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Semiconductor stocks to avoid in January


When Wall Street Wants To Join New Year, you should keep an eye on the stocks that are best left on the sidelines at the beginning of the year. Historically, there were some notable names that tended to underperform the broader market in January, and Schaeffer Senior Quantitative Analyst Rocky White weeded 25 bad names out. The worst way to start is to keep your trading portfolio clean of any flaws. to start a year.

Being the third worst-performing stock in the S&P 500 Index (SPX) should own in January be concerns about semiconductors Qualcomm, Inc. (NASDAQ:QCOM). Per White, over the past 10 years, QCOM has averaged -3.3% returns and is only 3/10 times higher. A move of similar magnitude from Qualcomm stock’s current price of $107.32 would push the stock below its yearly low of $103.88.

Worst of January 2023

Worst of January 2023

Like most tech and semiconductor stocks, QCOM has had a rough year. A mid-July rally was rejected by the 180-day moving average, while the 100-day trendline recently formed at the ceiling. Year-to-date, Qualcomm stock is down 41%.

December 302022 QCOM chart

December 302022 QCOM chart

An openness of optimism from brokerage group can weigh on stocks. Right now, 12 out of 17 analysts rate QCOM as “buy” or better. Additionally, the 12-month consensus target price of $146.43 is 35.8% higher than QCOM’s current perch price. Both of these point towards a possible downgrade and/or cut of the target price.

Weighing with options can be a conservative route. Qualcomm’s Schaeffer’s Volatility Index (SVI) is up 39%, up from just 28% last year, meaning options traders are pricing with low volatility expectations. It’s also worth pointing out that QCOM ranks low on the Schaeffer Volatility Scorecard (SVS), with a score of just 16 out of 100. In other words, the stock has consistently experienced lower volatility than other peers. its options are already priced in, making the stock a potential best-selling candidate.

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