2 Blue Chips That Could Start 2018 With a Bang

GS and BA stocks tend to rally the week of New Year's Day

Dec 26, 2017 at 10:50 AM
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It's hard to believe that we have less than a week left in 2017, yet here we are. While the past year has been a bit rocky politically, it's been a banner year for the U.S. stock market. What's more, below we've listed 25 stocks that could start 2018 with a bang, if past is prologue, including two blue chips: Goldman Sachs Group Inc (NYSE:GS) and Boeing Inc (NYSE:BA). Let's take a closer look at GS and BA stocks, as well as the other equities that could outperform next week.

Best Stocks to Own Week of New Year's

The 25 S&P 500 Index (SPX) stocks below have been the best to own during the week of New Year's Day over the past 10 years, according to Schaeffer's Senior Quantitative Analyst Rocky White. To make the list, the equities had to have at least eight years of returns. As alluded to earlier, Goldman Sachs and Boeing were the only Dow stocks to make the cut.

best stocks new years week

Goldman Stock Could Notch Fresh Record Highs

GS stock has ended the week of New Year's Day higher seven of the past 10 years, averaging a healthy gain of 2.39%. The shares on Friday notched a record high of $262.14, but have taken a breather today, down 0.6% to trade at $257.28. Another 2.39% rally from current levels next week would place Goldman shares around $263.43 -- in uncharted territory.

Beyond next week, GS stock could extend its journey higher as bears hit the bricks. Just eight of 18 analysts offer up "buy" or better ratings on the outperformer, leaving the door wide open for potential upgrades. Meanwhile, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.52 is higher than 98% of all other readings from the past year, suggesting near-term options players have rarely been more put-biased during the past 12 months. Likewise, short interest surged 38.5% in the past two reporting periods. An exodus of bears could add fuel to Goldman stock's fire.

Boeing Stock Could Barrel Past $300

BA stock, meanwhile, has also ended the week of New Year's Day higher seven of the past 10 years, averaging a gain of 1.38%. The shares have already skyrocketed more than 90% so far in 2017, and are on pace for their best year ever. At last check, Boeing shares were 0.7% higher at $297.12; another 1.38% gain next week would place the security around $301.22 -- above $300 for the very first time.

As with GS, Boeing shares still have quite a few skeptics. In fact, seven of 16 analysts following the red-hot Dow stock maintain tepid "hold" opinions, which leaves room for future upgrades to lure more buyers to the table.

Traders expecting more short-term upside for Boeing stock should also note its Schaeffer's Volatility Scorecard (SVS) of 92. This lofty reading indicates the shares have handily exceeded options traders' volatility expectations during the past year -- a boon for premium buyers.


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