We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Buy 5 Stocks to Stay Safe in Wall Street's Historically Worst Month
Read MoreHide Full Article
Key Takeaways
September has historically been the worst month for U.S. equities, with major indexes ending in negatives.
Escalating war, sticky inflation and rising global bond yields have revived Wall Street volatility.
ADM, TRV, VIRT, PAYC and ALL combine low betas, dividends and improving earnings estimates.
September is historically known as the worst-performing month for U.S. equities. According to the 2026 Stock Trader’s Almanac, the S&P 500 index has recorded an average decline of 0.7% in September since 1950. The Dow has fallen 0.8% during the same period.
The 2026 Stock Trader’s Almanac also reported that the Nasdaq Composite has fallen 0.9% in September since 1971, and the small-cap benchmark — Russell 2000 — has declined 0.8% in the same month since 1979.
Moreover, a Bank of America research report has revealed that in September, the S&P 500 has lost 1.17% on average since 1928 and the broad-market index has ended in negative 56% of those years.
At this stage, it should be prudent to invest in low-beta (beta >0<1) high-yielding stocks with a favorable Zacks Rank in September. Five such stocks are: Archer-Daniels-Midland Co. (ADM - Free Report) , The Travelers Companies Inc. (TRV - Free Report) , Virtu Financial Inc. (VIRT - Free Report) , Paycom Software Inc. (PAYC - Free Report) and The Allstate Corp. (ALL - Free Report) . Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Volatility Reappears on Wall Street
This year, volatility has appeared on Wall Street since the first trading day of September. Market participants are worried about three immediate concerns. First, the U.S.-Iran war escalated from Aug 30, for the first time since late July. As a result, crude oil prices spiked. The price of the U.S. benchmark — the West Texas Intermediate crude oil future — crossed $91 per barrel and the price of the global benchmark — the Brent crude oil future — crossed $95 per barrel.
Second, on Aug 28, in his remarks at the Fed’s annual symposium of economic policies in Jackson Hole, WY, Chairman Kevin Warsh warned about the sticky inflation rate. Higher crude oil prices will worsen the inflationary situation, forcing the Fed to hike the Fed fund rate anytime soon.
Third, the yield on the benchmark 10-Year U.S. Treasury Note reached its highest level since November 2023. Japan’s benchmark 10-Year Treasury Note yield touched 3% for the first time since 1996. The yield on U.K. 10-year government Gilt reached the highest level since June 2008. Yields on German and France Government bonds also moved higher.
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from its strategic endeavors. ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and boost customer reach.
ADM’s Human Nutrition unit is gaining from Flavors, Decatur East and emerging demand for natural ingredients. In addition, a focus on higher-margin product lines and ongoing cost optimization further aided results. ADM is expanding profitability by complementing its core processing business with investments in biosolutions, precision fermentation and decarbonization capabilities.
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 52.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.9% over the last 30 days. ADM has a beta of 0.62 and a current dividend yield of 2.56%.
The Travelers Companies Inc.
Travelers Companies’ has been benefiting from broad commercial and personal insurance franchises, disciplined underwriting and growing investment income. Second-quarter 2026 results highlighted the strength of TRV’s earnings base, with healthy underlying margins, lower catastrophe losses and favorable reserve development across all segments.
Continued technology investment, refined pricing and segmentation, a high-quality fixed-income portfolio and consistent capital returns should sustain TRV’s earnings growth and shareholder value.
Although weather volatility, loss-cost inflation, reinsurance expenses and changing pricing conditions remain risks, TRV’s operating strength and diversified business mix should help it navigate these pressures. Also, solid fundamentals and dependable execution support further share-price gains.
Travelers Companies has an expected revenue and earnings growth rate of -0.1% and 22.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last 30 days. TRV has a beta of 0.44 and a current dividend yield of 1.37%.
Virtu Financial Inc.
Virtu Financial is benefiting from an active trading backdrop that continues to support opportunity capture across equities, options, and other asset classes. VIRT is scaling its capital base and reinforcing returns by investing in technology and talent, which has supported higher daily adjusted net trading income through the cycle.
