With the warmer weather, it's the perfect time to add some good summer stocks -- stocks of companies that thrive in the summertime -- to your portfolio.
A theme park company is the ultimate example of a summer stock because amusem*nt parks are generally packed with crowds from Memorial Day until Labor Day. And even though these companies are seasonal stock picks, they're capable of generating returns on a long-term basis.
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Top summer stocks of 2024
Top summer stocks of 2024
Let's take a closer look at the best stocks to buy in the summer of 2024:
| Company | Market Capitalization | Description |
|---|---|---|
| Pool Corp. (NASDAQ:POOL) | $12.7 billion | Wholesale distributor of swimming pool supplies and equipment. |
| First Solar (NASDAQ:FSLR) | $20.5 billion | Solar technology company involved in the design, manufacture, and sale of thin-film solar modules. |
| Home Depot (NYSE:HD) | $300 billion | Home improvement retailer that sells construction products and services. |
| Avis Budget Group (NASDAQ:CAR) | $7.7 billion | Rental car company with more than 11,000 locations in approximately 180 countries. |
| Camping World Holdings (NYSE:CWH) | $1.1 billion | Recreational vehicle retailer offering new and used vehicles, parts, and service. |
| Redfin (NASDAQ:RDFN) | $1.2 billion | Full-service real estate brokerage that offers low fees of 1% to 1.5%. |
| Delta Air Lines (NYSE:DAL) | $25.3 billion | Major U.S. airline with service to more than 300 destinations across more than 50 countries. |
| Walt Disney (NYSE:DIS) | $168 billion | Entertainment leader with films, theme parks, merchandise, and streaming services. |
1. Pool Corp
1. Pool Corp
There might not be a more fitting summertime stock than Pool Corp. True to its name, Pool Corp. is a leading wholesale distributor of swimming pool equipment, parts, supplies, and related outdoor living products.
While many of the best summer stocks were severely affected by the COVID-19 pandemic, Pool Corp. is a notable exception. The company's profits increased significantly in 2020 as people put more money into their homes, and they have kept growing since then.
After setting a sales record in 2020, Pool Corp.'s net sales rose by 35% in 2021 and another 17%, climbing to $6.2 billion in 2022. The company reports that about 60% of consumer spending in the pool industry is for pool maintenance and repairs. Even if pool demand decreases, Pool Corp. is well-positioned to continue profiting from its customers.
2. First Solar
2. First Solar
Solar energy stocks often see a bump in performance when the weather gets warmer. First Solar is unique among solar companies for the proprietary thin-film module it manufactures and sells. These thin-film modules outperform silicon models in low light and hot weather.
The solar industry is still growing, and First Solar's strong financials should help it capitalize on the growth. Net sales were $2.6 billion in 2022, down from $2.9 billion in 2021. But it closed the year well, with $1 billion in net sales during the fourth quarter, largely due to module sales and the sale of its Luz del Norte project in Chile.
First Solar ended 2022 with a record contracted backlog, and it has sales contracts signed through 2026. It's also continuously expanding its lineup of technologies, as it did with its May 2023 acquisition of European thin film company Evolar.
3. Home Depot
3. Home Depot
Home Depot does well during the summer months. The home improvement leader tends to post its biggest revenue numbers during the second and third quarters of the year when many people work on their homes.
The home improvement giant has posted strong sales numbers that increased by 14.4% in 2021 and 4.1% in 2022. It recorded $157.4 billion in sales in fiscal 2022, along with net earnings of $17.1 billion.
As the largest home improvement retailer, Home Depot is well-positioned to continue growing and is one of the safer investments to hold. The company's stock is also well-suited for dividend investors since Home Depot has consistently increased its dividend over many years, including by 10% in 2023.
4. Avis Budget Group
4. Avis Budget Group
Avis Budget Group is a rental car company that boasts more than 11,000 locations worldwide. Its biggest brands are Avis Rental Car, Budget Rental Car, and Zipcar, the innovative car rental company that allows members to use cars for as little as 30 minutes. The busy summer travel season is good for Avis since many travelers need rental cars after arriving at their destinations.
Although Avis was heavily affected by the COVID-19 pandemic, it has bounced back extremely well. It reported record revenues of $12 billion in 2022, a 29% increase from the prior year and a 31% increase from its pre-pandemic numbers in 2019.
5. Redfin
5. Redfin
The summer months are the busiest for real estate, and Redfin is one of the most interesting real estate stocks. It aims to be a one-stop shop for all types of real estate transactions, including buying, selling, and renting.
The big draw, though, is its low-cost model. Redfin charges a 1.5% listing commission, half the industry standard. Because of its lower fees, it reports having saved customers more than $1 billion so far.
Rising interest rates and a market cooldown are both factors to consider before investing in Redfin. But the company's innovative approach gives it an edge, considering the inconvenience and expense of the traditional home-buying process.
Fiscal Quarter
In the financial world, a quarter refers to a three-month period used for reporting and recording financial performance, typically representing one-fourth of a company's fiscal year.
6. Delta Air Lines
6. Delta Air Lines
Most airline stocks are solid picks for the summer since that's the busiest season for air travel. That's especially true now that travel is surpassing even pre-pandemic levels.
Of the major carriers, Delta is a strong long-term play because it has plenty of international routes and hubs in multiple big cities. Delta is also known for its customer service, regularly ranking near or at the top of the J.D. Power ratings for customer satisfaction.
Delta has partnered with American Express (AXP 1.51%) since 1996, and the companies offer several co-branded credit cards. The partnership adds another source of revenue and helps to further boost customer loyalty.
7. Walt Disney
7. Walt Disney
With a long history of blockbuster movies and family-friendly theme parks worldwide, The Walt Disney Company has consistently been one of the top summer stocks to buy.
Disney owns several of the top film production companies, including Marvel Studios, Lucasfilm, and Pixar, and it strategically schedules many of its tentpole films during the summer blockbuster season.
Summer vacation is a popular time of year for Disney's parks and resorts, but Disney isn't wholly reliant on the summer season. Its diverse revenue streams allow it to thrive even during colder weather.
Disney+, in particular, has been a big winner for the company's media and entertainment segment. That's not its only streaming service, either. It also owns ESPN+ and has majority ownership of Hulu.
Related investing topics
Should you invest in summer stocks?
Should you invest in summer stocks?
Investors historically have been cautioned against investing in the summer months. The well-known adage to "sell in May and go away" is based on expectations for muted gains when the weather is nice.
In recent years, the stock market has performed well throughout the summer. This season of the year is an important time for many businesses, making it worthwhile to consider adding some high-quality summer stocks to your portfolio.
American Express is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has positions in Delta Air Lines. The Motley Fool has positions in and recommends Home Depot, Redfin, and Walt Disney. The Motley Fool recommends Camping World, Delta Air Lines, and First Solar and recommends the following options: short February 2024 $8 calls on Redfin. The Motley Fool has a disclosure policy.
