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September Syndrome in Full Swing: 3 Picks to Safeguard Your Portfolio
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Key Takeaways
Archer-Daniels-Midland raised 2026 earnings guidance as crushing and ethanol outlooks improved.
Amgen lifted 2026 revenue and adjusted earnings guidance on strength from key medicines.
Sunoco raised 2026 adjusted EBITDA guidance by $400 million to $3.5-$3.7 billion.
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 the negative in 56% of those years.
This year multiple concerns have unnerved market participants. The crude oil prices – both WTI and Brent – hit $106 and $108 per barrel, respectively owing to prolonged geopolitical conflicts in the Middle East. Soaring yields on U.S. Treasury Notes with 10-Year bond hit a 19-year high, sticky U.S. inflation and high expectations that the Fed will hike the benchmark lending rate for the first time in three years in September rattled investors sentiment.
At this stage, it should be prudent to invest in low-beta (beta >0<1) high-yielding defensive stocks with a favorable Zacks Rank. Three such stocks are: Archer-Daniels-Midland Co. (ADM - Free Report) , Amgen Inc. (AMGN - Free Report) and Sunoco LP (SUN - Free Report) .
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Archer-Daniels-Midland Co.
Zacks Rank #1 Archer-Daniels-Midland 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, focus on higher-margin product lines and ongoing cost optimization aided results. ADM is expanding profitability by complementing its core processing business with investments in biosolutions, precision fermentation and decarbonization capabilities. ADM currently has a dividend yield of 2.41% and a beta of 0.62.
Strong Guidance
Archer-Daniels-Midland raised its 2026 adjusted earnings guidance to approximately $5.15-$5.60 per share from the previous range of $4.15-$4.70. The revised outlook assumes year-over-year improvement in crushing and ethanol, supported by disciplined execution and a constructive margin environment. Management tied the stronger outlook primarily to finalized renewable volume obligations under the U.S. Renewable Fuel Standard, global trade dynamics and higher energy prices. The company continues to project 2026 capital expenditures of $1.3-$1.5 billion while monitoring macroeconomic, geopolitical, policy and trade conditions.
Attractive Valuation
The stock has a forward P/E of 16.55X compared with the industry’s P/E of 12.84X and the S&P 500’s P/E of 18.08X. It has a P/S of 0.51X compared with the industry’s P/S of 0.84X and the S&P 500’s P/S of 3.00X. ADM has a P/B of 1.77X compared with the industry’s P/B of 0.89X and the S&P 500’s P/B of 3.62X.
Solid Estimate Revisions
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 8.5% over the last 60 days.
ADM has an expected revenue and earnings growth rate of 1.4% and 3.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 8.4% over the last 60 days.
Image Source: Zacks Investment Research
Amgen Inc.
Zacks Rank #2 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, more than offsetting declining revenues from oncology biosimilars and mature products like Enbrel.
New biosimilar launches are also contributing to top-line growth. Furthermore, AMGN has several key pipeline assets, with a primary focus on the obesity candidate, MariTide. AMGN currently has a dividend yield of 2.64% and a beta of 0.43.
Strong Guidance
Amgen raised its total revenue guidance for 2026 to a range of $38.2 billion to $39.4 billion. The company previously expected revenues between $37.1 billion and $38.5 billion. Adjusted earnings guidance was increased to $22.30-$23.50 per share from the prior range of $21.70-$23.10.
Other revenues are expected to be approximately $1.9 billion in 2026 compared with the prior expectation of $1.7 billion to $1.8 billion. Adjusted R&D is expected to increase in a high single-digit range year over year in 2026.
Adjusted operating margin is expected to be 45% to 46% for 2026. The adjusted tax rate is expected to be in the range of 15.0% to 16.5%. Capital expenditures are expected to be approximately $2.6 billion. Share repurchases are expected not to exceed $3 billion in 2026.
