By Louis Navellier of Investor PlaceMost investors are aware of the "January Effect," a seasonal occurrence where the market tends to really rally in the first few months of a new year. This is because this is the time of year when institutional investors really get down to business with pension funding and other year-end trading events. This seasonal phenomenon creates a spike in volume and very favorable conditions on Wall Street. I expect that this January bounce will be only the beginning of the surge we see on Wall Street in 2010. Easier year-over-year earnings during the fourth-quarter reporting season will cause a buying party in late January and February, and then improving economic indicators will build momentum for several months into the new year. To help you capitalize on this seasonal strength, here are my Top 5 Stocks for January.
Amazon.com ( AMZN - Get Report) was my top pick for December and remains my No. 1 pick for January. Shares really took off after a strong quarterly report at the end of October, but the momentum has only gotten stronger behind this stock. Just recently, UBS became the latest firm to upgrade the company, raising its price target from $140 to $160.
AmBev ( ABV) is another old favorite back again from last month's list. Formally known as Companhia de Bebidas das Americas, translated to "the American Beverage Company," AmBev dominates the Brazilian beer market with brands such as Antarctica, Brahma and Skol.
Baidu ( BIDU - Get Report) is the leading Chinese-language Internet search engine, with more than 70% of China's search market. Some people say this company is China's Google ( GOOG - Get Report), but in fact this company is faring even better than that iconic company since Google's head in China resigned after failing to beat back BIDU's rapidly growing operations.
Cognizant Tech Solutions ( CTSH - Get Report) is a leading IT firm that provides a wide array of data and software services to businesses around the world. It offers its services to all manner of businesses, including financial services, health care, manufacturing and logistics, retail, telecommunications and the media.
Marvell Technology Group ( MRVL - Get Report) is a Bermuda-based firm that offers data storage and broadband communications gear. This "fabless" semiconductor company designs and sells hardware but outsources the actual fabrication of the devices to keep down costs.