Some companies, like Bath & Body Works and Southwest Airlines, can help investors get through what has historically been a rough month for stocks. According to the Stock Trader’s Almanac, September is notoriously the worst month of the year for the S&P 500, Dow Industrials, Nasdaq Composite and Russell 2000 — and the last four months of September have seen particularly steep declines. This year, investors are in even more troubled waters as markets await the outcome of the U.S. presidential election in November. Using FactSet, we examined the average September performance of companies in the S&P 500 over the past decade, then ranked them by best and worst track records. Take a look at the stocks with the best average performance in September: Southwest Airlines has posted an average gain of 3.27% in September over the past decade, according to the analysis. The Dallas-based airline, which has gained about 7.2% over the past month but lost ground for the year, is widely liked by analysts. Those who follow the stock rate it on average as a “hold,” according to FactSet. Evercore ISI analyst Duane Pfennigwerth upgraded Southwest to “outperform” from “in line” on Tuesday, saying the company could see strong upside going forward as it continues to monetize the value of its fleet and focuses on profit margins. The firm’s $35 price target implies shares could rise 21%, more than the consensus price target of analysts surveyed by FactSet implies. Cybersecurity provider Palo Alto Networks is up 21.7% this year and could rise even further this month, at least based on its historical performance. Over the past decade, shares have gained an average of 2% in September. Palo Alto has recently rebounded following a stronger-than-expected fiscal fourth quarter and an optimistic outlook. Several Wall Street firms raised their price targets on the company following its latest financial report. “PANW’s platform strategy is successfully driving larger deals,” Morgan Stanley analyst Hamza Fodderwala wrote in an Aug. 20 note to clients, while reiterating an overweight rating. “Looking ahead, multiple product cycles, AI tailwinds and easier comparisons should drive revenue expansion through fiscal 2025.” Bath & Body Works has the highest median performance of the group, gaining an average of 6.16% over the past 10 September months. Bath & Body Works, recently hurt by weaker-than-expected second-quarter sales, has fallen more than 28% year-to-date. Still, analysts surveyed by FactSet believe there is more than 38% upside for the fragrance retailer. Here are the worst-performing companies over the past 10 months of September: Incyte, a developer of cancer drugs, and mobile computer company Zebra Technologies had their worst average performances in September over the past decade; both lost an average of more than 8% over the month. Wolfe Research analyst Rob Ginsberg said Tuesday he believes Incyte stock is “on the verge of a breakout” and recommended the stock. Shares have risen more than 9% this quarter, partly on excitement over positive test results announced Aug. 15 from Incyte’s Phase 3 trial of tafasitamab, a prescription drug for adults with relapsed or refractory diffuse large B-cell lymphoma. Other companies with generally poor performance in September include construction company PulteGroup and movie studio and CBS television owner Paramount Global.
