Natural gas concerns WMB and PXD could outperform, if history repeats
It's hard to believe we're already closing in on Easter (likely because it still feels very much like winter here in Cincinnati), yet here we are. Looking ahead to April and the second quarter, we've outlined 50 stocks that could be flashing seasonal "buy" signals right now, if past is prologue. On the lists, a couple of energy stocks caught our attention: Williams Companies Inc (NYSE:WMB) and Pioneer Natural Resources (NYSE:PXD).
Best Stocks to Own in April
Williams Companies stock has been the best S&P 500 Index (SPX) member to own in the month of April, looking back 10 years (and excluding stocks with fewer than eight returns). WMB shares have ended higher 100% of the time, averaging a healthy monthly gain of 8.17%, per data from Schaeffer's Senior Quantitative Analyst Rocky White.
WMB stock has struggled of late. Since touching a two-year high of $33.67 on Jan. 24, the equity has surrendered roughly 24% beneath its 10-day and 20-day moving averages. In fact, the equity touched an annual low of $24.76 just last week, but was last seen trading at $25.68. Should the security enjoy another 8.17% pop next month, Williams Companies shares would be trading at $27.78 -- breaking north of the aforementioned trendlines, and back above support in the $27-$27.75 region, which has contained several pullbacks since late 2016.
Best Stocks to Own in Q2
Meanwhile, Pioneer Resources is one of only a handful of SPX stocks to boast a 100% win rate in the second quarter, looking back 10 years. The oil-and-gas concern has averaged a second-quarter gain of 11.58%, according to White.
The equity surged more than 50% off its late-August lows to flirt with $190 by late January. After that, however, PXD stock pulled back to the $165 level -- a roughly 38.2% Fibonacci retracement of the aforementioned rally -- and bounced. The stock is now trading around $173.53 -- down 1% today, after Pioneer Resources announced plans to sell its Eagle Ford shale assets for $102 million. Another 11.58% bump in the second quarter would put PXD shares around $193.62 -- back above their formerly supportive 50-day moving average, and into annual-high territory.
