Seasonality Says Buy the Dip on This Blue Chip
A look at the 25 best stocks to own in April
The S&P 500 Index (SPX) is on pace to end March with a modest 0.4% gain, which would mark theindex's third straight month in the black. Looking ahead, April tends to bode well for Wall Street, with the SPDR S&P 500 ETF Trust (SPY) -- an exchange-traded fund (ETF) that mimics the S&P 500 -- ending the month higher nine of the past 10 years. Below, we take a look at individual stocks that tend to shine in April, including blue chip American Express Company (NYSE:AXP), which is down today on FAANG competition fears.
Here are the 25 top SPX stocks to own in April, looking back 10 years. To make the list -- cultivated by Schaeffer's Senior Quantitative Analyst Rocky White -- stocks had to have at least eight years' worth of returns.
American Express stock has averaged an April gain of nearly 12% in the past decade -- the second-highest average return on the list above. Further, AXP has ended the month higher 80% of the time.
Today, the Dow stock is down 0.9% at $108.51, after Apple (AAPL) unveiled a new credit card. The security just last week peaked at $114.25 -- within a point of its Dec. 3 all-time high of $114.55. Even with the recent pullback, AXP has added more than 21% in the past three months. Another 12% April rally from current levels would put the credit card concern around $121.53 -- well into uncharted territory.
