Is It Time to Buy the S&P 500’s 3 Worst-Performing September Stocks?

September was the S&P 500 index’s worst month since March 2020. Investors grew jittery over a possible government shutdown, inflation, and a sluggish economic recovery, leading the index to drop 4.7%. The biggest losers for the month were FedEx (NYSE:FDX), Las Vegas Sands (NYSE:LVS), and Wynn Resorts (NASDAQ:WYNN).

Could the September slump represent a buying opportunity? Read on to learn whether these three stocks are worthy of a place in your investment portfolio.

1. FedEx

FedEx was a winning stay-at-home stock in 2020. But its shares plunged by 17.3% in September, as it became clear that the pandemic-related side effects the parcel delivery giant faces — most notably, a worker shortage and supply chain inefficiencies — aren’t going away anytime soon. Despite growing its revenue by 14% in its first quarter of fiscal year 2022, FedEx still missed earnings expectations for the quarter because of rising costs. FedEx reduced earnings guidance for the remainder of fiscal 2022 and declined to provide guidance for its second quarter. 

But if you’re looking for a value stock to add to your portfolio, FedEx could be worthy of consideration. As of Oct. 1, FedEx’s one-year forward price-to-earnings ratio is 9.8, compared to 15.2 for rival United Parcel Service. As Fool contributor Daniel Foelber pointed out, FedEx has also significantly improved its balance sheet in the past three years, reducing its reliance on debt. 

It’s also important to note that FedEx’s challenges are mostly related to broader economic factors than its business fundamentals. Businesses everywhere are grappling with labor shortages, supply chain troubles, and soaring costs.

Even if worker shortages and supply chain bottlenecks ease during the second half of fiscal 2022, as management predicts, FedEx could be in for a difficult peak holiday season. Its plan to hire 90,000 workers ahead of the holidays seems iffy at best, given that FedEx estimates labor shortages cost the company $450 million in earnings last quarter.

While FedEx could be in for a continued rough patch in the next few months it could also benefit from larger long-term trends, like the growth in the domestic and international parcel market. The stock could also be a good bet if you’re bullish on overall economic recovery, as people tend to buy and sell more and, therefore, ship more when the economy is strong.

2. Las Vegas Sands

Pandemic-related closures were brutal to casino operators like Las Vegas Sands. But the news that pushed Las Vegas Sands shares down 17% in September was largely unrelated to COVID-19.

On Sept. 14, the Chinese government announced a 45-day public consultation period to review sweeping proposed casino regulations for the enclave of Macao, which is widely considered the gambling capital of the globe. The Bloomberg Intelligence Macau Gaming Composite, an index of the city’s six major gaming…