November ended flat for the S&P 500, which gained just 0.13%, but recent trends suggest a positive start to December.
Since hitting a low on Nov. 21, the index has rebounded 4.45% as investors become more confident the Fed will cut rates.
This will happen next Wednesday, with markets pricing in a more than 85% chance of a 0.25% rate cut. Expectations of additional cuts next year also support a bullish outlook for stocks.
The month of December often benefits from positive seasonal trends, with a “Christmas rally” usually peaking in the week leading up to December 25.
The just-concluded third-quarter earnings season largely supported the current bull market, despite some disappointing results.
Overall, conditions appear favorable for a strong December in U.S. markets, making S&P 500 stocks worth watching for the best opportunities.
Finding the Best S&P 500 Stocks for December
To find the best opportunities for December, we used Investing.com’s screener to identify stocks that are undervalued based on fundamental metrics, show good financial health, and have positive analyst sentiment.
This is how we define our research:
In this research, we used InvestingPro metrics, including Fair Value and Health Score, which are only available to InvestingPro subscribers with a PRO+ plan. Fair value provides an average of several recognized valuation models for each stock, while health score evaluates several financial metrics to measure the overall strength of a company.
We were thus able to identify 11 opportunities:
These S&P 500 stocks are undervalued by 21.3% to 67.4% according to Fair Value, while analysts see potential gains of 23.1% to 41.5%.
There are also other ways to find opportunities for December and beyond. Fed rate cuts are supporting dividend stocks, and investors facing declining income from bond and money markets are increasingly turning to stocks.
Investing.com’s screener also includes several ready-made dividend stock searches:
Please keep in mind that some of these pre-configured searches are only available to InvestingPro and Pro+ subscribers.
If you are…
..
