You may be surprised at how many S&P 500 stocks have fallen at least 50% from record highs
- Still, analysts have favorable views on some of them -
By Philip van Doorn, MarketWatch
Even as the bull market soon turns 10 years old, you might be surprised about how many stocks are trading much lower than their all-time highs. Taking a closer look can provide food for thought for bargain hunters.
In Seeking Alpha last week, Chuck Carnevale made the case for Whirlpool as ”an uncommon value opportunity” despite “some operating challenges.” The stock closed at $105.37 on Oct. 15, down 51% from its all-time closing high of $215 on March 2, 2015. It also features a dividend yield of 4.37%. The quarterly dividend of $1.15 a share has more than doubled over the past six years.
With Whirlpool down so much from its all-time closing high, during a period in which the S&P 500 Index had risen 30% (excluding dividends), you might be wondering how many stocks may also be way off their highs.
Here are some interesting numbers about the S&P 500, according to data provided by FactSet.
- Among the S&P 500, 250 stocks were down 20% or more from their all-time closing highs (adjusted for splits and spin-offs) as of the close on Oct. 15.
- 162 were down at least 30% from their all-time highs.
- 113 were down at least 40% from their all-time highs.
- 69 were down at least 50% from their all-time highs.
Those are a lot of stocks. Some of them hit their all-time (adjusted) closing highs a long time ago. An example is American International Group which was bailed out by the U.S. government in 2008. The government eventually was made whole after its preferred shares were converted to common shares and sold to the public at a profit. The net effect of the recapitalization by the government was the near-total wipe-out of the value of the company’s pre-crisis shares. So the stock is down 97% from its closing high (again, adjusted for splits, reverse splits and spin-offs) of $1,737.37 on Feb. 8, 2000, according to FactSet.
From our Whirlpool inspiration, we decided to pare the “down 50% or more” group to the 26 S&P 500 companies that hit their all-time adjusted closing highs within the past five years. The list is sorted by how much each stock has declined from its high:
|
Company |
Ticker |
Industry |
Closing price - Oct. 15 |
Adjusted all-time high closing price |
Date of adjusted all-time high |
Decline from all-time high |
Price change - 2018 through Oct. 15 |
|
L Brands Inc. |
Apparel/Footwear Retail |
$31.58 |
$100.22 |
11/04/2015 |
-68% |
-48% |
|
|
Newell Brands Inc |
Industrial Conglomerates |
$17.43 |
$54.89 |
08/15/2016 |
-68% |
-44% |
|
|
Coty Inc. Class A |
Household/Personal Care |
$11.10 |
$32.68 |
07/01/2015 |
-66% |
-44% |
|
|
Stericycle Inc. |
Services to the Health Industry |
$52.52 |
$150.84 |
10/19/2015 |
-65% |
-23% |
|
|
Under Armour Inc. Class A |
Apparel/Footwear |
$18.76 |
$53.78 |
09/17/2015 |
-65% |
30% |
|
|
Perrigo Co. Plc |
Pharmaceuticals |
$71.82 |
$203.69 |
04/14/2015 |
-65% |
-18% |
|
|
Viacom Inc. Class B |
Movies/Entertainment |
$31.78 |
$88.90 |
03/10/2014 |
-64% |
3% |
|
|
Kinder Morgan Inc. Class P |
Oil and Gas Pipelines |
$17.54 |
$44.57 |
04/23/2015 |
-61% |
-3% |
|
|
Noble Energy Inc. |
Oil and Gas Production |
$31.90 |
$79.23 |
06/23/2014 |
-60% |
9% |
|
|
Incyte Corp. |
Biotechnology |
$62.03 |
$152.66 |
03/15/2017 |
-59% |
-35% |
|
|
TripAdvisor Inc. |
Other Consumer Services |
$45.00 |
$110.21 |
06/27/2014 |
-59% |
31% |
|
|
Dish Network Corp. Class A |
Cable/Satellite TV |
$33.68 |
$79.41 |
11/28/2014 |
-58% |
-29% |
|
|
Mylan N.V. |
Pharmaceuticals |
$32.37 |
$76.06 |
04/24/2015 |
-57% |
-23% |
|
|
EQT Corp. |
Oil and Gas Production |
$46.95 |
$109.84 |
05/02/2014 |
-57% |
-18% |
|
|
Williams Cos. |
Oil and Gas Pipelines |
$26.77 |
$60.86 |
06/22/2015 |
-56% |
-12% |
|
|
Nektar Therapeutics |
Biotechnology |
$49.08 |
$108.44 |
03/08/2018 |
-55% |
-18% |
|
|
Macy's Inc. |
Department Stores |
$33.39 |
$72.80 |
07/16/2015 |
-54% |
33% |
|
|
Wynn Resorts Ltd. |
Casinos/Gaming |
$114.67 |
$247.95 |
03/04/2014 |
-54% |
-32% |
|
|
Nielsen Holdings Plc |
Advertising/Marketing Services |
$26.26 |
$55.81 |
07/22/2016 |
-53% |
-28% |
|
|
Western Digital Corp. |
Computer Peripherals |
$54.50 |
$114.28 |
12/22/2014 |
-52% |
-31% |
|
|
Hanesbrands Inc. |
Apparel/Footwear |
$16.63 |
$34.58 |
04/23/2015 |
-52% |
-20% |
|
|
National Oilwell Varco Inc. |
Oilfield Services/Equipment |
$42.18 |
$86.43 |
08/29/2014 |
-51% |
17% |
|
|
Whirlpool Corp. |
Electronics/Appliances |
$105.37 |
$215.00 |
03/02/2015 |
-51% |
-38% |
|
|
Franklin Resources Inc. |
Investment Managers |
$28.95 |
$58.84 |
12/08/2014 |
-51% |
-33% |
|
|
Marathon Oil Corp. |
Oil and Gas Production |
$20.84 |
$41.69 |
08/29/2014 |
-50% |
23% |
|
|
Schlumberger Ltd. |
Oilfield Services/Equipment |
$59.55 |
$117.95 |
06/30/2014 |
-50% |
-12% |
|
|
Source: FactSet |
|||||||
You can click on the tickers for more information about each company, including news, price ratios, charts and financials.
