5 Best Seasonal Stocks To Buy Now

In this article, we discuss 5 best seasonal stocks to buy now. If you want to see more stocks in this selection, check out 12 Best Seasonal Stocks To Buy Now. 

5. Royal Caribbean Cruises Ltd. (NYSE:RCL)

Number of Hedge Fund Holders: 42

Royal Caribbean Cruises Ltd. (NYSE:RCL) is a Florida-based cruise company that operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises brands. Royal Caribbean Cruises Ltd. (NYSE:RCL) is one of the top seasonal stocks to invest in, considering demand for cruises usually rises in the summer or holiday season. On December 14, Royal Caribbean Cruises Ltd. (NYSE:RCL) announced that it has signed an agreement with the Finnish government focused on innovative and sustainable shipbuilding in Finland. 

Barclays analyst Brandt Montour on December 15 raised the firm’s price target on Royal Caribbean Cruises Ltd. (NYSE:RCL) to $70 from $66 and reaffirmed an Overweight rating on the shares. 

According to Insider Monkey’s Q3 data, 42 hedge funds were long Royal Caribbean Cruises Ltd. (NYSE:RCL), compared to 28 funds in the prior quarter. John W. Rogers’ Ariel Investments is a significant position holder in the company, with 3.16 million shares worth $120 million. 

Ariel Investment made the following comment about Royal Caribbean Cruises Ltd. (NYSE:RCL) in its Q3 2022 investor letter:

“Global cruise vacation company Royal Caribbean Cruises Ltd. (NYSE:RCL) also aided relative performance in the quarter. With the entire fleet returning to service in June, RCL delivered positive EBITDA and operating cash flow for the first time since the pandemic began. Forward booking commentary is also encouraging with both trends and pricing for 2023 ahead of 2019 levels. Though questions persist around the macro backdrop, RCL has an experienced executive management team with operational expertise at its helm, as well as a healthy liquidity position. Over the long term, we believe the headwinds travel and leisure are experiencing will soften and expect RCL’s fundamentals will prove resilient in the face of adversity. At today’s valuation, RCL is currently trading at a nearly -60% discount to our estimate of private market value.”

4. Vail Resorts, Inc. (NYSE:MTN)

Number of Hedge Fund Holders: 43

Vail Resorts, Inc. (NYSE:MTN) was founded in 1845 and is based in Broomfield, Colorado. The company operates mountain resorts and regional ski areas in the United States. It operates through three segments – Mountain, Lodging, and Real Estate. It is one of the top seasonal stocks to monitor. On December 8, Vail Resorts, Inc. (NYSE:MTN) declared a C$1.91 per share quarterly dividend, in line with previous. The dividend is payable on January 10, to shareholders of record on December 27. 

On December 22, Truist analyst Patrick Scholes raised the price target on Vail Resorts, Inc. (NYSE:MTN) to $292 from $270 and maintained a Hold rating on the shares. The analyst is citing his in-person channel checks this season, observation on staffing, and winter visitation trends suggesting “noticeable improvement”, even though conditions are still “not 100% back” to pre-COVID levels. 

According to Insider Monkey’s third quarter database, 43 hedge funds were long Vail Resorts, Inc. (NYSE:MTN), compared to 42 funds in the prior quarter. Select Equity Group is the largest stakeholder of the company, with 1.4 million shares worth $312 million. 

Baron Funds made the following comment about Vail Resorts, Inc. (NYSE:MTN) in its Q3 2022 investor letter:

“Vail Resorts, Inc. (NYSE:MTN) owns and operates a premier portfolio of mountain resorts including marquee resorts such as Vail, Beaver Creek, Breckinridge, Park City, Whistler Blackcomb, and Keystone. Vail’s shares have declined 43% from a peak of $376 in November 2021 to a recent price of only $215 and are currently valued at only 11 times cash flow versus its long-term average multiple of approximately 15 times cash flow.”

3. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Holders: 53

MGM Resorts International (NYSE:MGM) is based in Las Vegas, Nevada, and the company owns and operates casino, hotel, and entertainment resorts in the United States and Macau. It operates through three segments – Las Vegas Strip Resorts, Regional Operations, and MGM China. MGM Resorts International (NYSE:MGM) is one of the leading seasonal stocks to invest in, as tourism and demand for resorts surges during the holidays. 

On December 5, Truist analyst Barry Jonas upgraded MGM Resorts International (NYSE:MGM) to Buy from Hold with a price target of $50, up from $40. The analyst stated that he had previously been more cautious with bear-case macro risks related to the Strip and destination markets, but he also expects relative outperformance in 2023 on the Strip’s strong event calendar and returning midweek business travel. 

According to Insider Monkey’s data, 53 hedge funds were long MGM Resorts International (NYSE:MGM) at the end of September 2022, compared to 46 funds in the last quarter. Keith Meister’s Corvex Capital is the largest stakeholder of the company, with 6.6 million shares worth $198.3 million. 

Baron Funds made the following comment about MGM Resorts International (NYSE:MGM) in its Q3 2022 investor letter:

“MGM Resorts International (NYSE:MGM) is a leading global casino and entertainment company with 29 unique hotels and casinos including some of the most recognizable resort brands such as Bellagio, MGM Grand, ARIA, and Park MGM. At its recent price of only $30 per share, we believe MGM’s valuation is compelling at only 6 times 2023 estimated cash flow.”

2. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 61

Lowe’s Companies, Inc. (NYSE:LOW) is a North Carolina-based company that operates as a home improvement retailer in the United States and internationally. The company offers a range of products for construction, maintenance, repair, remodeling, and decorating. Summer is the most popular time of year to renovate, making Lowe’s Companies, Inc. (NYSE:LOW) one of the best seasonal stocks to invest in. For full-year 2022, Lowe’s Companies, Inc. (NYSE:LOW) expects total sales of $97 billion to $98 billion, versus a consensus of $96.89 billion. 

On December 7, Goldman Sachs analyst Kate McShane raised the price target on Lowe’s Companies, Inc. (NYSE:LOW) to $246 from $241 and maintained a Buy rating on the shares. The analyst stated that she is incrementally more positive about the company after its Analyst Day as the management believes that a weak market scenario is the least likely outcome for 2023.

According to Insider Monkey’s data, 61 hedge funds were bullish on Lowe’s Companies, Inc. (NYSE:LOW) at the end of Q3 2022, compared to 53 funds in the prior quarter. Bill Ackman’s Pershing Square is the leading position holder in the company, with 10.3 million shares worth about $2 billion. 

Baron Funds made the following comment about Lowe’s Companies, Inc. (NYSE:LOW) in its Q3 2022 investor letter:

“Lowe’s Companies, Inc. (NYSE:LOW) is the second-largest home improvement center in the U.S. The company has several competitive advantages including scale, distribution efficiencies, interconnected retail through stores/internet, excellent management, and a strong balance sheet. The company is valued at only 14 times estimated earnings per share versus its long-term average P/E multiple of approximately 18 times estimated earnings per share.

The shares of Lowe’s Companies, Inc. increased 7% in the most recent quarter following better-than-expected quarterly business results. Lowe’s is the second largest home improvement center in the U.S. The company has several competitive advantages including scale, distribution efficiencies, interconnected retail through stores/internet, excellent management, and a strong balance sheet. We believe the shares are attractively valued at only 14 times estimated earnings per share versus a long-term average P/E multiple of approximately 18 times estimated earnings per share.”

1. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 89

The Home Depot, Inc. (NYSE:HD) is one of the best seasonal stocks to invest in. The company operates as a home improvement retailer, selling building materials, home improvement products, lawn and garden products, and decor products. For full-year 2022, The Home Depot, Inc. (NYSE:HD) expects total sales growth and comparable sales growth of approximately 3% and an operating margin of nearly 15.4%. 

Cowen analyst Max Rakhlenko on December 13 raised the price target on The Home Depot, Inc. (NYSE:HD) to $379 from $350 and maintained an Outperform rating on the shares. The analyst said they exemplify best-in-class retail execution with leading Pro share and a growing flywheel that should serve the company well into a constrained macro backdrop into 2023.

According to Insider Monkey’s data, 89 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD) at the end of the third quarter of 2022, compared to 80 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with 8.16 million shares worth $2.25 billion. 

Matrix Asset Advisors made the following comment about The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter:

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”

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