Best Retail Stocks to Buy in September

Retail takes up seven of the top 25 spots

Managing Editor
Sep 11, 2023 at 10:08 AM
facebook X logo linkedin


Subscribers to Chart of the Week received this commentary on Sunday, September 3.

Here at Schaeffer’s, a new month usually means one thing: a fresh list of the best and worst 25 stocks to buy. For September, Senior Quantitative Analyst Rocky White pulled an interesting slew of names for his “Best S&P 500 Stocks in September” for the last 10 years, with one sector reoccurring so often, it can only be assumed is no coincidence. Below we’ll take a closer look at the best 25 stocks to buy in September, but be sure to keep an eye out on our website for a special Labor Day piece on 25 exchange traded funds (ETF) to avoid as well!

Jumping right in, we are seeing a clear indication of several repeat sectors on the table below, some of which include retail, travel & leisure, and tech. Taking a closer look at retail, the sector holds five of the top 10 performing stocks in the month of September, and is the second-best overall performer. Looking broader, retail takes up seven of the 25 spots.

cotwbest25sept

It’s not entirely surprising that historically retail sees an uptick in outperformance as we enter not only a new season, but near the holidays as well. Enjoying its spot second from the top of the list is O’Reilly Automotive (ORLY), which has moved mostly higher since falling to its May 2022 lows. After breaking above the long-term resistance of $880 back in April, this level moved in as stable support during several pullbacks. There also looks to be a trendline of support forming that stems from the stock’s early June drop.

Even further, options are looking attractively priced, per the stock’s Schaeffer’s Volatility Index (SVI) of 17%, which ranks in the bottom 5th percentile of annual readings. In fact, the six other retail giants on the list also are sporting attractively priced options, with Etsy (ETSY), Ross Stores (ROST), and Walmart (WMT) all ranking in the bottommost annual percentile.

 

orlycotw

Retail sales data made headlines this month, after it saw numbers for July increase a more-than-expected 0.7%. Core retail sales also saw a bump, moving 1% higher. This data gave investors an optimistic outlook for the broader economy, subsequently brushing inflation fears aside for the time being. That said, retail stocks look like a good bet not only historically, but as an affordable, common pick of late.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI