Investors can only hope stocks do as well in December as they did in November. There are definitely some S&P 500 stocks that glisten in the last month of the year.
Nine S&P 500 stocks — including tech name Skyworks Solutions, health care play Eli Lilly and energy stock Baker Hughes — beat the index in December in each of the past five years. Additionally, these stocks all gained 3% or more, on average, in the month.
And that's bullish as December already tends to be one of the best months of the year, says "Stock Trader's Almanac." "Wall Street's only 'free lunch' served before Christmas," the Almanac says.
How December Sizes Up For The S&P 500
How do stocks do in December? It has been the third-best month of the year going back to 1950, says "Stock Trader's Almanac." During the month, the S&P 500 gained an average of 1.5%.
But to be fair, December is somewhat of a wild card. And it's been disappointing lately, losing 0.8% on average in December the past five years. Last December, the S&P 500 dropped 5.9%. And it shed 9.2% in 2018, marking the worst December since 1931.
But stocks can also surprise to the upside during the month, too. The S&P 500 gained in 2019, 2020 and 2021 by 2.9%, 3.7% and 4.4%, respectively. But a little more than a handful of stocks do even better than that.
S&P 500 Stocks That Shine In December
When it comes to top performers in the month, Skyworks Solutions stands out. The designer of semiconductors not only topped the S&P 500 every month of December, it gained an average of 8.3% during the month in the past five years. Yes, it fell 7.9% in 2018. But it more than made up for it by rising 23% in 2019.
Investors need to look past a couple of rough years fundamentally, though, if they buy now. The company's adjusted profit per share is seen dropping 26% this fiscal year ended in January 2024 and falling an additional 6.7% in the fiscal year ended in January 2025.
Eli Lilly, the red-hot developer of weight-loss and neurological treatments, also does especially well in December. The stock, already up 61% this year, gained an average of 7.2% in the month of December. And last year shares fell only 1.4%, a drop in the bucket compared with big double-digit percentage jumps in 2019, 2020 and 2021.
Eli Lilly's bottom line is poised to explode next year. Analysts think the company will make $12.31 a share in 2024, up 85% from 2023.
Looks like there's plenty for investors to look forward to in December.
Top-Performing S&P 500 Stocks In December
All topped index in past five Decembers
| Company | Ticker | Avg. change in Dec. |
|---|---|---|
| Skyworks Solutions | 8.3% | |
| Eli Lilly | 7.2% | |
| Baker Hughes | 7.2% | |
| Nike | 5.4% | |
| Las Vegas Sands | 4.9% | |
| Teleflex | 4.2% | |
| AES | 3.6% | |
| Estee Lauder | 3.3% | |
| Bunge Global | 3.2% |