VIRT’s Execution Services is gaining relevance, extending diversification with expanding product penetration across workflow technology, algorithms, and capital markets activity. Balance sheet liquidity and disciplined leverage help fund reinvestment while supporting dividends and buybacks. In first-half 2026, VIRT’s adjusted EBITDA rose 38.9% annually.
Virtu Financial has an expected revenue and earnings growth rate of 21.9% and 22.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% over the last 30 days. VIRT has a beta of 0.62 and a current dividend yield of 1.47%.
Paycom Software Inc.
Paycom Software is benefiting from an employee-first, single-database HCM platform that pushes automation deeper into payroll and HR workflows. Rising adoption of IWant, Project Arc and new products such as Career and Succession Planning and Asset Management broadens PAYC’s platform and supports cross-selling.
PAYC’s revenue growth accelerated in the second-quarter 2026, while automation-driven efficiencies lifted margins and management raised its full-year outlook. Sales capacity expansion and faster rep productivity add to the longer-term opportunity. Aggressive buybacks also support per-share value creation.
Paycom Software has an expected revenue and earnings growth rate of 7.7% and 28.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 10.9% over the last 30 days. PAYC has a beta of 0.78 and a current dividend yield of 0.63%.
The Allstate Corp.
The Allstate delivered a second-quarter earnings beat, driven by sustained premium growth, expanding market share, and stronger underwriting performance. ALL’s Property-Liability premiums earned rose 4.7% year over year in the first half of 2026, while policies in force increased 2.6%. Protection Services revenues grew 7.5%, driven by Allstate Protection Plans and Roadside.
ALL’s Portfolio streamlining, Transformative Growth, and cost discipline are also strengthening profitability, with the Property-Liability underlying combined ratio improving to 79.8% in the first half of 2026. Strong cash generation supports shareholder returns, including $1.3 billion returned in the second quarter of 2026.
The Allstate has an expected revenue and earnings growth rate of 5% and -0.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1% over the last seven days. ALL has a beta of 0.15 and a current dividend yield of 1.68%.
View the Zacks #1 Rank List
Image: Bigstock
Buy 5 Stocks to Stay Safe in Wall Street's Historically Worst Month
Key Takeaways
September is historically known as the worst-performing month for U.S. equities. According to the 2026 Stock Trader’s Almanac, the S&P 500 index has recorded an average decline of 0.7% in September since 1950. The Dow has fallen 0.8% during the same period.
The 2026 Stock Trader’s Almanac also reported that the Nasdaq Composite has fallen 0.9% in September since 1971, and the small-cap benchmark — Russell 2000 — has declined 0.8% in the same month since 1979.
Moreover, a Bank of America research report has revealed that in September, the S&P 500 has lost 1.17% on average since 1928 and the broad-market index has ended in negative 56% of those years.
At this stage, it should be prudent to invest in low-beta (beta >0<1) high-yielding stocks with a favorable Zacks Rank in September. Five such stocks are: Archer-Daniels-Midland Co. (ADM - Free Report) , The Travelers Companies Inc. (TRV - Free Report) , Virtu Financial Inc. (VIRT - Free Report) , Paycom Software Inc. (PAYC - Free Report) and The Allstate Corp. (ALL - Free Report) . Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Volatility Reappears on Wall Street
This year, volatility has appeared on Wall Street since the first trading day of September. Market participants are worried about three immediate concerns.
First, the U.S.-Iran war escalated from Aug 30, for the first time since late July. As a result, crude oil prices spiked. The price of the U.S. benchmark — the West Texas Intermediate crude oil future — crossed $91 per barrel and the price of the global benchmark — the Brent crude oil future — crossed $95 per barrel.
Second, on Aug 28, in his remarks at the Fed’s annual symposium of economic policies in Jackson Hole, WY, Chairman Kevin Warsh warned about the sticky inflation rate. Higher crude oil prices will worsen the inflationary situation, forcing the Fed to hike the Fed fund rate anytime soon.
Third, the yield on the benchmark 10-Year U.S. Treasury Note reached its highest level since November 2023. Japan’s benchmark 10-Year Treasury Note yield touched 3% for the first time since 1996. The yield on U.K. 10-year government Gilt reached the highest level since June 2008. Yields on German and France Government bonds also moved higher.
