This week may have been topsy-turvy for the U.S. stock market, but it followed the best five-week stretch for the broader S&P 500 since 2020, per Dow Jones Market Data.
Keeping in mind the magnitude of the rally, it’s evident that there has been some profit-taking this week, leading to a pullback. However, historically, whenever the S&P 500 has registered five weeks of gains, the index has invariably moved northward in the next six-month period.
December, anyhow, has been a favorable month for the stock market, with solid gains widely expected during the latter half of the month. This is because of the Santa Claus rally when the stock market traditionally scales northward in the last five trading sessions of the month.
Moreover, December has always seen solid gains following strong returns in November. Ryan Detrick, Carson Group’s chief market strategist, had said that the S&P 500, on average, jumped 1.8% monthly after growth of 8% or more in the previous month since 1950. The S&P 500, by the way, had already jumped 8.9% in November.
The Dow Jones Market Data further added that if the S&P 500 scales up more than 15% till November, then the index is set to finish December in the positive territory 75% of the time.
Having said that, seasonal trends may not necessarily determine the future stock price movement. But much of the recent strength in the stock market can be attributed to the Federal Reserve’s initiative to curtail its aggressive interest rate hike program amid signs of cooling inflation and a resilient U.S. economy.
Increasing signals from other parts of the world, including the European Central Bank and the Bank of England, that they are done with hiking interest rates also buoyed investors’ sentiment in recent times.
Thus, with things looking up for the stock market shortly amid a Fed rate hike pause and encouraging seasonal trends, investing in sound growth stocks like Beacon Roofing Supply (BECN - Free Report) , TopBuild (BLD - Free Report) , Journey Medical (DERM - Free Report) , and Shift4 Payments (FOUR - Free Report) seems prudent.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
Beacon Roofing Supply is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products. Beacon Roofing Supply currently has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 9.8% over the past 60 days. BECN’s expected earnings growth rate for the current year is 8.2%.
TopBuild is an installer and distributor of insulation and other building products to the U.S. construction industry. TopBuild currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 5.2% over the past 60 days. BLD’s expected earnings growth rate for the current year is 14%.
Journey Medical is a commercial-stage pharmaceutical company. Journey Medical currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 87.5% over the past 60 days. DERM’s expected earnings growth rate for the current year is 90.5%.
Shift4 Payments is a provider of integrated payment processing and technology solutions. Shift4 Payments currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.7% over the past 60 days. FOUR’s expected earnings growth rate for the current year is 110.1%.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
This week may have been topsy-turvy for the U.S. stock market, but it followed the best five-week stretch for the broader S&P 500 since 2020, per Dow Jones Market Data.
Keeping in mind the magnitude of the rally, it’s evident that there has been some profit-taking this week, leading to a pullback. However, historically, whenever the S&P 500 has registered five weeks of gains, the index has invariably moved northward in the next six-month period.
December, anyhow, has been a favorable month for the stock market, with solid gains widely expected during the latter half of the month. This is because of the Santa Claus rally when the stock market traditionally scales northward in the last five trading sessions of the month.
Moreover, December has always seen solid gains following strong returns in November. Ryan Detrick, Carson Group’s chief market strategist, had said that the S&P 500, on average, jumped 1.8% monthly after growth of 8% or more in the previous month since 1950. The S&P 500, by the way, had already jumped 8.9% in November.
The Dow Jones Market Data further added that if the S&P 500 scales up more than 15% till November, then the index is set to finish December in the positive territory 75% of the time.
Having said that, seasonal trends may not necessarily determine the future stock price movement. But much of the recent strength in the stock market can be attributed to the Federal Reserve’s initiative to curtail its aggressive interest rate hike program amid signs of cooling inflation and a resilient U.S. economy.
Increasing signals from other parts of the world, including the European Central Bank and the Bank of England, that they are done with hiking interest rates also buoyed investors’ sentiment in recent times.
Thus, with things looking up for the stock market shortly amid a Fed rate hike pause and encouraging seasonal trends, investing in sound growth stocks like Beacon Roofing Supply (BECN - Free Report) , TopBuild (BLD - Free Report) , Journey Medical (DERM - Free Report) , and Shift4 Payments (FOUR - Free Report) seems prudent.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
Beacon Roofing Supply is the largest publicly traded distributor of residential and non-residential roofing materials and complementary building products. Beacon Roofing Supply currently has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 9.8% over the past 60 days. BECN’s expected earnings growth rate for the current year is 8.2%.
TopBuild is an installer and distributor of insulation and other building products to the U.S. construction industry. TopBuild currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 5.2% over the past 60 days. BLD’s expected earnings growth rate for the current year is 14%.
Journey Medical is a commercial-stage pharmaceutical company. Journey Medical currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 87.5% over the past 60 days. DERM’s expected earnings growth rate for the current year is 90.5%.
Shift4 Payments is a provider of integrated payment processing and technology solutions. Shift4 Payments currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.7% over the past 60 days. FOUR’s expected earnings growth rate for the current year is 110.1%.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Get the latest research report on BECN - FREE
Get the latest research report on BLD - FREE
Get the latest research report on DERM - FREE
Get the latest research report on FOUR - FREE