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Philip van Doorn

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Aug. 29, 2018, 2:32 p.m. EDT

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

Analysts see double-digit upside for many of this year’s worst-performing large-cap stocks

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By Philip van Doorn, MarketWatch


Bloomberg
Shares of American Airlines are down 25% this year.

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

The benchmark for large-company U.S. stocks hit a closing record Friday and again Monday after tumbling 9% from Jan. 26 through Feb. 9. Since then, the index had been grinding higher in fits and starts.

There are still plenty of large-cap losers this year — and a majority of analysts predict some of them may make you a tidy profit over the next 12 months.

First we’ll list this year’s biggest stock losers, and then we’ll pare the list to those that are still favored by most Wall Street analysts.

The losers

Here are the 28 S&P 500 /zigman2/quotes/210599714/realtime SPX -0.11%  stocks that are down at least 20% in 2018 (including reinvested dividends):

Company Ticker Industry Total return - 2018 through Aug. 24 Change in EPS - most recent reported quarter from year-earlier quarter Change in sales - most recent reported quarter from year-earlier quarter
L Brands Inc. /zigman2/quotes/202062875/composite LB Apparel/Footwear Retail -52% -25% 8%
Dentsply Sirona Inc. /zigman2/quotes/204544124/composite XRAY Medical Specialties -41% 9% 5%
Coty Inc. Class A /zigman2/quotes/208645074/composite COTY Household/Personal Care -39% -41% 3%
Unum Group /zigman2/quotes/208720096/composite UNM Life/Health Insurance -34% 21% 2%
Invesco Ltd. /zigman2/quotes/200294387/composite IVZ Investment Managers -32% 2% 7%
Mohawk Industries Inc. /zigman2/quotes/207248913/composite MHK Home Furnishings -31% -25% 5%
Cimarex Energy Co. /zigman2/quotes/205517948/composite XEC Oil & Gas Production -31% 45% 22%
Brighthouse Financial Inc. /zigman2/quotes/205830158/composite BHF Life/Health Insurance -29% -197% -1%
Symantec Corp. Software -29% -55% -2%
Newell Brands Inc /zigman2/quotes/209507510/composite NWL Industrial Conglomerates -29% -41% -13%
Affiliated Managers Group Inc. /zigman2/quotes/209583132/composite AMG Investment Managers -28% -3% 3%
General Electric Co. /zigman2/quotes/208495069/composite GE Industrial Conglomerates -27% -47% 3%
Incyte Corp. /zigman2/quotes/204510994/composite INCY Biotechnology -26% -500% 60%
Goodyear Tire & Rubber Co. /zigman2/quotes/210067261/composite GT Automotive Aftermarket -26% 13% 4%
Dish Network Corp. Class A /zigman2/quotes/207505872/composite DISH Cable/Satellite TV -26% 822% -5%
American Airlines Group Inc. /zigman2/quotes/209207041/composite AAL Airlines -25% -25% 4%
Nielsen Holdings PLC /zigman2/quotes/204674663/composite NLSN Advertising/Marketing Services -25% -46% 0%
Albemarle Corp. /zigman2/quotes/200578017/composite ALB Chemicals: Specialty -24% 197% 16%
Whirlpool Corp. /zigman2/quotes/200296850/composite WHR Electronics/Appliances -24% -477% -4%
Freeport-McMoRan Inc. /zigman2/quotes/200215692/composite FCX Precious Metals -23% 235% 42%
Philip Morris International Inc. /zigman2/quotes/201611010/composite PM Tobacco -23% 24% 12%
IPG Photonics Corp. /zigman2/quotes/203325788/composite IPGP Electronic Equipment/Instruments -22% 16% 12%
Kraft Heinz Co. /zigman2/quotes/203625533/composite KHC Food: Major Diversified -22% -34% 1%
Tyson Foods Inc. Class A /zigman2/quotes/201117502/composite TSN Food: Meat/Fish/Dairy -21% 21% 2%
Sealed Air Corp. /zigman2/quotes/208564360/composite SEE Containers/Packaging -20% 14% 8%
Fortune Brands Home & Security Inc. /zigman2/quotes/202019304/composite FBHS Building Products -20% 0% 5%
General Mills Inc. /zigman2/quotes/206659526/composite GIS Food: Major Diversified -20% -13% 2%
Principal Financial Group Inc. /zigman2/quotes/201030797/composite PFG Life/Health Insurance -20% 49% 1%
Source: FactSet

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

The earnings and sales numbers can’t always point to the reasons why many of these stocks have fallen so far this year. L Brands /zigman2/quotes/202062875/composite LB +2.53% the worst performer in the S&P 500 in 2018, cut its earnings guidance Aug. 23 for the second time this year.

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

There are many reasons stocks in such a diverse group of industries have declined significantly this year. Newell Brands /zigman2/quotes/209507510/composite NWL -1.57% , Dentsply Sirona /zigman2/quotes/204544124/composite XRAY +0.09% , Coty /zigman2/quotes/208645074/composite COTY -1.69% and Sealed Air /zigman2/quotes/208564360/composite SEE -0.28%  are among S&P 500 companies with high percentages of sales outside the U.S., which is an important concern during times of currency-related turmoil in international markets.

