ADBE has only finished the month higher twice in the last decade
As September gets underway, we want to help you stay ahead of the game with our monthly list of stocks to buy and avoid. We've hit the best Dow stock to own in September, but below we're going to take a look at where you might want to avoid putting your money in what historically tends to be the worst trading month of the year.
Below is a list of the 25 worst-performing S&P 500 stocks in September over the last 10 years, per data from Schaeffer's Senior Quantitative Analyst Rocky White. Among the historical underperformers is Adobe Inc (NASDAQ:ADBE).
According White's data, ADBE averaged a loss of 6.2% over the last 10 years, and has finished higher only twice. From its current perch, a pullback of this magnitude could put the software name back near $271. The stock is already living up to the data, down 1.6% to trade at $288.04 at last check today and looking to snap a three-day win streak.
The stock's recent rebound appears to be losing steam at the $300 level, while long-term pressure at the descending 320-day moving average lingers above as well. Year to date, ADBE is down 17.7%.
Options traders are still buying into the hype, however. This is per the equity's 50-day call/put volume ratio of 2.21 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 82% of readings from the past year. Should this bullish sentiment begin to unwind, it could trigger more headwinds for the shares.