In this article, we discuss 5 best seasonal stocks to buy now. If you want to read about some more seasonal stocks to buy now, go directly to 11 Best Seasonal Stocks to Buy Now.
5. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 50
The Mosaic Company (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. It is one of the top seasonal stocks to invest in. The firm is slowly building a dividend profile. Over the past ten years, it has consistently paid a dividend to shareholders. These payments have also registered growth in the past three years. On August 18, the firm declared a quarterly dividend of $0.15 per share, in line with previous. The forward yield was 1.11%.
On August 3, Citi analyst PJ Juvekar upgraded The Mosaic Company (NYSE:MOS) stock to Buy from Neutral with a price target of $61, up from $57, highlighting that agriculture stocks outperform in a slowing economic environment.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Soroban Capital Partners is a leading shareholder in The Mosaic Company (NYSE:MOS), with 6.7 million shares worth more than $317.7 million.
In its Q1 2022 investor letter, Carillon Towers Advisers, an asset management firm, highlighted a few stocks and The Mosaic Company (NYSE:MOS) was one of them. Here is what the fund said:
“Despite a rally near the end of the quarter, major equity indexes closed lower as fear of U.S. Federal Reserve (FED) balance sheet tapering, interest rate hikes, and war in the Ukraine sent the bulls into retreat. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Potash and phosphate fertilizer producer The Mosaic Company (NYSE:MOS) performed strongly as war exacerbated already short supplies of key oil and gas exploration.”
4. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 51
The Boeing Company (NYSE:BA) designs, develops, manufactures, services, and supports commercial jetliners, military aircraft, satellites, missile defense, and human space flight and launch systems. The firm is among the best seasonal stocks to invest in. The company has twin seasonal factors working for it. A rise in geopolitical tensions upsets travel demand but also results in increased interest in the defense products of the firm. The firm also benefits from aircraft orders ahead of the holiday season.
On September 8, Morgan Stanley analyst Kristine Liwag maintained an Overweight rating on The Boeing Company (NYSE:BA) stock and raised the price target to $233 from $215, highlighting the bullish outlook for new aircraft demands.
At the end of the second quarter of 2022, 51 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in The Boeing Company (NYSE:BA), compared to 52 in the preceding quarter worth $1.36 billion.
In its Q2 2022 investor letter, Meridian Fund, an asset management firm, highlighted a few stocks and The Boeing Company (NYSE:BA) was one of them. Here is what the fund said:
“We similarly remained invested in largely out-of-favor The Boeing Company (NYSE:BA), a global leader in developing and producing commercial jet aircraft. Due to some self-inflicted wounds and a bit of bad luck, as well as dramatic declines in air travel early in the pandemic, investor sentiment for this company has simply been awful. As part of our contrarian thinking, however, we view the business as critical to global transportation needs and see multiple catalysts to improve sentiment. In addition to the current surge in air travel worldwide, ramped up production of the 737 MAX aircraft and the pending restart of 787 Dreamliner deliveries should help turn broader sentiment. Additionally, we anticipate a meaningful inflection in cash flow as Boeing starts delivering aircraft currently in storage as well as the eventual expansion of its production in both core platforms.”
3. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 51
Dollar General Corporation (NYSE:DG), a discount retailer, provides various merchandise products in the southern, southwestern, midwestern, and eastern United States. The firm is among the best seasonal stocks to invest in. The company is among a handful of established retailers in the US that tend to do well during recessions. Amid the present macro backdrop, the firm has a chance for top-line growth and gross margin expansion as consumables take priority over discretionary purchases with household spending, per investment advisory Guggenheim.
On September 16, JPMorgan analyst Matthew Boss maintained an Overweight rating on Dollar General Corporation (NYSE:DG) stock and raised the price target to $294 from $287, noting the consumer and retail calmness of the firm regarding the second half of 2022.
At the end of the second quarter of 2022, 51 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Dollar General Corporation (NYSE:DG), compared to 53 the preceding quarter worth $2.25 billion.
In its Q3 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Dollar General Corporation (NYSE:DG) was one of them. Here is what the fund said:
“Executive Summary:
At LRT Capital Management we are continuously searching the market for great investment opportunities. Our favorite finds are companies with moats and growth opportunities that justify a higher price than what the stock is trading for. One of our holdings (approximately 1.5% of our long exposure) is Dollar General (DG), so today, we wanted to tell you a bit about this great company.
Company Overview:
Dollar General Corporation (NYSE:DG) is a discount retailer with the largest brick-and-mortar presence in the United States by store count. The company’s largest concentration of stores can be found in the southern, southwestern, midwestern, and eastern parts of the United States.10 Dollar General was founded in 1939 by J.L. Turner, who originally named the company “J.L. Turner and Son, Wholesale”. As the name suggests, the company began its life as a wholesaler, but quickly turned to a retailer of general store goods. By the early 1950s, the company had annual sales of $2 million per year,12 which is the equivalent of $22.95 million in 2021 dollars when adjusted for inflation (…read more)
2. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 80
The Home Depot, Inc. (NYSE:HD) operates as a home improvement retailer. The company is one of the most prominent seasonal stocks to invest in. The firm has a solid dividend history. It has consistently paid a dividend to shareholders for the past twenty years. In the past fourteen years, these payouts have also registered consistent growth. On August 18, the firm declared a quarterly dividend of $1.90 per share, in line with previous. The forward yield was 2.34%. The board of directors also authorized a new $15 billion share repurchase program recently.
On August 17, Truist analyst Scot Ciccarelli maintained a Buy rating on The Home Depot, Inc. (NYSE:HD) stock and raised the price target to $399 from $375, appreciating the strong second quarter earnings of the firm.
At the end of the second quarter of 2022, 80 hedge funds in the database of Insider Monkey held stakes worth $5.4 billion in The Home Depot, Inc. (NYSE:HD), compared to 75 in the preceding quarter worth $5.6 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and The Home Depot, Inc. (NYSE:HD) was one of them. Here is what the fund said:
“The Home Depot, Inc. (NYSE:HD) shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 109
The Walt Disney Company (NYSE:DIS), together with its subsidiaries, operates as an entertainment company worldwide. The firm features on the list of best seasonal stocks to invest in. On September 29, the company announced that it would be beginning a phased reopening of the famous theme park in Florida after closing it for two days in light of the impact of Hurricane Ian. The reopening would mean variable hours for the Disney World and Disney Springs, per the firm.
On May 12, investment advisory RBC Capital kept an Outperform rating on The Walt Disney Company (NYSE:DIS) stock and lowered the price target to $176 from $210. Analyst Kutgun Maral issued the ratings update.
At the end of the second quarter of 2022, 109 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in The Walt Disney Company (NYSE:DIS), compared to 113 in the previous quarter worth $5.2 billion.
In its Q2 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“The Walt Disney Company (NYSE:DIS) is one of the most beloved consumer companies in the world. Its media business has a rich library of intellectual property, which provides a powerful engine for creating new content across the Disney, Pixar, Marvel, and Star Wars brands. This content also contributes to the success of Disney’s theme parks, which generated nearly half the company’s earnings and grew more than 10% annually in the decade prior to the pandemic. Shares have fallen nearly 50% over the past year as investors worried about the company’s ability to transition its media business to a direct-to-consumer streaming world. This transition has required management to make investments in its Disney+ streaming service that are depressing profitability today. However, we believe these investments will ultimately produce attractive returns as Disney+ continues to grow subscribers and increase pricing over time. As a result, we were able to purchase shares at a substantial discount to our estimate of intrinsic value.”
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