As the year draws to a close, the stock market appears poised for a rally—a trend that typically aligns with the accrual of profits in the fourth quarter for the S&P 500 index. Historically, this period has been favorable for many equities, with certain stocks demonstrating even stronger seasonal performance. Notably, some stocks exhibit patterns that suggest they may surpass overall market gains during this time, making them appealing choices for investors seeking to capitalize on year-end momentum.
Two stocks stand out due to their historical performance and current technical indicators: Zebra Technologies and Royal Caribbean (RCL). According to analyses, Zebra Technologies has shown robust seasonal returns, rising 91% of the time between October 9th and November 30th. Recent technical data indicates a series of higher momentum lows, coupled with an upturn in relative strength during the fourth quarter of 2023. This suggests that Zebra is not only maintaining a strong market presence but is also not currently overbought, indicating further room for growth. Forecasts suggest that Zebra could reach a price of $450 by the end of 2024, making it a compelling option for investors.
On the other hand, Royal Caribbean has historically gained 83% of the time from October 3rd to December 31st. While the stock may appear overbought when looking at its price alone, its relative strength continues to hit new highs, indicating sustained interest and demand in the market. The positive momentum suggests that RCL will likely maintain its strong performance through the end of the year, with price targets estimating a climb to around $210. These indicators suggest that Royal Caribbean shares also hold considerable potential for investors looking to benefit from seasonal trends.
The seasonal cycles of both Zebra Technologies and Royal Caribbean are visually represented in accompanying charts that illustrate their performance trajectories during this time of year. Chart analyses further reinforce the bullish outlook for both stocks, emphasizing the technical readings that suggest continued strength. The favorable historical performance of these stocks during the fourth quarter supports the likelihood of their outperformance, providing investors with solid opportunities for portfolio enhancement.
In conclusion, as the stock market enters the fourth quarter, both Zebra Technologies and Royal Caribbean present significant opportunities for investors. Their historical seasonal patterns, combined with positive technical indicators, suggest that they are well-positioned for growth. Investors looking to capitalize on the year-end rally may find these stocks to be exceptional picks, with forecasts indicating strong potential returns as the economic landscape remains favorable for equities in this time frame.