Pfizer stock is the worst SPX equity own the first month of the year
As President-elect Donald Trump prepares for his inauguration, his administration is gearing up to roll out significant policy shifts. Among these moves is the selection of Robert F. Kennedy Jr. to lead the Department of Health and Human Services -- a decision that's already putting pressure on vaccine stocks. For cautious investors, this could be a signal to steer clear of Pfizer Inc (NYSE:PFE), a stock with a history of underperforming in January.
According to data from Schaeffer's Senior Quantitative Analyst Rocky White, PFE averaged a January loss of 4.6% over the past 10 years, and finished the month in the red eight of those times. In fact, the last time Pfizer stock was higher for the month of January was in 2018. A comparable move from the security's current perch of $26.39 would place it near the $25 level.
The equity is pulling back slightly today, though it remains well above its Nov. 15 dip to $24.48 -- its lowest mark since January 2013. Shares are down 8.2% in 2024, though they're pacing for a small December gain to snap a four-month losing streak.
Should this historical trend play out once again, it could force options traders to change their optimistic tune -- a move that could weigh on PFE. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 0.55 that sits in the 1st percentile of annual readings, pointing towards a penchant for calls amongst short-term premium players.
Options look to be an attractive route to go when weighing in on the Pfizer stock, according to its Schaeffer's Volatility Index (SVI) of 20% that ranks in the 11th percentile of the last 12 months. What's more, the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively low 30 out of 100, making it a prime selling candidate for these short-term bulls.