The 25 Worst Stocks to Own in July

MRO recently broke below a key trendline

Deputy Editor
Jun 29, 2022 at 3:34 PM
facebook twitter linkedin

It's been a rocky time on Wall Street lately, and the first half of 2022 certainly posed a challenge for investors. As we start getting into the second part of the year, it's a good idea to keep an eye on stocks that half had a tendency to underperform in July. For your convenience, we have compiled a list of the worst stocks to own during this time, with Marathon Oil Corp (NYSE:MRO) standing out amongst them. 

Worst Of July 2022

According to Schaeffer's Senior Quantitative Analyst Rocky White, Marathon Oil stock averaged a July loss of 4.6% over the past 10 years, finishing the month positive only four of these times. Oil & gas stocks are all over this list, historically, even without the recent pressure from the government due to rising fuel costs. 

Today, MRO is down 4.8% to trade at $22.97, and facing pressure at the 120-day moving average, after recently breaking below it for the first time since September 2021. Year-to-date, the equity is still up 40.1%, but has been on its way lower. 

MRO June29


Options traders have been betting on a move higher, and an unwinding of this optimism could provide headwinds. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), MRO's 10-day call/put volume ratio of 5.33 ranks in the elevated 85th percentile of its annual range, showing a heavy penchant for calls lately. 

 A round of downgrades could send the stock lower, too. Of the 16 analysts in coverage, 13 carry a "strong buy" rating. Plus, the 12-month consensus price target of $34.12 is a 48.6% premium to current levels. 


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners