September Syndrome Takes Hold: Zacks Recommends Defensive Stocks to Safeguard Portfolios
The so-called 'September Syndrome' has taken hold once again in the US stock market. This phenomenon, where September historically records an average decline of 0.7% for the S&P 500 index since 1950, is attributed to multiple concerns including soaring yields on U.S. Treasury Notes with a 10-Year bond hitting a 19-year high and sticky U.S. inflation.
To safeguard portfolios from this trend, Zacks recommends investing in low-beta (beta >0<1) high-yielding defensive stocks with a favorable Zacks Rank. Three such stocks are Archer-Daniels-Midland Co. (ADM), Amgen Inc. (AMGN), and Sunoco LP (SUN).
Archer-Daniels-Midland has provided double-digit returns year-to-date, while also advancing its Optimize, Drive and Grow pillars to enhance productivity, accelerate cost savings, expand BioSolutions, and leverage digital tools to unlock margin opportunities. The company's Human Nutrition unit is gaining from Flavors, Decatur East, and emerging demand for natural ingredients.
Amgen has been benefiting from increasing sales of key medicines like Evenity, Repatha, and Uplizna, as well as newer medicines like Imdelltra, Tavneos, and Tezspire. The company's strong guidance includes a raised total revenue forecast for 2026 to $38.2 billion to $39.4 billion.
Sunoco LP has seen its scaled fuel distribution platform, broader midstream network, and acquisitions support recurring cash generation across a more diversified footprint. The company's Distribution growth remains attractive, backed by improved coverage and leverage below management's long-term target.