December is usually a very good time to go with momentum stocks. What has been doing well the previous 11 months seems likely to continue in December, so says Barron’s. Momentum investing as a style has been well-founded in studies, but what is less well know is that it is particularly strong in the last month of the year. In fact, the momentum effect for stocks in December is 10x greater than in the other months of the year! Interestingly though, the effect is completely reversed in January, when tax-loss selling is concluded. With that in mind, here are some stocks to look at in the new year (the losers from this year): General Electric, Cognex, Dentsply Sirona, Western Digital, Adient, Bristow Group, McDermott International, Owens & Minor, Synnex, U.S. Silica Holdings, and Winnebago Industries.
FINSUM: This is quite an interesting angle as the losers from one year usually fall hard in December and then perk up in January.