Top Stocks For The Summer Heat
Summary
- Summer is here. Although tariff uncertainty persists, summer-centric industries can offer Strong Buy-rated stocks despite market volatility.
- Certain sectors and industries have historically experienced an uptick or strong performance during the summer months due to shifts in consumer behavior.
- Consumer staples offer defensive, recession–resistant, and tariff-resilient characteristics, perfect throughout the year, especially following recent US-China trade truce violation accusations.
- Domestically focused services and companies with strong fundamentals may also prove to be great buys for portfolios, given the Trump Administration’s ‘America First’ agenda.
- Consider 3 summer seasonal Quant-Rated stocks with strong fundamentals offering an average 1-Y return of +32%, incredible profitability, and solid valuations.
- I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.
Tariff Uncertainty
Tariff uncertainty has been one of the biggest drivers of market volatility in 2025. While market movement has shifted in both directions, many investors have rotated to defense for safety or high-conviction stocks, as others have rotated outside of U.S. assets. Whatever your strategy, the weaponization of tariffs has continued to make headlines.
On May 29th, the Trump Administration received a temporary stay against a May 28th ruling by the US Court of International Trade, which blocked many of Trump’s tariffs. The administration defended its stance on global trade negotiations, particularly following a Financial Times “Trump Always Chickens Out” (TACO) trade meme that went viral. President Trump responded by saying, “You call that chickening out? It’s called negotiation.” And while European markets rallied on delays to EU tariffs until July 9th, the temporary truce reached by China and the US rolling back tariff hikes until mid-August took another turn, when Trump released a statement on May 30th accusing China of violating the trade agreement. Summer is heating up!
Summer Stocks To Buy Now
Consumer staples like food and beverages offer a defensive hedge against inflation, recession, and, in this case, tariffs pressure within sectors and industries. As recessionary concerns, monetary policy, and overall fear continue to create chaos in the markets, the Consumer Staples sector (XLP) has been resilient, especially year-to-date (+5%) compared to the S&P 500, which is up less than 1% YTD.
Consumer Staples Sector vs. S&P 500 YTD Performance (Seeking Alpha (Market data as of 5/30/25))
With geopolitical concerns affecting the world, many companies have experienced volatility as we approach mid-year. That’s why we’re focusing our attention on fundamentally strong stocks to invest in for the summer and highlighting three top Quant Strong Buy-rated stocks that offer strong performance seasonally.
1. Carnival Corporation & plc (CCL)
- Market Capitalization: $30.05B
- Quant Rating: Strong Buy
- Quant Sector Ranking (as of 5/30/2025): 19 out of 474
- Quant Industry Ranking (as of 5/30/2025): 1 out of 32
Carnival Corporation & plc is the current #1 Quant-Rated company in its industry: Hotels, Resorts, and Cruise Lines. Showcasing strong seasonality in the summer months, particularly July and during the holiday season in November and December, Carnival’s momentum has outperformed sector peers on a quarterly basis.
CCL Stock Seasonality Chart
CCL Stock Seasonality Chart (Seeking Alpha)
Although macro and geopolitical impacts on the job market, tariffs, and global economic conditions could impact CCL, Carnival’s strong fundamentals led to consecutively topping earnings and revenue estimates nine times.
CCL Stock EPS Surprise & Estimates (Seeking Alpha)
Carnival is up an incredible +50% in the last year and has been a member of the Alpha Picks portfolio since November 1, 2024. Its cost-cutting initiatives, updated marketing strategy focused on customer experience, and leveraging digital platforms and partnerships have increased bookings. For its latest Q1 Non-GAAP EPS of $0.13, CCL beat by $0.11 and topped Revenue of $5.81B by over 7% Y/Y. Given the company’s strong outlook, adjusted net income guidance for 2025 is anticipated to be +30% compared to 2024 and better than December guidance by $185 million on improved revenue and interest expense expectations.
“Our first quarter was truly characterized by outperformance. This was across the board and led by incredibly strong demand throughout our portfolio including exceptional close-in demand that exceeded expectations for both ticket prices and onboard spending,” said Carnival CEO Josh Weinstein. “While we are not completely immune from the heightened macroeconomic and geopolitical volatility since providing our December guidance, we are still taking up our earnings expectations for the year and we remain on track to have another stellar year across our cruise brands.”
