October is historically a very volatile month for the market. However, these stocks are relatively stable and can help investors ride out the wild swings. Since 1950, the S & P 500 has recorded an average daily move of 1.3%, higher or lower, for the month . Even when excluding the Black Monday crash of 1987, October remains the stormiest month for stocks. With this in mind, CNBC PRO screened for some safe-haven stocks that investors can look toward for some calm during the rocky times. Here’s the criteria for the following stocks: Low volatility: 3-year Beta of less than 1 Median gain of 3% or more over the last 10 Octobers Not lost more than 1.5% in any of the last 10 Octobers Take a look at the five stocks that made the cut, and where Wall Street forecasts them going forward. Power companies made up the majority of the names on the list. Rate-sensitive utilities stocks have outperformed in recent weeks as investors look toward a lower interest rate environment. Year to date, the sector is up nearly 27%, beating the S & P 500’s 20% advance. NextEra Energy , FirstEnergy , American Electric Power and PPL all have managed a median gain of 3.5% and more over the last 10 Octobers. Meanwhile, their 3-year beta values have come in at 0.75 or lower, indicating they’re less volatile. Year to date, NextEra Energy has rallied nearly 39%. Two-thirds of analysts covering the stock rate it a buy or a strong buy, according to LSEG. To be sure, the stock is already trading 0.3% above its consensus price target, meaning it could be due for a pullback soon. Analysts are also bullish on FirstEnergy, which has advanced around 20% in 2024. The consensus rating on the stock is a buy. Meanwhile, Wall Street is sticking to the sidelines on American Electric Power, with the consensus rating at a hold. Shares have added nearly 25% year to date but is are 1% above its average price target. PPL, which has advanced around 22% this year, also provides investors with an attractive dividend yield of 3.2%. Truist Financial was the only non-utility name on the list. The bank has gained a median of 3.66% over the last 10 Octobers with a beta value of 0.81. Year to date, shares have climbed 15.6%. Although more than half of analysts covering the company rate it a hold, the consensus price target implies more than 9% upside potential from Thursday’s close, per LSEG. TFC YTD mountain Truist Financial in 2024
Investors can depend on these frightless five stocks during a scary October for markets
