3 Seasonal Stocks to Buy Immediately

Core Insights - December is a significant month for corporate spending, driven by a "use it or lose it" mentality among department heads, leading to increased expenditures in various sectors [1][2] - Companies like Cloudflare benefit from year-end spending as IT managers allocate excess budgets to software, resulting in a notable increase in stock prices during first-quarter earnings announcements [3][4] - Seasonal effects are prevalent in industries such as natural gas and retail, where companies experience predictable profit surges during specific times of the year [5][6] Group 1: Company-Specific Insights - Cloudflare Inc. (NET) is a leading cybersecurity firm that protects 80% of corporate and government websites from DDoS attacks, benefiting from increased spending during the fourth quarter [3][21][24] - Cheniere Energy Inc. (LNG) is the largest exporter of liquefied natural gas in the U.S., with stock prices rising 20.7% in the first two months of the year due to seasonal demand in Europe [10][12] - DraftKings Inc. (DKNG) experiences revenue boosts during major sporting events, with a historical 13% increase in share prices from January through mid-February [14][19] Group 2: Market Trends and Predictions - Analysts expect Cloudflare's revenues to rise by 23% this year, with net income projected to increase by 25% to $942 million, indicating strong fundamental performance [26] - DraftKings is anticipated to achieve over$1 billion in annual profits by 2027 as it transitions from user acquisition to monetization [19] - Seasonal investing strategies, such as those developed by TradeSmith, aim to identify optimal buying moments for high-quality companies, leveraging historical data and seasonal trends [7][29][30]