Molson Coors Beverage (NYSE:TAP) Stock Pick for Summer 2021


Plus, another 24 stocks to avoid despite a stellar start to 2023

After a stellar close to the month, traders are feeling encouraged to put the January Barometer to the test. However, as they head into February, there are plenty of stocks they will want to avoid that typically underperform this time of year, despite how good of an omen the first month of the year might have been.

 

Schaeffer’s Senior Quantitative Analyst Rocky White has pulled a list of the 25 worst S&P 500 Index (SPX) names to own in February, including Molson Coors Beverage Co (NYSE:TAP). According to White’s study, TAP averaged a -2.5% return during the past 10 years, and managed to score a monthly win just three times.

 

Worst of Feb

Molson Coors Beverage stock is clinging to a 9.3% year-over-year lead, and has just bounced off support at the 100-day moving average. The $56 level kept a lid on TAP’s December rally attempt, though, which still was far away from its 2022 peak of $60.12.

 

TAP 100 Day

Options traders are remain overwhelmingly bullish toward the beverage stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TAP’s 50-day call/put volume ratio of 5.29 sits higher than all annual readings. Should some of this pessimism start to unwind, TAP could tumble even lower.

 

Weighing in with options could be a good move. This is per Molson Coors Beverage stock’s Schaeffer’s Volatility Index (SVI) of 23%, which ranks in the extremely low 6th percentile of readings from the past year. In other words, options traders are pricing in low volatility expectations.



Image and article originally from www.schaeffersresearch.com. Read the original article here.

By admin