Plus, 23 other stocks that tend to underperform in December
You would think that with the holiday season upon us and retail spending ramping up, that December would be time to shine for shipping giants FedEx Corporation (NYSE:FDX) and United Parcel Service Inc (NYSE:UPS). History says not so fast, with FDX and UPS among the 25 worst-performing stocks on the S&P 500 Index (SPX) in December, looking back 10 years.
Per the chart below from Schaeffer’s Senior Quantitative Analyst Rocky White, FedEx stock averages a December loss of 3.7% over the last 10 years, finishing the month with a positive return only three times. UPS, meanwhile, averages a monthly loss of 2.6% and has finished December positive only 30% of the time in the last decade.
FedEx stock was last seen up 0.6% to trade at $261.74, adding to its 51% year-to-date lead. UPS is 0.6% higher today to trade at $152.58 but is off by 12.4% in 2023, and is staring up at its 100-day moving average. It’s also worth noting that FedEx and UPS stock have a 14-day Relative Strength Index above 70, firmly in ‘overbought’ territory, which could indicate a short-term breather on the charts.
Both stocks boast cheap options at the moment. FDX and UPS’ respective Schaeffer’s Volatility Index (SVI) readings of 21% and 20% sit in the bottom 15th percentile all other readings in their annual range, implying that options players are pricing in relatively low volatility expectations at the moment.
