Stocks to Short Before September

PCG and AIG stocks could slump next month, if past is prologue

Aug 29, 2018 at 2:18 PM
facebook X logo linkedin


The month of September has historically been rough for the S&P 500 Index (SPX). While these 25 stocks tend to buck the broad-market trend lower, below is a list of stocks that tend to struggle in the month. Among them are utilities provider PG&E Corporation (NYSE:PCG) and insurance issue American International Group Inc (NYSE:AIG).

Looking back 10 years, the 25 stocks below have averaged the worst monthly returns in September. PCG is the only stock on the list that's finished the month higher just 10% of the time, averaging a loss of 1.65%, per Schaeffer's Senior Quantitative Analyst Rocky White. AIG stock, meanwhile, has racked up the second-highest average monthly loss, dropping 9.39%, and finishing September higher just 30% of the time.

worst september stocks

PCG Stock Running Into Familiar Ceiling

PG&E shares are higher today, after Guggenheim upgraded the stock to "neutral" from "sell," and hiked its price target to $50 from $35. The analyst is optimistic about a legislative proposal that includes the opportunity to recover California wildfire costs via securitization bonds. At last check, PCG is up 1.4% to trade at $46.29.

From a longer-term perspective, the equity gapped lower in late December after the company suspended its dividend in the wake of the wildfires. Since then, the stock has bounced around between $38 and $48, and is at the upper end of that range currently. Another dose of seasonal headwinds could have PCG stock backpedaling in the face of a familiar ceiling.

PCG stock chart aug 29

New Lows in Store for AIG in September?

American International Group stock has been chopping lower for most of 2018, surrendering more than 9% so far year-to-date. More recently, AIG shares have run into a wall in the $54-$54.50 neighborhood -- where the security was trading before an early August post-earnings bear gap. Beyond that, the $55-$56 region has contained breakout attempts since a bear gap in early May. At last check, AIG was fractionally lower at $54. Another 9.39% drop next month would put the equity south of its May 3 annual low of $49.57.

AIG stock chart aug 29

Despite AIG's struggles, the majority of analysts still recommend buying it, and the average 12-month price target among this group represents a 15% premium to current levels. A round of overdue downgrades and/or price-target cuts could exacerbate seasonal headwinds.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI