I’ve been busy looking for FTSE 100 and FTSE 250 stocks that are due to release trading statements next month. More specifically, I’ve been searching for shares that might soar in value after updating the market.

My quest has — as you may expect — also thrown up some shares I feel could sink in October. These include:

Want to know why these FTSE stocks could drop and aren’t worth considering? Read on.

Double trouble

Wetherspoons is famous for selling its ales and food below the market average. Could this help the pub operator defend earnings as consumers feel the pinch? It’s possible, although the risks of another disappointing trading update on 2 October are high.

On 22 July, Wetherspoons warned its upcoming full-year statement will miss prior profit forecasts. It cited “marginally lower sales than anticipated in the final quarter,” but that’s not all. It also warned of “higher costs in the areas of food, labour, repairs, energy and business rates” that are hitting margins.

I’m not expecting things to get easier any time soon as inflation rises, hitting drinkers in the pocket and increasing costs. Friday’s update could prove a proper pre-Halloween horror story for Wetherspoons and its share price.

Alarm bells

I continue to hold shares in several UK housebuilders. My view is that companies like Bellway will recover over time as the country’s expanding population drives demand for new homes. Prime Minister Andy Burnham’s ‘Your First Home’ scheme for first-time buyers could also give sales a leg-up.

But things are looking increasingly gloomy for the housebuilders in the short term. I think this could lead to some new nasties coming emerging when Bellway updates the market with full-year results on 13 October. Fresh data shows how mortgage approvals has collapsed to 32-month lows as higher mortgage costs bite.

That’s not all threatening housing stocks today, with increasing build costs hitting their earnings. Reflecting current pressures, Bellway slashed its profit forecasts in 11 August’s half-year update to £320m. This was at the lower end of the FTSE 250 firm’s forecasts. Could a repeat be around the corner?

A falling FTSE stock?

Tesco is the final share I’m keen to avoid in October. Like Wetherspoons, it’s in serious danger as consumers trim back spending. Demand for its general merchandise lines could be especially badly affected, although weakness across the business is possible.

The food retailer has already disappointed investors this year, announcing Q1 like-for-like sales growth of 1% on 11 June. This not only missed broker forecasts of a 1.4% to 1.5% increase. It also marked a deceleration from recent quarters, and since then shopper confidence has dropped further as inflation has risen.

I think the FTSE 100 firm’s half-year update on 8 October could underwhelm again, hitting its share price. Though Tesco’s Clubcard loyalty scheme should support trading, I feel it’s far too risky to consider today.

Should you invest £5,000 in Bellway P.l.c. right now?

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Royston Wild does not hold any positions in the companies mentioned.