How to Buy Summer Stocks – Top 3 Summer Stocks to Buy Now 2021

Fact Checked by Gary McFarlane

Better weather is right around the corner, and with COVID regulations slowly getting relaxed, it seems we’ll be able to enjoy our next summer more so than the previous couple of years. Along with better weather, the summer brings us exciting opportunities in the stock market. To help you better capitalize on this, we’ll be providing you with the rundown on how to buy summer stocks for beginners, the best brokers, and the best summer stocks. Enjoy! 

#1 Broker to Buy Summer Stocks – eToro

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How to Buy Summer Stocks With eToro – Step by Step Guide 2021

Learning how to use a new trading platform can be a time-consuming task. So to make it a bit easier we included this handy guide explaining exactly how you can get started. If you’re looking for a more detailed guide, you can find that toward the bottom of the article. 

  • Step 1: Open an eToro account: The first thing you’ll need to do is register for an account with eToro. To do this just type “eToro.com” into your browser, press “Join Now” and fill in the required fields. 
  • Step 2: Verify your identity: Because eToro is a regulated broker, you’ll need to verify your identity. This is a simple process and only takes a couple of minutes. All you need to have at hand is a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 
  • Step 3: Fund your account: Once your account has been verified, you’ll need to fund it. Doing so is simple, just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 
  • Step 4: Buy Summer stocks: Now that you’ve deposited some funds into your account, you’re ready to buy a summer stock. To do this just type the name of the asset you’d like to purchase into the eToro search bar, press “Trade”, enter the number of shares you want to buy, and press “Open Trade”. You can manage your investment from the portfolio section of your account. 

Where to Buy Summer Stocks – Top 3 Summer Stock Brokers

If you plan on buying summer stocks, you’ll need to ensure that you’re trading with the best broker possible. If you neglect to research this step, you can easily find yourself locked into a subpar brokerage. So, to prevent that from happening, we’ve broken down some of the best brokers you can buy summer stocks with right now. 

1. eToro – All in All Best Summer Stock Broker USA

eToro is a titan of the investment space. They’ve been operating since 2007 and have managed to accumulate an impressive 20+ million users. eToro has achieved this huge success by providing its users with precisely what they need in order to have a great trading experience. No matter your skill level, you’ll be right at home with eToro. 

Security & Privacy

One of the most important elements of any broker is security, without solid security measures, the chances of a broker getting compromised are much greater. To make sure that doesn’t happen to its users, eToro uses a three-step security system. The first step is regulation, eToro follows rules outlined by the SEC to ensure client information and funds are handled correctly. SSL encryption is then used to obscure sensitive information, preventing it from being usable to hackers. And finally, eToro gives every user the option of enabling 2FA, a system designed to act as a last line of defence in the event of a client account getting compromised. 

Features

One of the world’s largest brokers, eToro is packed full of useful features for traders of every skill level. To help beginners get up to speed, they have an educational platform called eToro Academy, which covers every topic needed to have a successful start to your trading journey. Beginners can also benefit from eToro’s social trading system called “CopyTrading ”. This allows users to automatically mirror the trades of more experienced users, meaning you’re able to learn new strategies, all while earning a passive income. Combine this with eToro’s attractive, commission-free fee structure and it’s easy to see why eToro tops our list of best brokers to buy summer stocks. 

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)

 

Pros

  • Commission-free
  • CopyTrading
  • Regulated
  • SSL-encryption
  • eToro academy
  • 2FA

Cons

  • Could benefit from MetaTrader support

68% of retail investor accounts lose money when trading CFDs with this provider.

2. TD Ameritrade – Alternative Summer Stock Broker USA

As the name would imply, TD Ameritrade is a US-based investment broker that comes equipped with all the features you’d expect from a leading brokerage. They’ve been operating since the 1980s (despite numerous name changes) and have managed to amass more than 11 million users.

