History Says Buy These 25 Stocks in March
Amid the chaos of geopolitical tensions and rising Middle East conflict, it can be a comfort to return to quantitative data. It was even more of a comfort to see Newmont Corporation (NYSE:NEM) -- a frequent flier at Schaeffer's --land on a list of the 25 best S&P 500 Index (SPX) stocks to own in March, historically, in the last decade.
NEM is set to open March lower, down 1.3% at last glance. But according to data from Schaeffer's Senior Quantitative Analyst Rocky White, over the past 10 years, NEM averages an impressive March gain of 7.8%, finishing higher 90% of the time. From its current perch at $128.30, a move of this magnitude would put the gold mining stock above $135 -- a new record high.
The equity has consolidated on the chart since a Jan. 29 record high of $134.88, with support from both the 50- and 80-day moving averages in place. Over the past 12 months NEM has surged 195%, and this short-term rangebound trading is forming a bull flag pattern that can lead to the next leg higher.
Puts have been much more popular than usual over the last 10 weeks, per Newmont stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 72% of readings from the past year.
NEM tends to outperform options traders' volatility expectations, too. This is per its Schaeffer's Volatility Scorecard (SVS) of 79 (out of 100).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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