“Sell in May and leave” might prove to be bad advice this year. Which stocks are best placed to reverse the seasonal trend? Discover 9 hand-picked opportunities to outperform in the months to come.
The month of May has arrived, and with it a well-known Wall Street idea: sell in May and leave. The thinking is simple. Investors sell stocks in May, sit in cash over the summer, and return to the market around October.
Historically, this model has some support. Since 1945, the index has gained about 2% on average from May to October, compared to about 7% from November to April.
But 2026 looks different. The S&P 500 and May both hit record highs. This is explained by a very good season of results.
About 84% of companies exceed expectations, which is the highest level in years. Profit growth was also strong, increasing more than 27% from last year. Analysts now expect earnings growth of more than 21% for the full year.
In this situation, selling stocks just because it’s May can mean missing out on a rally that still has strong support.
That said, risks remain. Global tensions remain worrying. Inflation is above the Fed’s target. Valuations are also tight, with the market trading above its long-term average. This suggests that the shares are not cheap.
For investors who want to hold on to their investments, the emphasis should be on selectivity. Look for companies with strong fundamentals, reasonable valuations, and solid analyst support.
9 stocks well positioned to outperform
We turned to Investing.com’s screener to find U.S. stocks that offer both downside protection and upside potential, no matter the season. To do this, we looked for values meeting the following criteria:
Market: United States
Market capitalization over $10 billion
Upside potential of more than 30% according to InvestingPro Fair Value (which synthesizes several recognized valuation models)
Upside potential of over 30% based on average analyst target
InvestingPro Financial Health Score greater than 2.5
Growth Health Score above 3/5
Cash flow health score above 3/5
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