Security & Privacy

If you’re wondering how security is at TD Ameritrade, I think you’ll be pleasantly surprised. As with most reputable brokers, TD Ameritrade is regulated by the SEC, meaning you can enjoy increased security on the platform. Worried about TD Ameritrade going into insolvency? Don’t be! They have SIPC insurance covering securities balances up to $500k and cash balances of up to $250k, meaning as long as you hold less than that in your account you’ve got nothing to worry about. Additionally, TD Ameritrade clients can use a “verification phrase” to ensure they’re speaking to a genuine representative of the company. This phrase is unique and gets attached to your account upon creation, making it incredibly hard to fake. 

Features

With a 35+ year track record, it’s no surprise that TD Ameritrade has more advanced features than your average brokerage. They, of course, offer access to a range of markets and order types, standard features on any brokerage worth it’s salt. However, something you don’t see every day is their automatic dividend reinvestment system that allows you to easily increase positions when you receive dividend payments, much like compounding interest. To help ensure frequent traders are well looked after, TD Ameritrade has a dedicated trading platform called thinkorswim that gets updated based on feedback from real users, making it an all-around more user-friendly experience. And to top things off, TD Ameritrade has a 24/7 customer support line and 24/5 technical support, meaning you can always get a prompt answer to any queries you might have. 

TD Ameritrade Fees

Fee Type Fee Amount 
Commision Fee 0% (on US stocks)
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • Regulated
  • SIPC Insurance 
  • User verification phrase 
  • 24/7 phone line / 24/5 tech support
  • Auto dividend reinvestment 
  • thinkorswim 

Cons

  • Could be too complex for some
  • Only able to trade US markets. 

68% of retail investor accounts lose money when trading CFDs with this provider.

3. Robinhood – Simple Summer Stock Trading Platform USA

Since its launch in 2013 Robinhood has had a meteoric rise to fame by providing US residents easy access to the stock market through a mobile app. Clearly, this strategy has worked wonders as the trading platform boasts over 22 million users, an especially impressive feat considering it only operates in the states. 

Security & Privacy

When you’re looking after the funds of more than 22 million people, you need to have some pretty amazing security. Luckily, Robinhood has got this memo as they require authorization from multiple parties to verify any important transactions, making it far more difficult for a transition to be falsely validated. If you’re trading with Robinhood you needn’t worry about them going bankrupt as they’re protected with SIPC insurance, as well as, excess of SIPC, covering balances of up to $10 million. Additionally, Robinhood makes a point of closely following regulations outlined by the SEC in order to better project investors. 

Features

It’s no secret that Robinhood caters primarily to beginners, this is clear from the second you log into the app. Despite this, however, Robinhood has managed to pack an impressive amount of features into its platform. Robinhood users have access to basic trading features like limit orders and some basic charting capabilities. A fairly unique feature from Robinhood is their cashback system that allows users to earn money back on everyday purchases, always a nice bonus. However, Robinhood is somewhat let down by its lack of a desktop trading platform, which will certainly alienate a portion of its potential user base.

Robinhood Fees

Fee Type Amount
Trading Fee 0%
Credit/Debit Card Fee 3.99%
Spread Fee Variable

 

Pros

  • Regulated
  • SIPC insurance
  • Excess of SIPC insurance
  • Mutlisig transactions
  • Simple
  • Cashback

Cons

  • Overly basic 
  • Missing most advanced tools

68% of retail investor accounts lose money when trading CFDs with this provider.

Buy Summer Stocks – Broker Price Comparison

To make it easier for our readers to understand how each broker stacks up against one another, we’ve included this handy table comparing the fee structure of each broker. 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
TD Ameritrade 0% (on US stocks) $0 $0 $0
Robinhood $0 on trades of <50 shares. Up to $5.95 on trades over 50 shares  $0 $0 $0

Top 3 Best Summer Stocks USA

Now that we’ve discussed some of the best brokers to buy summer stocks, it’s only right we give you the low-down on some of the best summer stocks you can buy right now. 