Archer-Daniels-Midland Co.
Archer-Daniels-Midland has been benefiting from its strategic endeavors. ADM continues to advance its Optimize, Drive and Grow pillars, enhancing productivity, accelerating cost savings, expanding BioSolutions and leveraging digital tools to unlock margin opportunities and boost customer reach.
ADM’s Human Nutrition unit is gaining from Flavors, Decatur East and emerging demand for natural ingredients. In addition, a focus on higher-margin product lines and ongoing cost optimization further aided results. ADM is expanding profitability by complementing its core processing business with investments in biosolutions, precision fermentation and decarbonization capabilities.
Archer-Daniels-Midland has an expected revenue and earnings growth rate of 6.6% and 52.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.9% over the last 30 days. ADM has a beta of 0.62 and a current dividend yield of 2.56%.
The Travelers Companies Inc.
Travelers Companies’ has been benefiting from broad commercial and personal insurance franchises, disciplined underwriting and growing investment income. Second-quarter 2026 results highlighted the strength of TRV’s earnings base, with healthy underlying margins, lower catastrophe losses and favorable reserve development across all segments.
Continued technology investment, refined pricing and segmentation, a high-quality fixed-income portfolio and consistent capital returns should sustain TRV’s earnings growth and shareholder value.
Although weather volatility, loss-cost inflation, reinsurance expenses and changing pricing conditions remain risks, TRV’s operating strength and diversified business mix should help it navigate these pressures. Also, solid fundamentals and dependable execution support further share-price gains.
Travelers Companies has an expected revenue and earnings growth rate of -0.1% and 22.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last 30 days. TRV has a beta of 0.44 and a current dividend yield of 1.37%.
Virtu Financial Inc.
Virtu Financial is benefiting from an active trading backdrop that continues to support opportunity capture across equities, options, and other asset classes. VIRT is scaling its capital base and reinforcing returns by investing in technology and talent, which has supported higher daily adjusted net trading income through the cycle.
VIRT’s Execution Services is gaining relevance, extending diversification with expanding product penetration across workflow technology, algorithms, and capital markets activity. Balance sheet liquidity and disciplined leverage help fund reinvestment while supporting dividends and buybacks. In first-half 2026, VIRT’s adjusted EBITDA rose 38.9% annually.
Virtu Financial has an expected revenue and earnings growth rate of 21.9% and 22.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% over the last 30 days. VIRT has a beta of 0.62 and a current dividend yield of 1.47%.
Paycom Software Inc.
Paycom Software is benefiting from an employee-first, single-database HCM platform that pushes automation deeper into payroll and HR workflows. Rising adoption of IWant, Project Arc and new products such as Career and Succession Planning and Asset Management broadens PAYC’s platform and supports cross-selling.
PAYC’s revenue growth accelerated in the second-quarter 2026, while automation-driven efficiencies lifted margins and management raised its full-year outlook. Sales capacity expansion and faster rep productivity add to the longer-term opportunity. Aggressive buybacks also support per-share value creation.
Paycom Software has an expected revenue and earnings growth rate of 7.7% and 28.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 10.9% over the last 30 days. PAYC has a beta of 0.78 and a current dividend yield of 0.63%.
The Allstate Corp.
The Allstate delivered a second-quarter earnings beat, driven by sustained premium growth, expanding market share, and stronger underwriting performance. ALL’s Property-Liability premiums earned rose 4.7% year over year in the first half of 2026, while policies in force increased 2.6%. Protection Services revenues grew 7.5%, driven by Allstate Protection Plans and Roadside.
ALL’s Portfolio streamlining, Transformative Growth, and cost discipline are also strengthening profitability, with the Property-Liability underlying combined ratio improving to 79.8% in the first half of 2026. Strong cash generation supports shareholder returns, including $1.3 billion returned in the second quarter of 2026.
The Allstate has an expected revenue and earnings growth rate of 5% and -0.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1% over the last seven days. ALL has a beta of 0.15 and a current dividend yield of 1.68%.