SBUX stock boasts a 90% win rate in November, going back 10 years
October was kind to the stock market, with the S&P 500 Index (SPX) tacking on 8% to lock in a massive rally after a two-month slide. Investors are now eager to see how Wall Street responds in November, and data shows several stocks could extend their rallies, if past is precedent. Coffee giant Starbucks Corporation (NASDAQ:SBUX) is poised to benefit, as it is among the 25 best equities to own this month.
The chart below, compiled by Schaeffer's Senior Quantitative Analyst Rocky White, shows SPX stocks that have historically fared the best in November, with data going back a decade. SBUX posted a November win of in nine of the last 10 years, with the shares boasting an average monthly gain of 6.5% -- one of the highest on the list.
Starbucks stock is fractionally higher this afternoon, last seen up 0.5% to trade at $86.92. And though the the security added 17% in the last six months, it remains down over 25% in 2022. It's possible that SBUX's recent positive price action may be tied to a historically bullish trendline, which could send shares even higher given their seasonality potential.
Specifically, the security recently came within one standard deviation of its 80-day moving average. According to additional data from White, Starbucks stock observed five similar signals in the last three years, and finished higher over the next 21 days in 60% of those cases.
An unwinding of pessimism in the options pits could have even more bullish implications for the security. SBUX's 10-day put/call volume ratio over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 99% of readings from the past 12 months. This means puts have been picked up at a much quicker-than-usual pace.
A further shift in sentiment amongst the brokerage bunch could help boost the shares as well. Of the 25 in coverage, 14 analysts still rate Starbucks stock a tepid "hold."