Attractive Valuation
The stock has a forward P/E of 16.63X compared with the industry’s P/E of 22.81X and the S&P 500’s P/E of 18.08X. It has a P/S of 5.41X compared with the industry’s P/S of 6.45X and the S&P 500’s P/S of 3.00X. AMGN has a P/B of 17.65X compared with the industry’s P/B of 2.54X and the S&P 500’s P/B of 3.62X.
Solid Estimate Revisions
Amgen has an expected revenue and earnings growth rate of 5.6% and 5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.1% over the last seven days.
AMGN has an expected revenue and earnings growth rate of 2.9% and 6.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.9% over the last seven days.
Image Source: Zacks Investment Research
Sunoco LP
Zacks Rank #2 Sunoco’s scaled fuel distribution platform, broader midstream network and acquisitions support recurring cash generation across a more diversified footprint. SUN’s second-quarter 2026 execution and a higher full-year adjusted EBITDA outlook reinforce the benefits of Parkland, TanQuid and ongoing bolt-on investment.
SUN’s Distribution growth remains attractive, backed by improved coverage and leverage below management’s long-term target. SUN’s pipeline and terminal assets add fee-based earnings that complement fuel distribution and refinery exposure. SUN currently has a dividend yield of 5.07% and a beta of 0.41.
Strong Guidance
Sunoco increased its 2026 adjusted EBITDA guidance by $400 million to $3.5-$3.7 billion. Management expects all four operating segments to continue performing well during the second half of the year.
Attractive Valuation
The stock has a forward P/E of 8.26X compared with the industry’s P/E of 12.53X and the S&P 500’s P/E of 18.08X. It has a P/S of 0.41X compared with the industry’s P/S of 0.71X and the S&P 500’s P/S of 3.00X. SUN has a P/B of 2.37X compared with the industry’s P/B of 3.53X and the S&P 500’s P/B of 3.62X.
Solid Estimate Revisions
Sunoco has an expected revenue and earnings growth rate of 83.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 21% over the last 60 days.
SUN has an expected revenue and earnings growth rate of 1.9% and 9.9%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 6.3% over the last 30 days.
View the Zacks #1 Rank List
Image: Bigstock
September Syndrome in Full Swing: 3 Picks to Safeguard Your Portfolio
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 the negative in 56% of those years.
This year multiple concerns have unnerved market participants. The crude oil prices – both WTI and Brent – hit $106 and $108 per barrel, respectively owing to prolonged geopolitical conflicts in the Middle East. Soaring yields on U.S. Treasury Notes with 10-Year bond hit a 19-year high, sticky U.S. inflation and high expectations that the Fed will hike the benchmark lending rate for the first time in three years in September rattled investors sentiment.
At this stage, it should be prudent to invest in low-beta (beta >0<1) high-yielding defensive stocks with a favorable Zacks Rank. Three such stocks are: Archer-Daniels-Midland Co. (ADM - Free Report) , Amgen Inc. (AMGN - Free Report) and Sunoco LP (SUN - Free Report) .
Year to date, these stocks have provided double-digit returns. Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Archer-Daniels-Midland Co.
Zacks Rank #1 Archer-Daniels-Midland 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, focus on higher-margin product lines and ongoing cost optimization aided results. ADM is expanding profitability by complementing its core processing business with investments in biosolutions, precision fermentation and decarbonization capabilities. ADM currently has a dividend yield of 2.41% and a beta of 0.62.
Strong Guidance
Archer-Daniels-Midland raised its 2026 adjusted earnings guidance to approximately $5.15-$5.60 per share from the previous range of $4.15-$4.70. The revised outlook assumes year-over-year improvement in crushing and ethanol, supported by disciplined execution and a constructive margin environment.
Management tied the stronger outlook primarily to finalized renewable volume obligations under the U.S. Renewable Fuel Standard, global trade dynamics and higher energy prices. The company continues to project 2026 capital expenditures of $1.3-$1.5 billion while monitoring macroeconomic, geopolitical, policy and trade conditions.
Attractive Valuation
The stock has a forward P/E of 16.55X compared with the industry’s P/E of 12.84X and the S&P 500’s P/E of 18.08X. It has a P/S of 0.51X compared with the industry’s P/S of 0.84X and the S&P 500’s P/S of 3.00X. ADM has a P/B of 1.77X compared with the industry’s P/B of 0.89X and the S&P 500’s P/B of 3.62X.
Solid Estimate Revisions
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 8.5% over the last 60 days.
ADM has an expected revenue and earnings growth rate of 1.4% and 3.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 8.4% over the last 60 days.
Image Source: Zacks Investment Research
Amgen Inc.
Zacks Rank #2 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, more than offsetting declining revenues from oncology biosimilars and mature products like Enbrel.
New biosimilar launches are also contributing to top-line growth. Furthermore, AMGN has several key pipeline assets, with a primary focus on the obesity candidate, MariTide. AMGN currently has a dividend yield of 2.64% and a beta of 0.43.
Strong Guidance
Amgen raised its total revenue guidance for 2026 to a range of $38.2 billion to $39.4 billion. The company previously expected revenues between $37.1 billion and $38.5 billion. Adjusted earnings guidance was increased to $22.30-$23.50 per share from the prior range of $21.70-$23.10.
Other revenues are expected to be approximately $1.9 billion in 2026 compared with the prior expectation of $1.7 billion to $1.8 billion. Adjusted R&D is expected to increase in a high single-digit range year over year in 2026.
Adjusted operating margin is expected to be 45% to 46% for 2026. The adjusted tax rate is expected to be in the range of 15.0% to 16.5%. Capital expenditures are expected to be approximately $2.6 billion. Share repurchases are expected not to exceed $3 billion in 2026.
Attractive Valuation
The stock has a forward P/E of 16.63X compared with the industry’s P/E of 22.81X and the S&P 500’s P/E of 18.08X. It has a P/S of 5.41X compared with the industry’s P/S of 6.45X and the S&P 500’s P/S of 3.00X. AMGN has a P/B of 17.65X compared with the industry’s P/B of 2.54X and the S&P 500’s P/B of 3.62X.
Solid Estimate Revisions
Amgen has an expected revenue and earnings growth rate of 5.6% and 5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.1% over the last seven days.
AMGN has an expected revenue and earnings growth rate of 2.9% and 6.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.9% over the last seven days.
Image Source: Zacks Investment Research
Sunoco LP
Zacks Rank #2 Sunoco’s scaled fuel distribution platform, broader midstream network and acquisitions support recurring cash generation across a more diversified footprint. SUN’s second-quarter 2026 execution and a higher full-year adjusted EBITDA outlook reinforce the benefits of Parkland, TanQuid and ongoing bolt-on investment.
SUN’s Distribution growth remains attractive, backed by improved coverage and leverage below management’s long-term target. SUN’s pipeline and terminal assets add fee-based earnings that complement fuel distribution and refinery exposure. SUN currently has a dividend yield of 5.07% and a beta of 0.41.
Strong Guidance
Sunoco increased its 2026 adjusted EBITDA guidance by $400 million to $3.5-$3.7 billion. Management expects all four operating segments to continue performing well during the second half of the year.
Attractive Valuation
The stock has a forward P/E of 8.26X compared with the industry’s P/E of 12.53X and the S&P 500’s P/E of 18.08X. It has a P/S of 0.41X compared with the industry’s P/S of 0.71X and the S&P 500’s P/S of 3.00X. SUN has a P/B of 2.37X compared with the industry’s P/B of 3.53X and the S&P 500’s P/B of 3.62X.
Solid Estimate Revisions
Sunoco has an expected revenue and earnings growth rate of 83.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 21% over the last 60 days.
SUN has an expected revenue and earnings growth rate of 1.9% and 9.9%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 6.3% over the last 30 days.
Image Source: Zacks Investment Research