25 Stocks to Avoid Next Month

Plus, 25 of the worst performing stocks in February, historically

by Patrick Martin

Published on Jan 29, 2020 at 1:16 PM
Updated on Jun 24, 2020 at 10:16 AM

Casino stocks have taken a hit recently, as the coronavirus outbreak disrupts Macau's gambling operations. While MGM Resorts International (NYSE:MGM) is up 1.9% to trade at $31.56 today, things won't get easier for the casino stock in February. That's because MGM showed up on a list of the worst S&P 500 stocks to own in February over the past 10 years, compiled by Schaeffer's Senior Quantitative Analyst Rocky White. MGM is also the only travel/leisure stock to show up on the list.

More specifically, looking back over the last decade, MGM stock averages a February loss of 1.2%, with only three out of 10 returns positive. That's ninth worst on the list, and tied for worst when looking at the percent positive column.

Worst February Stocks

Things were looking great for MGM as of Jan. 17, with the stock fresh off an annual high of $34.63. But with the coronavirus spreading like wildfire, the shares have collapsed, shedding almost 9% since then. On Monday closed below the security closed below its 100-day moving average for the first time since Oct. 25. 

Daily Stock Chart MGM

This has led to an increased interest in put options. The 10-day put/call volume ratio of 1.37 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the elevated 84th percentile of its annual range, suggesting that puts have been bought to open at a much quicker clip relative to calls than what's normally seen.


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