Semiconductor Stock to Avoid in April

Plus, 24 other stocks to avoid this month

Jake Scott

Deputy Editor

Apr 6, 2023 at 10:12 AM

AVGO

Broadcom Inc (NASDAQ:AVGO) just showed up on Schaeffer's Senior Quantitative Analyst Rocky White's list of 25 S&P 500 stocks with the worst returns in April. Per White's data, AVGO has ended the month lower seven times over the past 10 years, averaging a drop of 2.1%. Last seen down 1.3% to trade at $621.04, a similar move from Broadcom stock's current perch would put the equity near the $608 area.

Worst of April

Though the stock sports a 11% year-to-date lead and is holding onto its year-over-year breakeven level, it's on track to snap a three-week winning streak. The shares are also at risk of breaking below a short-term consolidation around the $620 mark.

For those still looking to play Broadcom stock's next move, options look like the way to go. The equity's Schaeffer's Volatility Index (SVI) of 24% stands higher than only 4% of readings from the past 12 months, implying option players have rarely priced in lower volatility expectations.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!