In addition to fleet enhancements, CCL’s operational efficiencies and cost control measures have improved margins, positioning it favorably for summer travel and leisure. Over the last year, the consumer discretionary sector has been one of the top-performing, and as Carnival continues to trade at a -23% discount in terms of its FWD P/E, and more than a 94% discount in terms of trailing PEG ratio, exceptional value paired with strong forward-looking growth trajectory presents investors with a unique opportunity to capture potential gains.
2. Anheuser-Busch InBev SA/NV (BUD)
- Market Capitalization: $138.91B
- Quant Rating: Strong Buy
- Quant Sector Ranking (as of 5/30/2025): 11 out of 178
- Quant Industry Ranking (as of 5/30/2025): 2 out of 7
Employing over 18,000 people and serving millions across the world, Anheuser-Busch InBev is a global producer, distributor, and exporter of beer and “beyond beer” products. Offering a vast portfolio of beverages, including iconic brands like Budweiser, Corona, Michelob ULTRA, Stella Artois, BUD has shown remarkable strength in its global beer portfolio, reporting a Q1 2025 EPS of $0.81, beating by $0.08.
Despite missing estimates for Q1 revenue, BUD’s global momentum, which includes non-alcohol beer revenue +34% for the quarter, has helped its expansion. In Q1, BUD saw EBITDA growth of +7.9% and EBITDA Margin expansion of 218 bps, and its BEES Marketplace continues to scale with GMV +53% to $645M.
BUD Stock Seasonality Chart
BUD Stock Seasonality Chart (Seeking Alpha)
Showcasing relatively consistent seasonality throughout the year, BUD’s peak month is March, attributed in part to St. Patrick’s Day activities and March Madness basketball. But the summer months of May, June, and July showcase strength.
Strategic price adjustments and premium brand offerings drive the brand’s diversified geographic footprint. The company’s ongoing investment in emerging markets such as China and Brazil has enhanced its distribution network and market penetration. As part of its commitment to sustainability, BUD’s initiatives in water stewardship and renewable energy have been instrumental in reducing operational costs and boosting its long-term growth prospects. In May, Goldman Sachs upgraded the stock with a bull rating, supported by macro tailwinds from debt reduction, as underappreciated by the consensus. Analyst Olivier Nicolaï stated that BUD has the potential to return to its top-tier status in the “Fast-Moving Consumer Goods” part of the business.
“Thanks to its global footprint tilted toward EM (60% of group sales) we forecast 1.2% volume growth assuming that the US drag is moderating and China recovers. This should lead to +4.5% organic sales growth in the mid-term with price/mix underpinned by its solid brand portfolio led by Corona. We believe ABInBev is able to reach 7% organic EBITDA growth, towards the top end of its guidance of 4% to 8%.”
However, where tariff impacts on Mexico could pose headwinds, in addition to BUD investing $300M in US manufacturing expansion, the beverage company also announced plans to invest $3.6B through its Grupo Modelo business in Mexico. Mexican President Claudia Sheinbaum confirmed that this investment will focus on modernizing infrastructure and upgrading facilities while providing credit to nearly 1,300 stores that stock AB InBev brands. Anheuser-Busch VP of legal & corporate affairs for the Middle Americas region, Raúl Escalante, said, “We stand with Mexico, like good friends: in the good times and the bad. For example, during the pandemic, we collaborated with the government to rehabilitate hospitals, which are essential for serving the population,” which has experienced strong revenue growth and margin expansion that drove double-digit bottom-line growth for Q1.
Mexico contributes to BUD’s revenue growth despite tariff uncertainty.
Mexico contributes to BUD’s revenue growth (BUD Q1 2025 Investor Presentation)
In addition to maintaining momentum, BUD continues to trade at a relative discount. Offering nearly a -25% difference to the sector on forward PEG Non-GAAP, and sporting attractive Price/Book and EV/EBIT figures, if you like Anheuser-Busch’s fundamentals and discounted valuation, this BUD may be for you. If not, my final stock selection offers a perfect complement for drinking responsibly: a transportation services company to get you home, and deliver food to your doorstep.
