June's historical average return comes out at just 0.1% while July typically sees a 1.2% gain, according to Stovall.
Summer exception This summer could prove to be an exception to the typical summer lull, given the upcoming presidential election, Stovall said, noting that the broad market index has posted an average 3.7% summer increase during the 19 election years since World War II.
Ahead of this year's election, Stovall expects a few aerospace and defense contractors to stand out.
Other areas of the market that should survive and thrive during a slow summer period are consumer staples companies, tobacco names, health-care distributors and pharmaceuticals, Stovall said.
Costco and Walmart shares are up roughly 29% and 2% this year, respectively, posting strong returns as consumers have become more motivated by price and value in a high-inflation environment.
Persons:
Sam Stovall, Stovall, CFRA, Eli Lilly, Lockheed Martin, Morgan Stanley, Becton Dickinson, Christopher Horvers, FactSet
Organizations:
Day, Labor, Walmart, Lockheed, Dynamics, Republicans, Costco, JPMorgan