One coffee stock could surge next month, if past is prologue
February has been kind to the stock market thus far, with the S&P 500 Index (SPX) on track for a 3.7% gain. Looking ahead, several stocks could extend their rallies into March, if recent history is any indicator. Below are the 25 best stocks to own in the month of March, with coffee giant Starbucks Corporation (NASDAQ:SBUX) at the top of the list.
The SPX stocks below have fared the best in March, looking back 10 years. To qualify for the list -- cultivated by Schaeffer's Senior Quantitative Analyst Rocky White -- the securities had to have at least eight years' worth of historical returns.
SBUX is only one of four stocks that have been positive every single March over the last decade, with the shares boasting an average monthly gain of nearly 7% -- one of the highest on the list above. Looking at the charts, the shares have been on fire already in 2019, up 10.7% year-to-date and set to end February with a 4.5% gain. In fact, SBUX just touched a record high of $72.07 in today's session, but was last seen fractionally lower at $71.28. Another 7% pop from current levels would put the shares around $76.27.
Today's breather isn't too surprising, considering the security's 14-day Relative Strength Index (RSI) was at 70 -- in overbought territory -- heading into this week. However, options traders looking to bet on another solid March for SBUX can pick up contracts at a relative discount. The stock's Schaeffer's Volatility Index (SVI) of 17% is in just the 14th percentile of its annual range, pointing to relatively low volatility expectations being priced into short-term options.