25 of the Best Stocks to Own in September

CF stock could pop in September, if past is prologue

Deputy Editor
Aug 30, 2022 at 12:48 PM
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It's time to take a look at the 25 best stocks to own in September, historically. The only member of the chemicals sector on the list, fertilizer manufacturer CF Industries Holdings, Inc. (NYSE:CF), was last seen down 6.3% to trade at $106.24 and boasting a compelling entry point. Since hitting an all-time high of $119.60 on Aug. 26, CF Industries stock has pulled back slightly to fall back below a familiar ceiling at the $110 level. Today's negative price action, however, is being contained by the equity's 20-day moving average, and CF maintains an impressive 504% year-to-date lead.

CF Chart August 30

Below are the best S&P 500 Index (SPX) stocks to own in the month of September, looking back 10 years. The list -- cultivated by Schaeffer's Senior Quantitative Analyst Rocky White -- considers only SPX stocks with at least 10 years' worth of historical returns. CF has ended the month higher 70% of the time. What's more, the security's average monthly return of 4.4% is one of the best.

Best of September Chart August 30

An unwinding of pessimism in the options pits could have bullish implications. This is per CF Industries stock's Schaeffer's put/call open interest ratio of 0.86, which stands higher than 96% of readings from the past year.

Options are an attractive route at the moment, per CF's Schaeffer's Volatility Scorecard (SVS), which ranks high with a score of 90 out of 100. Simply put, the security has consistently realized bigger returns than options traders have priced in.

A further shift in sentiment amongst the brokerage bunch could send the shares higher still. Digging deeper, while six analysts rate CF Industries stock a "strong buy," the other six still recommend a tepid "hold." What's more, the 12-month consensus target price of $111.55 is a slim 4.9% premium to the shares' current level of trading. In other words, there's ample room for a round of upgrades and/or price-target hikes.



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