Don't hold your breath waiting for a market rally in the coming days. According to CNBC, September is not a good month for stock performance. Historically, if a stock starts the month off in a downtrend, it only gets worse from there.
And this September got off to a particularly rocky start. This month has already priced in a 4.1% drop in the Dow Jones Industrial Average, making this the worst September on record since 1900.
According to research from Bespoke Investment Group, "when the Dow industrials begin down 2 percent or more for the first three trading sessions, an average 6.31 percent decline has followed on the 13 previous occasions that has occurred." (Via CNBC)
Although the September drop could just owe to coincidence rather than a hard and fast rule (after all, there are some exceptions), we thought it might be worth taking a look at the worst performers over the last month.
To narrow down our screen we searched for the names experiencing significant levels of institutional buying, meaning hedge funds think there's reason to suspect a rebound.
Think these stocks have a few more bad weeks ahead of them? Use the list below as a starting-off point for your own analysis. (Click here to access free, interactive tools to analyze these ideas.)
2. Isoftstone Holdings Limited
3. James River Coal
5. MedQuist Holdings
6. SodaStream International
8. VanceInfo Technologies
List compiled by Eben Esterhuizen, CFA.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Becca Lipman and Eben Esterhuizen does not own any of the shares mentioned above. Institutional data sourced from Fidelity, all other data sourced from Finviz.
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