History Says September Is the Worst Month for Stocks. Here’s 1 Stock With a Major Catalyst This Month to Buy and Hold

Equity markets have historically delivered lower returns in September than in other months, a phenomenon known as the September effect. Will the same thing happen this year? It's hard to say, but it's also not particularly important for investors focused on the long game. There are plenty of stocks worth buying that could beat the broader market over the long run, regardless of what happens this month. Here's one great example: Apple (NASDAQ:AAPL). The tech giant has a rock-solid business, excellent prospects, and a major potential catalyst coming up (very) soon.

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The start of a new era

On Sept. 1, Tim Cook, the longtime CEO of Apple, stepped down from his position and became executive chairman of the company's board of directors. Apple's new CEO is John Ternus, the former vice president of hardware engineering. Since Tim Cook led Apple through a period in which it crushed broader equity indexes, many investors were not thrilled about his decision to step down as CEO.

However, John Ternus could start his tenure as CEO with a bang and help investors regain some confidence about the company’s outlook. On Sept. 9, the company will unveil a new lineup of products, probably including the newest iPhone. This event is always highly anticipated, but it is even more so this year, and not just because of the recent CEO change. Apple has reportedly been working on a foldable iPhone for some time and might finally reveal it to the world. A foldable iPhone could meaningfully move the needle for Apple.

Foldable smartphones launched by other brands have proved popular. Yet, the category still accounts for just 2% of the smartphone market, according to some estimates. There is plenty of room to grow, and if Apple launches a high-quality foldable phone, it could strengthen its ecosystem, enable it to retain more customers, and attract new ones.

The long-term view

Apple's foldable iPhone may well disappoint investors and analysts, leading to a meaningful dip in the company's share price following its September event. Of course, the opposite could also happen. But it's important not to be too concerned with the stock's short-term movements. Whatever happens on Sept. 9, Apple will almost certainly still be an excellent stock to hold onto for a while. Here are three reasons why.

First, the company's financial results have remained strong in recent years despite significant headwinds, including tariffs. In the third quarter of its fiscal year 2026, ended June 27, Apple's revenue climbed 16% year over year to $109.4 billion. Revenue growth has rebounded meaningfully in recent quarters, providing evidence that the iPhone can still drive strong top-line increases.

AAPL Revenue (Quarterly YoY Growth) data by YCharts

The company's earnings per share came in at $2.02, up 29% compared to the year-ago period. Apple's shares fell following its latest update, largely due to concerns about supply constraints. Still, the tech leader has performed fairly well in recent quarters, especially considering the broader economic environment. That speaks to the resilience of its underlying business. Second, Apple has a massive user ecosystem. It boasts an installed base of more than 2.5 billion devices, providing significant monetization opportunities.

Apple is already squeezing plenty of money out of its ecosystem with the many subscriptions it offers. But there is room for improvement, and as the company's high-margin services segment continues to grow, expect it to lift company-wide margins. Third, Apple generates more than enough cash to pour into R&D. The company's trailing-12-month free cash flow is $136.68 billion, up 38.4% year over year.

That grants Apple the flexibility to pursue opportunities in potentially lucrative areas, including artificial intelligence, while still rewarding shareholders with share buybacks and dividend increases. All of these factors make Apple an attractive stock to buy, regardless of how it performs this month.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.