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Some consider market patterns akin to astrology, but seasonality can play a substantial role.
Research shows that the S&P 500 typically struggles throughout the summer months (July and August). The index limps into September before closing strong in November and December. To that end, investors should read the tea leaves of the past few months and to find the stocks that suffered most. They’re likely to follow seasonal trends and ready themselves for a rebound before 2023 ends.
General Motors (GM)
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The rest of 2023 should mark a reversal for downtrodden General Motors (NYSE:GM). Amid supply chain struggles, labor clashes, and tighter household budgets restricting spending, GM’s stock is down about 2% since January.
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Yet, the company plans to double its electric vehicle (EV) production by December. That’s a notable goal because GM is already the second-largest EV manufacturer and pushed 50,000 EVs off the line since January. GM’s full-court press into EV will help the vehicle giant pivot to a sustainable future. Investors and consumers eagerly anticipate the Silverado EV, Blazer EV, and more set to release within a year.
GM will also expand its recurring revenue through expanded software offerings on a slightly longer horizon. By 2030, GM expects $25 billion annually from in-car software services, joining a growing trend among EV manufacturers. The move ensures a more luxurious and bespoke experience for drivers. At the same time, it serves investors and shareholders well as the company diversifies revenue streams.
Monster Beverage (MNST)
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Monster Beverage (NASDAQ:MNST) is one of the best performers of the past 25 years, which may come as a surprise. It’s true. This energy drink giant ran from a measly $0.05 in 1998 to a whopping $55 today, more than 100,000% gains!
Still, the stock ticked down a bit recently as lagging sales and poor earnings made investors jump ship. This dip will likely be brief, though. Energy drink sales are expected to grow 8%, compared to soft drinks’ lackluster 4% forecast growth. At the same time, Monster is rolling out expanded product lines and penetrating deeper into untapped markets.
After a 2022 buyout of hard-seltzer producer CanArchy Craft Brewery, Monster released its hard-seltzer dubbed The Beast Unleashed. It’s too early to forecast sales figures. But extrapolating from general market excitement for seltzers as an alternative to beer, this new venture stands to bring a new segment of consumers into Monster’s revenue stream.