3. UBER Technologies, Inc. (UBER)
- Market Capitalization: $175.99B
- Quant Rating: Strong Buy
- Quant Sector Ranking (as of 5/30/2025): 5 out of 615
- Quant Industry Ranking (as of 5/30/2025): 1 out of 8
Rideshare pioneer UBER Technologies was launched in 2009, and has grown from a disruptive ride-hailing application startup to a global multiservice provider of food and grocery delivery, and freight logistics. Significant market rotations have occurred this year. According to Paul Ciana, head of FICC technical strategy at Bank of America Research, the Industrial Sector (XLI) has demonstrated a relative breakout to outperform broader market recovery, and highlighted UBER, which carries the second-largest weight in the industrials index. “Uber’s 18-month trading range has broken bullishly,” Ciana said, showing technical indicators that could support price targets of $101.50-113.60.
Industrials are demonstrating a relative breakout to the broader market.
Industrials are demonstrating a relative breakout to the broader market. (BofA Global Research, Bloomberg, Relative Rotation Graphs)
Uber’s exceptional performance in the mobility and delivery segments can be attributed to its innovative platform and strategic expansions, such as the acquisition of local ride-hailing platforms in Southeast Asia. Q1 FY2025 saw strong growth in gross bookings, bolstered by its global footprint and increasing demand for ridesharing and food delivery services. Uber has also focused on diversifying revenue streams with initiatives like Freight and advertising solutions, reinforcing its position as a leading player in the shared economy and tech industry.
UBER Stock Seasonality Chart
UBER Stock Seasonality Chart (Seeking Alpha)
From a seasonality perspective, the colder months reflect Uber’s highest uptick. However, Uber has been consistent throughout the year and rallied to a new all-time high of $93.60 following its product event in May. Uber’s focus on innovation and core operations that rely on independent couriers hired from their respective local markets has contributed to its $8B cash hoard. In Q1, monthly active consumption was up 14%, while bookings climbed 18%, aiding its record adjusted EBITDA, which was 35% higher year over year.
UBER Stock Profitability Grades
UBER Stock Profitability Grades (Seeking Alpha)
Investing heavily in autonomous vehicles, rival Tesla’s (TSLA) robotaxi launch in Austin, TX, heats up the autonomous race. UBER has been solidifying partnerships with Google’s (GOOG) (GOOGL) Waymo, Pony AI (PONY), Momenta, and May Mobility, for its initial launch of autonomous vehicles on the Uber platform in Arlington, Texas at the end of this year. Uber’s progress has fueled optimism for the stock, which is +40% YTD, while securing 39 FY1 up revisions in the last 90 days.
UBER Stock Revisions Grades (Seeking Alpha)
Despite rallying to a new all-time high, UBER trades in line with its sector, while offering an attractive forward PEG ratio of 1.02x vs. the sector’s 1.73x. Offering no shortage of innovation, a strong global footprint with diversified offerings and bookings throughout the year – a tariff-resistant play. Consider Uber for a portfolio this summer, which offers strong fundamentals and excellent growth prospects.
Conclusion
Summer is upon us, and a great opportunity for a portfolio is to capitalize on companies that experience consistent growth and strong seasonal patterns while also showcasing strong fundamentals to weather tariff heat.
As tariff uncertainty persists, companies like CCL, BUD, and UBER have been resilient, have adapted their strategies to capture global market share, while also strategizing about where to invest capital and cut costs. Amid economic uncertainty, many investors are looking for profitable companies that can deliver value and growth. Looking forward, as investors seek companies that can weather increasing inflation and tariff turmoil, consider using our Quant screeners to help you find superior stocks in every corner of the markets, including our selection of High-Yield Dividend Stocks for those seeking income-producing investments to fend off inflation and tariffs. Alternatively, if you’re looking for a select number of Quant Strong Buy recommendations on a monthly basis, consider joining our Alpha Picks community.
- I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.
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