 as of this writing, achieving a 6-months high. With sentiments on China-related stocks improving, it will not be a major surprise to see its share price rebounding strongly and re-take its 52-week high level of $55/share in the coming months.
Conclusion
These are the 4 best seasonal stocks to buy in January 2023, stocks that have a good track record of outperforming the market in the month of January, generating strong positive returns in the process.
While a handful of these stocks are exhibiting strong momentum that could see its outperformance and positive price returns continue beyond January 2023, do research on the suitability of trading these counters based on your own risk profile.
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