The losers loved by analysts

Starting with the above group of 28 companies, we narrowed the list to 13 with majority “buy” or equivalent ratings from sell-side analysts polled by FactSet. Here they are, sorted by how much the analysts believe the stocks might rise over the next 12 months, based on consensus price targets:

Company  Ticker Share 'buy' ratings Share neutral ratings Share 'sell' ratings Closing price - Aug. 24 Consensus target Implied upside potential
Cimarex Energy Co. /zigman2/quotes/205517948/composite XEC 61% 39% 0% $83.90 $121.78 45%
Affiliated Managers Group Inc. /zigman2/quotes/209583132/composite AMG 82% 18% 0% $147.55 $194.00 31%
IPG Photonics Corp. /zigman2/quotes/203325788/composite IPGP 78% 22% 0% $166.91 $219.25 31%
American Airlines Group Inc. /zigman2/quotes/209207041/composite AAL 72% 28% 0% $38.82 $50.88 31%
Albemarle Corp. /zigman2/quotes/200578017/composite ALB 73% 23% 4% $96.00 $124.77 30%
Invesco Ltd. /zigman2/quotes/200294387/composite IVZ 56% 44% 0% $24.14 $30.90 28%
Incyte Corp. /zigman2/quotes/204510994/composite INCY 74% 26% 0% $70.08 $85.56 22%
Fortune Brands Home & Security Inc. /zigman2/quotes/202019304/composite FBHS 60% 35% 5% $54.29 $66.00 22%
Mohawk Industries Inc. /zigman2/quotes/207248913/composite MHK 82% 18% 0% $190.41 $227.42 19%
Philip Morris International Inc. /zigman2/quotes/201611010/composite PM 59% 36% 5% $79.69 $93.27 17%
Kraft Heinz Co. /zigman2/quotes/203625533/composite KHC 61% 30% 9% $59.03 $68.85 17%
Tyson Foods Inc. Class A /zigman2/quotes/201117502/composite TSN 56% 38% 6% $63.12 $70.27 11%
Nielsen Holdings PLC /zigman2/quotes/204674663/composite NLSN 69% 31% 0% $26.47 $28.71 8%
Source: FactSet

While one can never really predict that a downtrodden stock will come right back in only a year’s time, there’s no doubt that these stocks have the backing of analysts and associated brokers at their firms. So if you are looking for a bounce-back play and are interested in any of the names on this list, do your own research to form an opinion about how well a company might perform over the next five to 10 years.