Dick’s Sporting Goods Inc. (DKS)

Dick’s Sporting Goods (DKS)  has been the go-to sporting goods store for Americans for years. They’re headquartered in Pennsylvania but have over 800 stores spread across the US. They’ve been operating since the 1940s and in that time have managed to become the largest sporting goods chain in the US. 

Advantages

Dick’s Sporting Goods has been going parabolic this year, with gains of more than 100%. As such, many investors are flocking to buy this summer stock before prices continue to climb. To help our readers decide if this is the best summer stock for their investment goals, we’ve broken down some of the advantages of buying DKS stock below. 

Athletics: Buying summer stocks during winter can be an excellent technique to bag yourself some bargains before their big run-up happens as the weather starts to get warmer. Dick’s Sporting Goods offers a plethora of athletics products, covering just about every sport you can imagine. In early 2021, they begun testing out a new concept where they integrate sports areas with their stores. Their Knoxville store comes complete with a 24,000-square-foot track and field, giving their target audience even more reason to make the trip, in turn increasing revenue as customers that came to use the sports facilities are likely to buy themselves some sports equipment. 

Massive Growth: Over the past year-to-date (YTD) Dick’s Sporting Goods has risen dramatically from just below $60 all the way to $127, an increase of more than 100%. As of current, Dick’s Sporting Goods is showing no signs of slowing down, so it could be an excellent time to buy this summer stock before prices increase further. 

Better Than Expected Earnings: Every quarter, companies release earnings reports for investors and analysts to look through and decide if the stock is still performing as they’d expect. Before this happens, analysts create expectations of the performance of the stock to gauge how well they’re doing. Recently (Oct. 30th), Dick’s Sporting Goods released their Q3 report, which shows they beat revenue expectations by almost $700,000,000 and earnings per share (EPS) expectations by $1.13. Both of these results indicate bullish momentum for Dick’s. 

Disadvantages

While Dick’s Sporting Goods has been performing well over the past year, that doesn’t mean there are no issues on the horizon. So, to help you better understand the risks of buying DKS, we’ve broken down a potential issue investors could face if they buy DKS stock. 

Rapid Growth: While this massive price increase is, of course, good for Dick’s as a whole, it could also be a sign the stock is due for a correction. Typically when a stock grows rapidly and forms new all-time-highs its value gets inflated by investors trying to get a piece of the pie before prices increase. Which can in turn result in a massive sell-off as the stock becomes overvalued, causing a decrease in price. 

Tractor Supply Co. (TSCO)

Tractor Supply Co. (TSCO) is a Brentwood-based retailer offering home improvement, agricultural, and lawn care products. They are the biggest retail farm chain in the US, boasting more than 1,900 stores across 49 states. The fundamentals seem positive for Tractor Supply Co. but to help you decide whether it’s the best summer stock right now, we’ve broken down some pros and cons below. 

Advantages

Tractor Supply Co. is the largest retail farm chain in the US and with sales consistently increasing year-by-year it could be a great time to add this stock to your portfolio. Here are a few reasons why Tractor Supply Co. is a solid buy. 

Institutional Investment: The phrase “follow the money” rings true for investors looking to buy Tractor Supply Co. Stock. If we take a look at who owns shares in the company, it becomes clear that institutions are betting big on Tractor Supply Co. While the general public owns just 11.5% of the stock, institutions own 88%. While institutions can get things wrong, they have access to teams of analysts and information the public doesn’t. Meaning, it can be a good idea to closely follow a stock if institutional money is flowing in. 

Growing Steadily: Over the past year, the share price of Tractor Supply Co. has been steadily increasing, rising from $125 to $225, an increase of 80%. If we zoom out further and take a look at its value over the past 5-years the same remains true. During 2016 it was trading between $50-$70, however, once 2017 hit, the stock grew steadily up to its current valuation. This is a sign the company is growing naturally and reinvesting back into the business, both big pluses. 

Disadvantages

No matter how great a company seems on paper, it’s always worth analyzing the cons of buying a stock before parting with your hard-earned funds. To give you an idea of some of the issues investors may run into when buying this summer stock, we’ve broken down a potential negative below. 

Pandemic Earnings: Tractor Supply Co. creates products for the home improvement, agriculture, and lawn care sectors. Because of this, as people moved back out of the suburbs and began spending more time at home during the pandemic, Tractor Supply Co’s sales boomed, increasing by 42.4% compared to the previous year. Now that things are slowly returning to normality, we might see a slight drop-off in sales, resulting in lesser earnings. This, of course, wouldn’t be ideal for the home/agricultural supplies company, however, only time will tell how severe this drop-off will be. 

Southwest Airlines Co. (LUV)

Southwest Airlines Co. (LUV) is a US-based air travel company. They’re one of the biggest airlines in the US and the largest low-cost airline in the world. An important thing to note, especially during these trying times is that Southwest is the number one domestic airline in the US, helping it recover quickly from any losses incurred due to the pandemic. 

Advantages

Despite a rough couple of years due to the pandemic, Southwest Airlines is beginning to rebound. So, here are a couple of reasons why it might be a good idea to add some LUV to your portfolio. 

Domestic Flights: Airlines have been hit hard by the pandemic. Even now, in November 2021, international flights are still limited and travel restricted. Luckily, for Southwest Airlines, however, they’re a leading airline for domestic travel. They have flights going to 103 US destinations, meaning there’s no shortage of locations for flyers to travel within the US. 

Pent Up Travel: Because many people were left stuck at home during the pandemic, airlines are expecting a big surge in customers as restrictions get lifted and mandatory isolation stopped. This will in turn generate a large amount of revenue for airlines, helping bolster stock prices. 

Disadvantages

Airline companies have been hit especially hard by the pandemic, with almost every company falling in value in the past couple of years. Here’s a reason why buying Southwest Airlines’s stock might be a risky endeavor. 

International Travel: Southwest Airlines’ debt-to-equity ratio has risen dramatically over the pandemic, shooting up from 0.25 to 1.07. While this is to be expected from a company that relies on international travel to generate revenue, it’s not a great statistic. Southwest needs to hope international travel restrictions are relaxed soon if they want to get off to a successful start in 2022.   

How to Buy Summer Stocks with eToro

When you’re new to a platform, learning how to buy stock can be annoying and time-consuming. So, to help streamline the process, we included this guide detailing precisely how to buy summer stocks for beginners. 

Step 1: Open an account with eToro

Before you can buy a summer stock, you’ll first need to create an account with a reputable broker. We recommend eToro as they offer an excellent blend of security, powerful features, and simplicity. To register just type “eToro.com” into your browser, press “Join Now” and fill in the form. 

68% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

Once you’ve created your eToro account, you’ll need to verify it. This is because eToro is a regulated broker and has to comply with anti-money-laundering regulations. Luckily, the verification process is quick and easy. The only documents you’ll need are a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 

Step 3: Fund your account

After you’ve verified your account, you’re only one step away from buying summer stock. However, you’ll first need to deposit some funds. To do this just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 

Step 4: Buy Summer Stocks!

As soon as the funds land in your eToro account, you’re ready to buy your first stock! Just type the name of the asset you’d like to purchase into the eToro search bar, press “Trade”, enter the number of shares you want to buy, and press “Deposit”. You can view and manage your position from the portfolio section of your account. 

Conclusion

While summertime provides us with excellent weather, it also results in a huge number of opportunities in the stock market. Typically, stocks that relate to travel or outdoor activities tend to quickly rise once warmer weather comes about. This can result in great earning opportunities for the properly prepared. If you want to get prepared to take advantage of this amazing opportunity and buy summer stocks, you’ll need to register with a top-rated broker, like eToro. We can wholeheartedly recommend eToro after analyzing the pros and cons of hundreds of different brokers. None can quite compare to the features, security, and simplicity offered by eToro. 

eToro – Best Broker to Buy Summer Stocks

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

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About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.