Plus, 24 other stocks that outperformed in February, historically
The S&P 500 Index (SPX) has roared back to life so far in 2023, and now boasts an 8.9% year-to-date lead. As the best single gauge of large-cap U.S. equities, we're taking a look at the best performing stocks on the SPX for the month of February in the last decade. Aerospace and defense giant Raytheon Technologies Corp (NYSE:RTX) stands out as one of them.
According to Schaeffer's Senior Quantitative Analyst Rocky White, Raytheon Technologies stock sports an average return of 3.8% in the month of February over the last 10 years, and finished the month higher eight times. That's good for not only second-best among Dow members, but second amongst defense stocks.
RTX is trading at $97.48 at last check, so a move of similar magnitude would put RTX back above $100. The shares are battling both their year-to-date and year-over-year breakeven levels, but aren't far off their Jan. 24 record high of $108.84.
Puts are becoming more popular. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Raytheon Technologies stock's 50-day put/call volume ratio sits higher than 75% of readings from the past year. In other words, long puts are getting picked up at a quicker-than-usual clip in the last two months.
It's also worth pointing out that the equity ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 14 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.