The PowerShares Dynamic Food & Beverage ETF (PBJ) is heading into a historically bullish month
The March-through-May period has historically been one of the
best times to own stocks. For March, specifically, food and beverage stocks have tended to outperform. In fact, according to data from Schaeffer's Senior Quantitative Analyst Rocky White, the
PowerShares Dynamic Food & Beverage ETF (PBJ) has turned in a positive trading performance in March for the past 10 years! On average, the shares of PBJ have added 3.7% -- which includes a 7.1% surge in 2013.
The shares have spent the past year making volatile intraday swings, though its range has been defined by an annual low of $31.53, hit on April 15, and a record peak of $34.74, tagged on July 25. More recently, the exchange-traded fund (ETF) was seen trading at $33.36 -- just below its year-to-date breakeven mark at $33.47, and up 4.6% year-over-year. Meanwhile, the shares are heading into historically bullish March riding atop newfound support from their 50-day moving average.
Tyson Foods, Conagra Brands Among Best Stocks to Own in March
Among specific PowerShares Dynamic Food & Beverage ETF (PBJ) components, chicken producer
Tyson Foods, Inc. (NYSE:TSN) and packaged food firm
Conagra Brands Inc (NYSE:CAG) are on the list of
best stocks to own next month. In the past 10 years, TSN has averaged a March return of 6.2%, while CAG has gained an average of 4.9%. Both stocks have been higher 90% of the time.
Now appears to be an opportune time to bet on the near-term trajectories of both TSN and CAG with options, too. Tyson's Schaeffer's Volatility Index (SVI) of 23% ranks in the 19th percentile of its annual range, while Conagra's SVI of 18% is docked below 93% of all comparable readings taken in the past year. In other words, low volatility expectations are currently being priced into the stocks' short-term options -- a boon to premium buyers.
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