5 Best Stocks For A Scary October
Zacks Investment Research | Oct 03, 2016 07:17AM ET
With the presidential elections just around the corner, the month of October is expected to face heightened turbulence. This month, historically, has earned a formidable reputation of providing dismal returns ahead of elections, while concerns about Deutsche Bank AG (NYSE:DB) have rattled the financial markets. Meanwhile, uncertainties surrounding the Fed rate hike coupled with high valuations are expected to aggravate concerns.
To overcome the market adversities, it will be judicious to invest in stocks that boast strong fundamentals and are less volatile than the broader markets.
Election to Spur Volatility
Elections traditionally lead to stock market volatility and it won’t be any different this time around. According to the Stock Trader’s Almanac, which dates back to 1950, the S&P 500 averages a decline of 0.7% and the Dow industrials averages a 0.8% drop. The performance of the more-volatile indices like the Nasdaq and the Russell 2000 is worse, with an average setback of over 2%.
The head-to-head between Hillary Clinton and Donald Trump is quite a close one. Ahead of the first U.S. presidential debate, Trump took a two-point lead over Clinton, but it was Clinton who held an edge over Trump in the first presidential debate by displaying a better degree of preparedness on matters concerning public policy, defense and tax reform (read more: .
American Eagle Outfitters (NYSE:AEO) operates as a specialty retailer offering on-trend clothing, accessories, and personal care products. The company has a beta of 0.72. American Eagle Outfitters’ current year estimated earnings growth rate is 20.5%. The company has also been on an upward trend over the past 60 days, as estimates have risen from $1.27/share two months ago to $1.31 right now.
AMER EAGLE OUTF Price and Consensus
Cooper-Standard Holdings Inc. (NYSE:CPS) manufactures and sells sealing, fuel and brake delivery, fluid transfer, and anti-vibration systems. The company has a beta of 0.62. Cooper-Standard’s current year estimated earnings growth rate is pegged at 10.6%. The company has also been on an upward trend over the past 60 days, as estimates have risen from $9.92/share to $10.13 right now.
COOPER-STANDARD Price and Consensus
Fresh Del Monte Produce Inc. (NYSE:FDP) produces and distributes fresh and fresh-cut fruit and vegetables worldwide. has a beta of 0.42. Fresh Del Monte’s current year estimated earnings growth rate is pegged at 69.5%. The company also saw its estimates rise from $3.67/share two months ago to $4.22 right now.
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FRESH DEL MONTE Price and Consensus
Jabil Circuit Inc. (NYSE:JBL) provides electronic manufacturing services and solutions worldwide. The company has a beta of 0.87. Jabil Circuit’s current year estimated earnings growth rate is pegged at 8.7%. The company also witnessed a rise in estimates from $1.62/share two months ago to $1.70 right now.
JABIL CIRCUIT Price and Consensus
Superior Industries International, Inc. (NYSE:SUP) manufactures and sells aluminum wheels to original equipment manufacturers in North America. The company has a beta of 0.94. Superior Industries’ current year estimated earnings growth rate is pegged at 101.6%. The company’s earnings estimates increased from $1.99/share to $2.04 over the last 60 days.
SUPERIOR INDS Price and Consensus
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