We recently compiled a list of the 10 Best Seasonal Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where The Toro Company (NYSE:TTC) stands against the other seasonal stocks.
Seasonal patterns in the stock market refer to recurring trends that occur at specific times of the year. These patterns can influence investment strategies, as certain sectors or stocks tend to perform better during particular periods. Understanding these seasonal trends can aid investors in making informed decisions. One well-known seasonal phenomenon is the January Effect, which suggests that stock prices, particularly those of small-cap companies, tend to rise in January more than in any other month. This pattern has been observed historically, though its impact can vary from year to year. Different sectors exhibit unique seasonal trends. For instance, the technology sector often experiences strength in the fourth quarter, coinciding with increased consumer spending during the holiday season. Conversely, the energy sector may see heightened activity during the summer months due to increased travel and energy consumption.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Historically, certain months have demonstrated consistent performance trends. For example, September has been the most challenging month for stock performance, with the S&P 500 Index averaging a return of negative 0.7% since 1950. The index has finished September on the positive side less than half of the time, underscoring the volatile terrain that investors have historically traversed during this month. As of early February 2025, the market sentiment in the US has been dampened by ongoing concerns regarding tariffs with major US trading partners. Recent announcements indicate that existing tariffs may remain in place for an extended period, adding to market instability. Additionally, China has imposed tariffs on various US products and initiated an antitrust investigation into Google, with potential similar actions against Apple’s App Store.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
The stocks mentioned below in the list are the companies that tend to perform better at a certain time in a year. They are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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The Toro Company (NYSE:TTC)
Number of Hedge Fund Holders: 33
The Toro Company (NYSE:TTC) is a provider of outdoor environment products and related services. In the earnings of the fourth fiscal quarter, the company reported professional segment earnings of $638.9 million, increasing 25.5% compared with $509.1 million in the prior fiscal year. As a percentage of net sales, earnings rose to 18%, up from 13.9% last year. This growth was mainly due to lower non-cash impairment charges compared to the prior year, productivity improvements, and product mix. In December last year, the company declared a regular quarterly cash dividend of $0.38 per share, an increase over the previous quarter’s cash dividend of $0.36 per share. This marks the 16th consecutive year that the company has increased its dividend.
Overall TTC ranks 7th on our list of the best seasonal stocks to buy according to hedge funds. While we acknowledge the potential of TTC as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than TTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.