This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Stocks That Avoid the September Slump

BOSTON ( TheStreet) -- This year's cruel summer in stocks may get worse if history serves as a guide.

The S&P 500 has recorded an average decline of 0.4% in September over the past 40 years, the worst month for the benchmark index, according to Capital IQ. The Dow Jones Industrial Average tends to fall 1.1% dating back to its beginning in 1896, says Dow Jones Indexes. That compares to an average gain of about 0.7% for all other months combined.

Yet, several stocks in the S&P 500, such as Google (GOOG - Get Report) and Netflix (NFLX - Get Report), tend to outperform.

September has delivered some of the worst beatings in the past decade -- as the financial crisis unfolded in 2008, when the Internet bubble kept bursting in 2002 and during the terrorist attacks in 2001.

Investors returning to the stock market after avoiding a tumultuous summer have their work cut out for them. In August, equities were crushed under the weight of a downgrade of U.S. debt by Standard & Poor's, as well as escalating concerns over European debt. Stocks rallied at the end of August on expectations another asset-purchase plan will be unveiled by the Federal Reserve when the central bank meets Sept. 20 to discuss interest-rate policy.

With so much riding on the Fed's next meeting, and given the historical performance of equities during September, investors are rightfully worried about the direction of stocks. As it turns out, some companies have been safer bets during September, based on historical returns in the month of September.

The following 10 stocks are the best performers on the S&P 500 in September over 10 years, according to data provided by Capital IQ. As some companies have been publicly traded for less than a decade, like Google, TheStreet is including those that have return data for at least five years. That excludes some big gainers in September like Carefusion (CFN) and Mead Johnson (MJN), which have only two years of returns data for the month.






10. Nike (NKE - Get Report)

Company Profile: Nike is the largest seller of athletic footwear and athletic apparel in the world.

Average Return Since 2001: 6.6%

Best September Performance: +17.3% in 2009

Worst September Performance: -6.1% in 2001

Analysts Ratings: Nike still has significant upside potential, based on analysts' price targets. The average target price of $99.61 is about 14% above current price levels. Seventeen investment research firms, from FBR Capital to Stifel Nicolaus, rate the stock a "buy." The five other analysts covering the firm say investors should hold onto the stock.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CME $94.24 0.90%
CRM $74.41 2.10%
GOOG $541.54 -0.18%
NFLX $624.00 0.16%
NKE $104.49 0.09%

Markets

DOW 18,265.75 -19.99 -0.11%
S&P 500 2,131.22 +0.40 0.02%
NASDAQ 5,100.4870 +9.6930 0.19%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs