Welcome to Extreme Investor Network, where we provide you with unique insights and expert analysis on the world of investing. Today, we are diving into the often turbulent month of September and uncovering some hidden gems that may help investors navigate the rough waters.
September is notorious for being the worst month of the year for equities, but there are a few companies that have historically thrived during this challenging period. According to the Stock Trader’s Almanac, the S & P 500, Dow Industrials, Nasdaq Composite, and Russell 2000 have all seen significant drops in the last four Septembers. This year, with the added uncertainty of the upcoming U.S. presidential election, investors need to be extra cautious.
Using FactSet data, we have identified some standout performers in September from the S & P 500. Companies like Bath & Body Works, Southwest Airlines, and Palo Alto Networks have shown resilience during this traditionally tough month. Bath & Body Works, known for its fragrances, has had the highest median performance, with an average gain of 6.16% in each of the past 10 Septembers. Despite recent struggles, analysts see more than 38% potential upside for the retailer.
Southwest Airlines, based in Dallas, has an average gain of 3.27% in September over the past decade. Analysts are optimistic about the airline’s future prospects, with Evercore ISI recently upgrading the stock to outperform. Meanwhile, Palo Alto Networks, a cybersecurity provider, has seen an average gain of 2% in Septembers over the last 10 years. The company’s recent strong financial performance has led to several Wall Street firms raising their price targets.
On the flip side, some companies have historically struggled in September. Incyte, a developer of cancer treatments, and Zebra Technologies, a mobile computing company, have seen the worst median performance over the past 10 years, each losing an average of more than 8% during the month. Despite this, Wolfe Research analyst Rob Ginsberg believes Incyte stock is “on the cusp of breaking out” and recommended the stock.
As we navigate the uncertainties of September and look towards the future, it’s crucial for investors to stay informed and seek out opportunities that can weather the storm. Stay tuned to Extreme Investor Network for more valuable insights and expert analysis on the world of investing.