The 25 Best November Stocks

By Karee Venema / October 25, 2017 / www.schaeffersresearch.com / Article Link

The S&P 500 Index (SPX) is barreling toward November boasting a roughly 14% year-to-date return -- and is fresh off an Oct. 23 record high of 2,578.29. This momentum could continue in the near term, too, considering the six-month period from November to April is one of the best times to own stocks. Shorter-term traders, meanwhile, may want to take a closer look at insurance firm Cincinnati Financial Corporation (NASDAQ:CINF) and construction name Vulcan Materials Company (NYSE:VMC), which are two of the best stocks to own in November.

The S&P 500 is Entering Its Best Six-Month Period

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, the SPX has typically outperformed in the upcoming six-month stretch, compared to the May-through-October period. Over the past 50 years, specifically, the S&P has averaged a gain of 6.48% from November to April -- much higher than the average 1.29% May-to-October return -- and boasts a stronger 76% win rate.

sp500 returns last 50 years

CINF, VMC Stocks Have Historically Outperformed in November

Narrowing the time frame, the SPX has averaged a 1.24% gain in November over the past 50 years -- making it one of the best months to own stocks. White ran the numbers to come up with a list of the 25 best stocks on the SPX in November, with CINF and VMC the only two names that have turned in a positive monthly return 100% of the time in the last 10 years.

best spx stocks in november

Breaking it down even further, CINF has averaged a monthly gain of 3.57% over the last 10 Novembers. Ahead the company's Thursday evening earnings report, the stock is trading down 0.9% at $75.55 -- testing its year-to-date breakeven mark, which has served as a magnet for the shares since last September. Below here is Cincinnati Financial stock's 100-day moving average, which caught a pullback from the equity's Aug. 3 record high of $81.98.

VMC, meanwhile, has turned in the best November performance of any SPX stock over the last decade, averaging a monthly return of 7.79%. A repeat of history would certainly be welcome, considering the shares are down 1% today at $122.36 -- bringing their year-to-date loss to 1.7%. What's more, a recent rally off Vulcan Materials' late-August lows near $112 have run into trouble in the $122.85 region, home to a 50% Fibonacci retracement of its first-quarter plunge.

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