Stay Away from These Stocks in September

MPC stock has averaged the steepest loss of all eligible SPX components

Aug 30, 2019 at 11:15 AM
facebook X logo linkedin


We recently outlined the 25 best stocks to own in September, historically, with Southwest Airlines (LUV) enjoying some of the best returns over the past decade. Today, however, we're taking a look at the stocks that tend to slide in September, with oil-and-gas concern Marathon Petroleum Corp (NYSE:MPC) logging the steepest average loss of all eligible S&P 500 Index (SPX) stocks.

Below are the 25 worst stocks to own in September, looking back 10 years, courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. As you can see, MPC has averaged a monthly loss of 5.28%, and has ended September higher just a quarter of the time.

worst stocks september

Marathon Petroleum stock has spent 2019 in a channel of lower highs and lows, with rally attempts stalling around its 120-day moving average. The security touched an annual low of $43.96 earlier this month, and was last seen trading around $49.09. Another 5.28% drop from current levels would put MPC around $46.50 heading into October.

MPC stock chart aug 30

Despite dropping more than 40% over the past year, MPC remains beloved among analysts. In fact, the security has racked up 13 "buy" or better endorsements, compared to just one "hold" and not a single "sell." Meanwhile, the consensus 12-month price target of $77.88 represents a steep 58% premium to current levels. Should MPC extend its downward slump amid seasonal headwinds, a flood of downgrades and price-target reductions could exacerbate selling pressure on the shares.

Options buyers also remain enamored of Marathon Petroleum. The equity sports a 10-day call/put volume ratio of 4.43 on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), meaning traders have bought to open more than four MPC calls for every put in the past two weeks. This ratio is higher than 68% of all other readings from the past year, pointing to a slightly healthier-than-usual appetite for bullish option bets during the past two weeks. An exodus of option bulls could also weigh on the oil stock.

 

 

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