October's Worst Stock Might Surprise You

AMD has averaged a steep October loss over the past 10 years

by Andrea Kramer

Published on Sep 26, 2018 at 12:40 PM

Chip stock Advanced Micro Devices, Inc. (NASDAQ:AMD) has more than tripled in the past six months, and could get a short-term boost after today's Fed rate hike, if recent history is any indicator. However, the shares could retreat heading into 2019, as AMD tends to struggle both in the month of October and in the fourth quarter.

Below are the 25 worst stocks to own in October and the fourth quarter, respectively, looking back 10 years. Per Schaeffer's Senior Quantitative Analyst Rocky White, AMD stock has ended the month lower 60% of the time, with an average loss of 8.95% -- the steepest on the list. Meanwhile, AMD has surrendered an average of 7.03% in the fourth quarter, ending higher just 30% of the time.

worst october stocks

worst stocks Q4

As alluded to earlier, Advanced Micro Devices stock has been a standout in 2018, rallying 210% year-to-date. The security touched a fresh 12-year high of $34.14 on Sept. 13, but was last seen down 1.4% to trade at $32.13. Heading into today's session, the chip stock sported a 14-day Relative Strength Index (RSI) of 72 -- in overbought territory, suggesting today's breather may have been in the cards. Another 8.95% slide in October would put AMD shares around $29.24.

AMD stock chart sept 26

In conclusion, while AMD tends to get a boost after Fed rate hikes, the momentum could be short-lived, if past is prologue. The equity tends to suffer both in the month of October and in the fourth quarter of the year. Speculators hunting for short-term bullish plays could consider these airline stocks instead.

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