Welcome to Extreme Investor Network, where we provide unique and valuable insights into the world of investing. October is known to be a volatile month for the market, but there are certain stocks that offer stability for investors during turbulent times. Since 1950, the S&P 500 has seen an average daily move of 1.3% in October, making it one of the stormiest months for stocks.
To help investors navigate through the volatility, CNBC Pro has identified some safe-haven stocks that meet specific criteria for stability. These stocks have a low volatility with a 3-year Beta of less than 1, a median gain of 3% or more over the past 10 Octobers, and have not lost more than 1.5% in any of the past 10 Octobers.
Among the top five stocks that made the cut, power companies dominate the list. Companies like NextEra Energy, FirstEnergy, American Electric Power, and PPL have shown stability and consistent gains over the years. These stocks have a median gain of 3.5% or more over the past 10 Octobers and have low beta values, indicating lower volatility.
NextEra Energy, for example, has rallied nearly 39% year to date and is rated a buy or strong buy by two-thirds of analysts. Meanwhile, FirstEnergy and American Electric Power have also seen significant gains this year, with analysts bullish on their future prospects.
In addition to power companies, Truist Financial stands out as the only non-utility name on the list. The bank has a median gain of 3.66% over the past 10 Octobers and has shown stability with a beta value of 0.81. Analysts see more than 9% upside potential for Truist Financial from its current price.
As investors brace for the volatility that October brings, these safe-haven stocks provide a sense of calm and stability in an unpredictable market. Stay tuned to Extreme Investor Network for more expert insights and investment opportunities.