7 Investments That Usually Soar During the Summer

By Tim Lemke on 2 June 2016 0 comments

It's often said that investors should "sell in May and go away," but that doesn't mean you can't make money in summertime. There are plenty of sectors and industries that do well in the warm months and can generate solid returns.

Let's take a look at the investments that will keep your portfolio growing even while you're basking on the beach.

1. Theme Park Stocks

Gas prices are still low, so that means people will drive places this summer. And they'll head to parks owned by companies like Cedar Fair [NYSE: FUN], Six Flags [NYSE: SIX], and Disney [NYSE: DIS]. All three of these companies hit their 52-week highs between May and August last year, and shares have been creeping up again in recent weeks. A strong summer for these properties could mean good growth for their share prices.

2. Airlines

People travel during the summer, so it's make or break time for most airlines. And there's some evidence suggesting that airline stocks do well between June and September. The Dow Jones U.S. Airlines Index rose 5% last summer, 2% in 2014, and 15% in 2013. The airline industry has gotten through much of the turbulence of years past, and the low cost of fuel now means there are some solid stocks including Southwest [NYSE: LUV] and Delta Airlines [NYSE: DAL].

3. Athletic Apparel

If people are getting outside, they're spending money on workout clothes and shoes. Last year, shares of Under Armour [NYSE: UA] rose nearly 8% during the summer months, while Nike shares rose 20%. Other sportswear companies including Columbia, VF, and Foot Locker had very good summers.

4. Food and Beverage Stocks

The S&P 500 Food and Beverage Select Industry Index has seen gains in three of the last four years. Consider Coca-Cola, which saw shares rise more than 20% between June and September last year. Monster Beverage has had consistent gains during the summer, including a 24% increase in share value during the summer of 2014.

5. Biotechnology

It's one of the market's more volatile sectors, but it has historically done quite well in the summer. The NASDAQ Biotechnology Index rose about 8% between June and September in 2014, a whopping 25% in 2013, and more than 12% in 2012. The index did drop during the summer of 2015, but that was just the third summer decline since 2005. You can invest in a broad array of biotech firms by investing in the SPDR Biotech Select Index ETF [NYSE: XBI] or a healthcare fund such as Vanguard's Health Care Index Fund [NYSE: VHCIX]. Individual stocks worth a look include Gilead Sciences [NASDAQ: GILD] and Amgen [NASDAQ: AMGN].

6. Technology

Plain old technology stocks don't take a break in summer. Facebook [NASDAQ: FB] went up 11% last summer and 15% during the same period in 2014. Amazon [NASDAQ: AMZN] saw shares go up 24% in the summer of 2015. Online auction company eBay has also been a solid summer performer, once outperforming the S&P 500 for five straight years.

7. Real Estate

No one goes house hunting when it's cold outside. But when the weather's nice, the buyers come out. And that's when home prices increase due to increased competition. A chart of median home prices by month almost always looks like a roller coaster, with prices rising in June and then falling back down in the fall and winter. So if you own property now, the summertime is a good time to sell.

Any summer month stock winners we've missed? Let us know in comments!

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