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3 Top Winter Stocks That’ll Heat up Your Portfolio

Falling temperatures present investors with opportunity every year

Source: Shutterstock

Winter is back, and while it may not be everyone favorite time of year, it does offer opportunity that cannot be ignored. In fact, as the weather outside gets frightful, we can turn the heat on with stocks that move higher on seasonal patterns each year. For example, we often see higher demand for hot tea and coffee this time of year.

Home Depot (NYSE:HD) and Toro (NYSE:TTC) tend to push higher thanks to snow-removal equipment sales. VF Corporation (NYSE:VFC) explodes thanks to sales of its North Face coats. The cold winter months of the year also lead to opportunity for ski resorts, such as Vail Resorts (NYSE:MTN).

In short, winter may not be the “most wonderful time of the year” for many of us as the temps turn south, but it does give us an opportunity to turn up the heat on our portfolios. Here are three of our favorite seasonal stocks to help ride out the season.

Home Depot (HD)

Source: Cassiohabib / Shutterstock.com

In each of the last four winters, Home Depot has exploded higher. In January 2015, for example, the stock ran from a low of $90.60 to a high of $106.40. In January 2016, HD stock ran from $118.70 to $126. In January 2017, it ran from $125.69 to $150.

In January 2018, it ran from a low of $180.57 to a high of $209. All thanks in part to the sale of snow removal equipment, generators, and even rock salt for driveways. Since the start of 2019, HD stock ran from $166 to $220.

As InvestorPlace contributor Josh Enomoto points out, “On average, HD stock jumps noticeably higher in November and December as compared to the rest of the year. Plus, February’s haul of 3.4% is notably better than the annual average return of 2.5%.”

Columbia Sportswear (COLM)

Source: Ekaterina_Minaeva / Shutterstock.com

When it comes to winter clothing stocks, Columbia Sportswear (NASDAQ:COLM) is one of the top stocks to keep an eye on. Coming off a third-quarter report that again exceeded expectations with raised outlook, the company is entering peak season.

“As we enter our peak selling season, I’m confident that our powerful brand portfolio, globally diversified business model and the dedication and focus of our talented global team position us to deliver another year of record sales and profit,” said CEO Tim Boyle.

Like Home Depot, COLM also has a powerful history of winter month returns. In January 2015, for example, the stock ran from a low of $41.16 to a high of $59.84. In January 2016, COLM stock ran from $47.19 to $59.44. In January 2017, it ran from $53.45 to $69. In January 2018, it ran from a low of $70.30 to nearly $92.  Since the start of 2019, COLM stock ran from $81.03 to $92.50.

Vail Resorts (MTN)

Source: Rosemary Woller / Shutterstock.com

Last but not least, MTN stock thrives in most winters. In fact, U.S. News & World Report once noted MTN is a “winter tourist gem” because of its three segments: mountain, lodging and real estate. These “provide a complete package for winter destination vacations and snow sports.”

MTN has a powerful history of winter month returns as well. In January 2015, for example, the stock ran from a low of $79.82 to a high of $100. In January 2016, MTN stock ran from $113 to $150. In January 2017, it ran from $149 to $2179. In January 2018, it ran from a low of $195.60 to nearly $284. Since the start of 2019, MTN stock ran from $201 to $243.

As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/12/three-top-winter-stocks-thatll-heat-up-your-portfolio/.

©2019 InvestorPlace Media, LLC