EarningsBeats Digest

Published: Mon, 01/04/21

EarningsBeats.com Digest for January 4, 2021

History Says to Follow These Industry Groups in January

I'm a fan of history and I'm firm believer that history repeats itself with regard to the stock market. Therefore, I definitely pay attention to which groups tend to perform well during different periods of the year. Seasonality isn't my primary indicator, and I don't buy strictly based on seasonal tendencies, but it definitely serves a purpose in my analysis. As we begin a new year, let's keep in mind that we're in the midst of a secular bull market that began several years ago. We perform seasonality work for our members at EarningsBeats.com and the following is a good example of what we might expect in January 2020:

This snapshot shows us that software tends to be the technology leader in January, averaging 1.6% above the S&P 500. That suggests to me that we consider software stocks that are demonstrating bullish technical patterns, especially if those same stocks perform well in January. That leads me to the following seasonal chart:

WDAY has risen 63% of Januarys over the past 9 years, but its average gain during January has been 6.5%, which places it among our Top 20 Seasonal stocks for January.

If you'd like to check out the other 19 seasonal stocks for January, sign up for our fully-refundable $7 30-day trial by clicking HERE.

Happy New Year and Happy Trading!

Tom Bowley, Chief Market Strategist

EarningsBeats.com

"Better Timing. Better Trades."