Plus, 23 other stocks that tend to struggle in the final month of the year
On Monday, we outlined 25 stocks to buy before December, if history is any indicator. Today, we're focusing on the worst-performing stocks in the final month of the year, historically. Among them are video game makers Take-Two Interactive Software, Inc. (NASDAQ:TTWO) and Activision Blizzard, Inc. (NASDAQ:ATVI).
Below are the 25 S&P 500 Index (SPX) stocks with the worst December returns, looking back 10 years. TTWO has racked up the second-worst average loss of 4.69%, and has ended the month higher less than half the time, per data from Schaeffer's Senior Quantitative Analyst Rocky White. ATVI also has a win rate of 40%, with an average December loss of 3.12%.
Take-Two stock just breached its year-to-date breakeven level, and has dropped more than 14% so far in November. The equity fell earlier this month after the company reported fiscal second-quarter earnings, and is now staring up at its 200-day moving average. Further, TTWO shares have entered bear-market territory, down more than 20% since their mid-October record high of $139.90. At last check, the security was trading at $110.41. Another 4.69% drop from current levels would place Take-Two stock around $105.23.
Despite the stock's fall from all-time highs, Wall Street remains firmly entrenched in the bulls' camp. TTWO currently boasts 13 "buy" or better ratings, compared to two lukewarm "holds" and not a single "sell." Should the shares once again struggle in December, a round of analyst downgrades could further drag on the stock.
Activision stock gapped lower on Nov. 9, after the company's quarterly earnings and guidance fell short of estimates. ATVI subsequently touched an annual low of $46.83 on Nov. 20, and is not only in bear-market territory, but has surrendered roughly 40% since its Oct. 1 record high of $84.67, pressured beneath its 10-day moving average. At last check, the stock was trading at $50.39. Another 3.12% loss next month would put it back below $49.
As with TTWO, Activision Blizzard stock remains vulnerable to analyst backlash. Currently, 17 of 23 brokerage firms maintain "buy" or better opinions, with not a "sell" to be found. Likewise, the consensus 12-month price target of $73.69 represents expected upside of 46% from the security's current perch.