25 Stocks to Avoid This Quarter

By Patrick Martin / January 03, 2020 / www.schaeffersresearch.com / Article Link

Big-BoardPlus, 24 other stocks that tend to struggle in Q1

Earlier this week we covered the best stocks to own in the first quarter of 2020. For every yin there's a yang, so we decided to also break down 25 stocks to steer clear from this quarter. Surprisingly, FAANG name Alphabet Inc (NASDAQ:GOOGL) popped up on the list, despite heading into 2020 with a 33% year-over-year gain.

Data from Schaeffer's Senior Quantitative Analyst Rocky White shows GOOGL has averaged a gain of only 2.2% in the first quarter over the past 10 years, and has finished the three-month period in positive territory only four times. Alphabet is the only FAANG stock to show up on the list, and one of only two tech stocks featured.

Worst Q1 Stocks 2020

This is quite the pivot from December for GOOGL, a month the stock typically outperforms. The shares are currently sitting at $1,366.32, a chip shot below yesterday's record high of $1,368.68. The equity is heading toward its sixth straight weekly win, and has seen pullbacks neatly contained by its 30-day moving average.

For those looking to speculate on the FAANG stock's next move with options, now looks to be the perfect time. The security's Schaeffer's Volatility Index (SVI) of 16% is in the 11th percentile of its annual range, meaning options players are pricing in incredibly low volatility expectations right now.

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