This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Hot Stocks to Survive Summer

Stocks in this article: DIS IRG SAM

Editor's note: As part of our partnership with Nightly Business Report, TheStreet's Debra Borchardt will join NBR Monday (see video and transcript) to look at stocks that will benefit from being a seasonal favorite.

NEW YORK ( TheStreet -- Wall Street is running short on optimists these days.

"We're in for a rough summer," said Randy Frederick, a managing director at Charles Schwab.

Looking at trading volumes, it seems that many investors have decided it just isn't worth the risk to be in the market, adhering to the old adage "sell in May and go away." But while that strategy may have spared some wrinkles over the last two summers, investors would also have missed out big moves.

BMO Capital Markets investment strategist Brian Belski dug a little deeper and discovered that staying the course through the past two summers paid off in the long run.

Word on the Street

"Investors who were not invested in the market between Memorial Day and Labor Day during 2010 and 2011 dramatically underperformed those who maintained their discipline despite the extreme volatility exhibited during those months," said Belski. He added that if a person sold in May in 2010, it would have cost them 17%; if they did the same in 2011, it would have hurt another 14%. Seven of the 10 best days of 2010 happened in the summer, and four of the 10 best in 2011.

The following stocks are ripe for some summer loving. On a hot summer day, a Sam Adams summer ale from Boston Beer Co. (SAM) is just the thing. It may also quench your portfolio's thirst for performance. Fundamentally, the company is expanding its brewing capacity in Cincinnati, and it's hiring. That's always a positive sign.

Total beer industry sales may be down, but not on the craft beer side. The company has started the Alchemy & Sciences project as a craft brew incubator. It's included expenses for the project in its financial forecasts but not potential profits, leaving room for upside.

Sam Adams' main risk is rising costs for raw goods. One risk it isn't worried about is Greece. The stock is down nearly 4% so far in 2012, but is up more than 25% in the past year, hitting a 52-week high of $115.49 in Dec. 27.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs