Shares of Goldman Sachs and JPMorgan Chase tend to underperform in March
After a red-hot start to 2023, stocks took a step back in February. Looking ahead, investors will continue to look towards inflation data to gauge how the Federal Reserve will react. You can't count out seasonality, however, so we've compiled a list of the worst performing stocks for the month of March. Today, we're looking at Goldman Sachs Group Inc (NYSE:GS) and JPMorgan Chase & Co (NYSE:JPM) as two near-term selling ideas.
According to Schaeffer's Senior Quantitative Analyst Rocky White's list of 25 worst performing S&P 500 Index (SPX) stocks for March, Goldman Sachs is the worst performing bank stock for the month, when looking at data going back 10 years. JPMorgan Chase stock, meanwhile finds itself near the middle of the list.
According to White's data, GS finished the month lower eight times in the last decade, averaging a 3.7% loss. Meanwhile, JPM closed lower seven times, and averaged a loss of 2.6%.
Goldman Sachs stock just turned in its second monthly loss in three, a trend that has it contenting with its year-to-date breakeven mark. JPMorgan Chase stock is faring a bit better, up 6.2% in 2023. A floor has formed at the $138 level, which has saved multiple pullbacks over the last month, and JPM is trading above most significant moving averages.
Now could be an ideal time to weigh in on either security with options, as traders are pricing in low volatility expectations. This is per GS's Schaeffer's Volatility Index (SVI) of 24%, which stands in the 7th percentile of its annual range. JPM's SVI of 21% ranks in the extremely low 3rd percentile of annual readings.