Here’s the list again, this time sorted by the percentage of “buy” or equivalent ratings among sell-side analysts:
|
Company |
Ticker |
Share 'buy' ratings |
Share neutral ratings |
Share 'sell' ratings |
Closing price - Oct. 25 |
Consensus price target |
Implied 12-month upside potential |
|
Kinder Morgan Inc. Class P |
78% |
22% |
0% |
$17.54 |
$21.58 |
23% |
|
|
Williams Cos. |
73% |
27% |
0% |
$26.77 |
$33.70 |
26% |
|
|
Nektar Therapeutics |
70% |
20% |
10% |
$49.08 |
$81.11 |
65% |
|
|
EQT Corp. |
67% |
33% |
0% |
$46.95 |
$62.82 |
34% |
|
|
Incyte Corp. |
64% |
36% |
0% |
$62.03 |
$83.79 |
35% |
|
|
Marathon Oil Corp. |
62% |
38% |
0% |
$20.84 |
$24.91 |
20% |
|
|
Noble Energy Inc. |
61% |
33% |
6% |
$31.90 |
$42.33 |
33% |
|
|
Nielsen Holdings Plc |
61% |
39% |
0% |
$26.26 |
$28.75 |
9% |
|
|
Western Digital Corp. |
60% |
40% |
0% |
$54.50 |
$97.31 |
79% |
|
|
Schlumberger Ltd. |
57% |
43% |
0% |
$59.55 |
$74.17 |
25% |
|
|
Mylan N.V. |
55% |
45% |
0% |
$32.37 |
$44.94 |
39% |
|
|
Stericycle Inc. |
46% |
54% |
0% |
$52.52 |
$75.75 |
44% |
|
|
Dish Network Corp. Class A |
43% |
43% |
14% |
$33.68 |
$45.95 |
36% |
|
|
Wynn Resorts Ltd. |
42% |
58% |
0% |
$114.67 |
$171.94 |
50% |
|
|
Hanesbrands Inc. |
41% |
59% |
0% |
$16.63 |
$21.40 |
29% |
|
|
Coty Inc. Class A |
33% |
56% |
11% |
$11.10 |
$13.83 |
25% |
|
|
Viacom Inc. Class B |
31% |
62% |
7% |
$31.78 |
$34.74 |
9% |
|
|
National Oilwell Varco Inc. |
27% |
66% |
7% |
$42.18 |
$45.24 |
7% |
|
|
Whirlpool Corp. |
27% |
64% |
9% |
$105.37 |
$136.71 |
30% |
|
|
L Brands Inc. |
24% |
62% |
14% |
$31.58 |
$32.48 |
3% |
|
|
Macy's Inc. |
20% |
65% |
15% |
$33.39 |
$36.09 |
8% |
|
|
UnderArmour Inc. Class A |
19% |
56% |
25% |
$18.76 |
$19.21 |
2% |
|
|
Perrigo Co. Plc |
18% |
76% |
6% |
$71.82 |
$80.46 |
12% |
|
|
Newell Brands Inc |
14% |
86% |
0% |
$17.43 |
$24.45 |
40% |
|
|
TripAdvisor Inc. |
14% |
64% |
22% |
$45.00 |
$48.71 |
8% |
|
|
Franklin Resources Inc. |
7% |
60% |
33% |
$28.95 |
$31.79 |
10% |
|
|
Source: FactSet |
|||||||
If you are looking for bargain stocks, you might find some names here to help with your research. But you had better be prepared to be patient after digging deeply and forming your own opinion about a company’s strategy and its ability to compete over the next five to 10 years.
From MarketWatch