One of the Worst Tech Stocks to Own in April

Plus, 24 other stocks that tend to underperform this month

Deputy Editor
Mar 28, 2024 at 11:00 AM
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Computer hardware stock Hewlett Packard Enterprise Co (NYSE:HPE) has had an extremely choppy past month on the charts, during which it hit a March 6 record high of $20.07 before swiftly turning lower. And though the shares are now on track for their sixth daily gain in the last seven, with recent support from the 20-day moving average, they're also coming up on a rough seasonality period. 

Per data from Schaeffer's Senior Quantitative Analyst Rocky White, HPE is one of the worst S&P 500 Index (SPX) stocks to own in April. The finished the month lower 62% of the time over the past 10 years, with a median loss of 4.4%. Based on its current perch at $17.80, another move of this magnitude would put the shares at $17.01. 

Worst of April

An unwinding of optimism amongst options traders could help push the shares lower. At the International Securities Exchange (ISE), Cboe Volatility Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), HPE's 50-day call/put volume ratio of 12.95 ranks higher than all other readings from the past year, showing calls being picked up at a much faster-than-usual rate. 

There is also minimal short covering potential, too. Short interest is down 27.5% over the last two weeks, and now represents a small portion of the stock's available float. 

When weighing in on HPE's next move, options look like a good way to go. The stock's Schaeffer's Volatility Index (SVI) of 27% ranks in the low 17th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment. 

 

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