Top Stock Pick for December: The Streaming Giant with 20 Years of Data

As we near the end of the year, many investors are looking for that one last winning opportunity in 2024. While the S&P 500 has seen a strong 27% increase this year, some may feel like they missed out on gains or made premature moves earlier in the year.

But fear not, because when it comes to seasonal stock performance, Netflix Inc. (NFLX) shines bright. If history is any indication, Netflix could be the perfect choice to buy in December and hold onto through January.

Let’s break down Netflix’s stellar seasonality. According to data from Seasonax, Netflix has historically outperformed its peers in the S&P 500, boasting an average gain of 14.1% from early December through the end of January, with a median return of 11%. Over the last 20 years, Netflix has closed this two-month period in the green 80% of the time.

In positive years, Netflix has seen an average return of nearly 25%, with the best holiday season return reaching an impressive 117%. Conversely, in negative years the average loss was around 20%. This consistency in delivering double-digit returns makes Netflix a seasonal gem for traders looking to take advantage of these market patterns.

What’s even more impressive is Netflix’s performance during election years. In the last five election cycles, Netflix has never posted a loss during the December-January period, with an average return of 34.33% and a maximum profit of 117.42% during the 2012-2013 cycle.

So why does Netflix stand out during the holiday season? It could be due to factors like holiday binge-watching, new-year optimism from investors, and the overall seasonal market rally that lifts positive sentiment for stocks like Netflix.

In conclusion, whether you’re looking for triple-digit gains or a reliable performer, Netflix has proven to be a top choice for late-year opportunities. As we approach the end of the year, keep an eye on Netflix as it could be the holiday stock you can’t afford to ignore.