Breaking News

Deep Dive: As S&P 500 rises to a record, these laggards are expected to come roaring back

The S&P 500 Index is back to its record-setting techniques.

The benchmark for large-company U.S. stocks hit a remaining listing Friday and again Monday after tumbling nine% from Jan. 26 thru Feb. nine. Since then, the index were grinding upper in fits and starts.

There are still plenty of large-cap losers this yr — and a majority of analysts are expecting a few of them may make you a tidy profit over the following 12 months.

First we’ll listing this yr’s largest stock losers, and then we’ll pare the listing to people who are still preferred by maximum Wall Street analysts.

The losers

Here are the 28 S&P 500 SPX, +Zero.77%  stocks which might be down at least 20% in 2018 (together with reinvested dividends):

Company Ticker Industry Total return - 2018 thru Aug. 24 Change in EPS - most recent reported quarter from year-earlier quarter Change in gross sales - most recent reported quarter from year-earlier quarter
L Brands Inc. LB, +Zero.07% Apparel/Footwear Retail -52% -25% eight%
Dentsply Sirona Inc. XRAY, +Zero.05% Medical Specialties -41% nine% 5%
Coty Inc. Class A COTY, +1.34% Household/Personal Care -39% -41% 3%
Unum Group UNM, +1.83% Life/Health Insurance -34% 21% 2%
Invesco Ltd. IVZ, +2.49% Investment Managers -32% 2% 7%
Mohawk Industries Inc. MHK, +1.32% Home Furnishings -31% -25% 5%
Cimarex Energy Co. XEC, +Zero.33% Oil & Gas Production -31% 45% 22%
Brighthouse Financial Inc. BHF, +1.60% Life/Health Insurance -29% -197% -1%
Symantec Corp. SYMC, +1.52% Software -29% -55% -2%
Newell Brands Inc NWL, +3.00% Industrial Conglomerates -29% -41% -13%
Affiliated Managers Group Inc. AMG, +Zero.43% Investment Managers -28% -3% 3%
General Electric Co. GE, +2.16% Industrial Conglomerates -27% -47% 3%
Incyte Corp. INCY, +3.25% Biotechnology -26% -500% 60%
Goodyear Tire & Rubber Co. GT, +3.39% Automotive Aftermarket -26% 13% Four%
Dish Network Corp. Class A DISH, +Zero.85% Cable/Satellite TV -26% 822% -5%
American Airlines Group Inc. AAL, +1.80% Airlines -25% -25% Four%
Nielsen Holdings PLC NLSN, +Zero.49% Advertising/Marketing Services -25% -46% Zero%
Albemarle Corp. ALB, +Zero.93% Chemicals: Specialty -24% 197% 16%
Whirlpool Corp. WHR, +2.89% Electronics/Appliances -24% -477% -Four%
Freeport-McMoRan Inc. FCX, +1.80% Precious Metals -23% 235% 42%
Philip Morris International Inc. PM, +Zero.72% Tobacco -23% 24% 12%
IPG Photonics Corp. IPGP, +Zero.66% Electronic Equipment/Instruments -22% 16% 12%
Kraft Heinz Co. KHC, +Zero.91% Food: Major Diversified -22% -34% 1%
Tyson Foods Inc. Class A TSN, -Zero.44% Food: Meat/Fish/Dairy -21% 21% 2%
Sealed Air Corp. SEE, +2.28% Containers/Packaging -20% 14% eight%
Fortune Brands Home & Security Inc. FBHS, +Zero.98% Building Products -20% Zero% 5%
General Mills Inc. GIS, -Zero.24% Food: Major Diversified -20% -13% 2%
Principal Financial Group Inc. PFG, +1.68% Life/Health Insurance -20% 49% 1%
Source: FactSet

You can click on the tickers for more information about each company, together with news, income, charts, price-to-earnings and other ratios and financials.

The income and gross sales numbers can’t all the time point to the the reason why many of these stocks have fallen so far this yr. L Brands LB, +Zero.07% the worst performer in the S&P 500 in 2018, minimize its income guidance Aug. 23 for the second time this yr.

Also see: L Brands stock extends selloff to eight-year low after Morgan Stanley cuts score

There are many reasons stocks in the sort of various crew of industries have declined considerably this yr. Newell Brands NWL, +3.00% Dentsply Sirona XRAY, +Zero.05% Coty COTY, +1.34% and Sealed Air SEE, +2.28%  are among S&P 500 corporations with prime percentages of gross sales outdoor the U.S., which is the most important concern all over times of currency-related turmoil in global markets.

The losers cherished by analysts

Starting with the above crew of 28 corporations, we narrowed the listing to 13 with majority “buy” or equivalent scores from sell-side analysts polled by FactSet. Here they are, sorted by how a lot the analysts believe the stocks would possibly rise over the following 12 months, in keeping with consensus fee targets:

Company  Ticker Share 'buy' scores Share impartial scores Share 'promote' scores Closing fee - Aug. 24 Consensus goal Implied upside potential
Cimarex Energy Co. XEC, +Zero.33% 61% 39% Zero% $83.90 $121.78 45%
Affiliated Managers Group Inc. AMG, +Zero.43% 82% 18% Zero% $147.55 $194.00 31%
IPG Photonics Corp. IPGP, +Zero.66% 78% 22% Zero% $166.91 $219.25 31%
American Airlines Group Inc. AAL, +1.80% 72% 28% Zero% $38.82 $50.88 31%
Albemarle Corp. ALB, +Zero.93% 73% 23% Four% $96.00 $124.77 30%
Invesco Ltd. IVZ, +2.49% 56% 44% Zero% $24.14 $30.90 28%
Incyte Corp. INCY, +3.25% 74% 26% Zero% $70.08 $85.56 22%
Fortune Brands Home & Security Inc. FBHS, +Zero.98% 60% 35% 5% $54.29 $66.00 22%
Mohawk Industries Inc. MHK, +1.32% 82% 18% Zero% $190.41 $227.42 19%
Philip Morris International Inc. PM, +Zero.72% 59% 36% 5% $79.69 $93.27 17%
Kraft Heinz Co. KHC, +Zero.91% 61% 30% nine% $59.03 $68.85 17%
Tyson Foods Inc. Class A TSN, -Zero.44% 56% 38% 6% $63.12 $70.27 11%
Nielsen Holdings PLC NLSN, +Zero.49% 69% 31% Zero% $26.47 $28.71 eight%
Source: FactSet

While one can by no means really are expecting that a downtrodden stock will come right back in only a yr’s time, there’s certainly that those stocks have the backing of analysts and associated brokers at their companies. So if you are on the lookout for a bounce-back play and are excited by any of the names on this listing, do your personal research to shape an opinion about how neatly an organization would possibly carry out over the following 5 to 10 years.

Also see: REIT prices push upper despite the Federal Reserve’s interest-rate increases

Create an e-mail alert for Philip van Doorn’s Deep Dive columns right here.

Philip van Doorn covers various funding and business subjects. He has previously labored as a senior analyst at TheStreet.com. He additionally has revel in in community banking and as a credit score analyst at the Federal Home Loan Bank of New York.

We Want to Hear from You

Join the conversation