8 Companies That Are On This Year’s Santa Rally Stocks List

Tags: Invest, investing, News, Rakuten Trade, S&P 500, Santa Rally, Trading, US

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It’s time to dust off your investment portfolios, because Santa Claus is coming to town! That’s right, the Santa Rally is coming around once more, and with it comes massive investment opportunities that you might not want to miss.

For those outside the know, a Santa Rally is a tendency for the S&P 500 index to increase over the final 5 trading days of December and the first 2 trading days of January. Why does this happen? Most speculate that it is due to general optimism around the holidays, people investing holiday bonuses and an increased influence from investors.

According to the Stock Trader’s Almanac, a Santa Rally has occurred about 59 times since 1950, so it has been a rather consistent annual event.

What’s on Santa’s hottest stock list?

In this year’s Santa Rally, there are quite a few notable brands that investors might want to look. According to Yahoo!Finance, these include:

Colgate-Palmolive (CL): A reliable brand, Colgate is set to leave a lasting impact, especially after festive meals.
Kroger (KR): Poised for increased sales, Kroger offers affordable necessities at competitive prices especially for holiday shopping needs. Analysts rate KR a moderate buy with a USD52.75 price target, projecting over 20% upside.
Coca-Cola (KO): A staple at festive gatherings, Coca-Cola deserves a spot in your investment portfolio due to its sustained popularity. PLUS, Coca-Cola offers a forward yield of 3.15%.
IBM (IBM): Tech gets a holiday twist! IBM stands out with its diverse specialties, including AI, machine learning, cybersecurity, and blockchain. It also delivers a forward yield of 4.28%.
Intel (INTC): Intel’s stocks are on the rise, showcasing positive year-to-date performance. In the last month, it’s up 11.25%.
Crocs (CROX): Picture stomping through the crowds with your favorite pair, adding a comfortable stride to your portfolio. It’s also up in the last month but at 20.50%

Watch these retail-related stocks

According to Rakuten Trade’s own Research Team, certain retail related stocks such as Nike Inc (NYSE:NKE) and Costco Wholesale Corporation (NASDAQ:COST) are also poised to benefit from potential interest rate reductions in the future.

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This article is contributed by Khairul Idzwan Bin Kamarruzaman from Rakuten Trade.