Seasonality Says Buy the Dip on This Blue Chip

FAANG concerns have AXP shares lower, but history suggests the credit card stock could bounce

Mar 25, 2019 at 2:39 PM
facebook twitter linkedin

The S&P 500 Index (SPX) is on pace to end March with a modest 0.4% gain, which would mark the index's third straight month in the black. Looking ahead, April tends to bode well for Wall Street, with the SPDR S&P 500 ETF Trust (SPY) -- an exchange-traded fund (ETF) that mimics the S&P 500 -- ending the month higher nine of the past 10 years. Below, we take a look at individual stocks that tend to shine in April, including blue chip American Express Company (NYSE:AXP), which is down today on FAANG competition fears.

Here are the 25 top SPX stocks to own in April, looking back 10 years. To make the list -- cultivated by Schaeffer's Senior Quantitative Analyst Rocky White -- stocks had to have at least eight years' worth of returns.

best april stocks

American Express stock has averaged an April gain of nearly 12% in the past decade -- the second-highest average return on the list above. Further, AXP has ended the month higher 80% of the time.

Today, the Dow stock is down 0.9% at $108.51, after Apple (AAPL) unveiled a new credit card. The security just last week peaked at $114.25 -- within a point of its Dec. 3 all-time high of $114.55. Even with the recent pullback, AXP has added more than 21% in the past three months. Another 12% April rally from current levels would put the credit card concern around $121.53 -- well into uncharted territory.

AXP stock chart March 25

Should American Express once again outperform next month, a round of upbeat analyst attention could add fuel to the security's fire. Despite its stellar 2019 performance thus far, the majority of analysts following AXP maintain tepid "hold" ratings. Further, the consensus 12-month price target of $117.70 represents expected upside of just 8.4% to the stock's current perch, leaving the door open for potential price-target hikes to lure more buyers to the table.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners