History Says Avoid This Software Stock in September

As September begins, the finance team recommends steering clear of one particular software stock for the month ahead. According to recent analysis, Adobe Inc (NASDAQ:ADBE) has a track record of underperforming in the historically challenging September trading period. Over the past decade, ADBE has typically seen an average loss of 6.2% during this month, with just two instances of finishing higher.

Currently, the stock is down 1.6% to $288.04, mirroring the data's prediction of a potential pullback that could push it back near $271. Despite this, the stock has managed a three-day winning streak, but momentum appears to be fading near the $300 level. Additionally, long-term support at the 320-day moving average remains a concern.

Year-to-date, ADBE has already fallen 17.7%. Options traders, however, remain optimistic, evidenced by the stock's 50-day call/put volume ratio of 2.21 at major exchanges, which is higher than 82% of readings from the past year. Should this bullish sentiment change, it could exacerbate the downward pressure on the shares.