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

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/zigman2/quotes/210599714/realtime
US : S&P US
3,132.52
-3.44 -0.11%
Volume: 1.66B
Dec. 10, 2019 5:12p
loading...
/zigman2/quotes/202062875/composite
US : U.S.: NYSE
$ 17.83
+0.44 +2.53%
Volume: 10.62M
Dec. 10, 2019 6:30p
P/E Ratio
13.64
Dividend Yield
6.73%
Market Cap
$4.81 billion
Rev. per Employee
$148,898
loading...
/zigman2/quotes/204544124/composite
US : U.S.: Nasdaq
$ 57.37
+0.05 +0.09%
Volume: 896,332
Dec. 10, 2019 4:00p
P/E Ratio
79.77
Dividend Yield
0.70%
Market Cap
$12.75 billion
Rev. per Employee
$243,067
loading...
/zigman2/quotes/208645074/composite
US : U.S.: NYSE
$ 11.62
-0.20 -1.69%
Volume: 3.79M
Dec. 10, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
4.30%
Market Cap
$8.96 billion
Rev. per Employee
$453,290
loading...
/zigman2/quotes/208720096/composite
US : U.S.: NYSE
$ 29.95
+0.34 +1.15%
Volume: 3.20M
Dec. 10, 2019 6:30p
P/E Ratio
6.05
Dividend Yield
3.81%
Market Cap
$6.11 billion
Rev. per Employee
$1.21M
loading...
/zigman2/quotes/200294387/composite
US : U.S.: NYSE
$ 16.85
+0.19 +1.14%
Volume: 6.32M
Dec. 10, 2019 6:30p
P/E Ratio
14.50
Dividend Yield
7.36%
Market Cap
$7.56 billion
Rev. per Employee
$702,333
loading...
/zigman2/quotes/207248913/composite
US : U.S.: NYSE
$ 133.54
-5.34 -3.85%
Volume: 711,474
Dec. 10, 2019 6:30p
P/E Ratio
13.82
Dividend Yield
N/A
Market Cap
$9.95 billion
Rev. per Employee
$237,141
loading...
/zigman2/quotes/205517948/composite
US : U.S.: NYSE
$ 47.66
-0.01 -0.02%
Volume: 972,814
Dec. 10, 2019 6:30p
P/E Ratio
9.47
Dividend Yield
1.68%
Market Cap
$4.85 billion
Rev. per Employee
$2.45M
loading...
/zigman2/quotes/205830158/composite
US : U.S.: Nasdaq
$ 39.41
+0.04 +0.10%
Volume: 614,276
Dec. 10, 2019 4:00p
P/E Ratio
2.60
Dividend Yield
N/A
Market Cap
$4.30 billion
Rev. per Employee
$6.35M
loading...
/zigman2/quotes/209507510/composite
US : U.S.: Nasdaq
$ 18.83
-0.30 -1.57%
Volume: 2.85M
Dec. 10, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
4.89%
Market Cap
$8.10 billion
Rev. per Employee
$233,268
loading...
/zigman2/quotes/209583132/composite
US : U.S.: NYSE
$ 82.84
-1.42 -1.69%
Volume: 559,998
Dec. 10, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
1.55%
Market Cap
$4.15 billion
Rev. per Employee
$540,629
loading...
/zigman2/quotes/208495069/composite
US : U.S.: NYSE
$ 11.01
+0.02 +0.18%
Volume: 24.78M
Dec. 10, 2019 6:30p
P/E Ratio
380.97
Dividend Yield
0.36%
Market Cap
$95.98 billion
Rev. per Employee
$429,735
loading...
/zigman2/quotes/204510994/composite
US : U.S.: Nasdaq
$ 95.72
+0.93 +0.98%
Volume: 1.19M
Dec. 10, 2019 4:00p
P/E Ratio
51.37
Dividend Yield
N/A
Market Cap
$20.42 billion
Rev. per Employee
$1.38M
loading...
/zigman2/quotes/210067261/composite
US : U.S.: Nasdaq
$ 16.13
+0.05 +0.28%
Volume: 1.89M
Dec. 10, 2019 4:00p
P/E Ratio
19.86
Dividend Yield
3.97%
Market Cap
$3.74 billion
Rev. per Employee
$241,797
loading...
/zigman2/quotes/207505872/composite
US : U.S.: Nasdaq
$ 33.53
+0.02 +0.06%
Volume: 1.64M
Dec. 10, 2019 4:00p
P/E Ratio
13.15
Dividend Yield
N/A
Market Cap
$16.98 billion
Rev. per Employee
$851,331
loading...
/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 27.00
-0.49 -1.78%
Volume: 7.54M
Dec. 10, 2019 4:00p
P/E Ratio
7.60
Dividend Yield
1.48%
Market Cap
$12.04 billion
Rev. per Employee
$345,547
loading...
/zigman2/quotes/204674663/composite
US : U.S.: NYSE
$ 19.74
-0.25 -1.25%
Volume: 3.59M
Dec. 10, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
1.22%
Market Cap
$7.11 billion
Rev. per Employee
$141,630
loading...
/zigman2/quotes/200578017/composite
US : U.S.: NYSE
$ 65.30
+0.58 +0.90%
Volume: 1.02M
Dec. 10, 2019 6:30p
P/E Ratio
12.15
Dividend Yield
2.25%
Market Cap
$6.86 billion
Rev. per Employee
$572,025
loading...
/zigman2/quotes/200296850/composite
US : U.S.: NYSE
$ 144.47
-1.75 -1.20%
Volume: 724,690
Dec. 10, 2019 6:30p
P/E Ratio
8.73
Dividend Yield
3.32%
Market Cap
$9.24 billion
Rev. per Employee
$228,663
loading...
/zigman2/quotes/200215692/composite
US : U.S.: NYSE
$ 12.28
+0.18 +1.49%
Volume: 17.33M
Dec. 10, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
1.63%
Market Cap
$17.56 billion
Rev. per Employee
$707,724
loading...
/zigman2/quotes/201611010/composite
US : U.S.: NYSE
$ 83.90
+0.31 +0.37%
Volume: 3.50M
Dec. 10, 2019 6:30p
P/E Ratio
17.47
Dividend Yield
5.58%
Market Cap
$130.06 billion
Rev. per Employee
$382,519
loading...
/zigman2/quotes/203325788/composite
US : U.S.: Nasdaq
$ 136.81
-0.57 -0.41%
Volume: 391,700
Dec. 10, 2019 4:00p
P/E Ratio
28.34
Dividend Yield
N/A
Market Cap
$7.29 billion
Rev. per Employee
$234,706
loading...
/zigman2/quotes/203625533/composite
US : U.S.: Nasdaq
$ 31.88
-0.05 -0.16%
Volume: 5.54M
Dec. 10, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
5.02%
Market Cap
$38.99 billion
Rev. per Employee
$673,308
loading...
/zigman2/quotes/201117502/composite
US : U.S.: NYSE
$ 88.61
-1.06 -1.18%
Volume: 2.10M
Dec. 10, 2019 6:30p
P/E Ratio
16.24
Dividend Yield
1.90%
Market Cap
$32.12 billion
Rev. per Employee
$330,628
loading...
/zigman2/quotes/208564360/composite
US : U.S.: NYSE
$ 38.82
-0.11 -0.28%
Volume: 1.03M
Dec. 10, 2019 6:30p
P/E Ratio
16.42
Dividend Yield
1.65%
Market Cap
$6.02 billion
Rev. per Employee
$305,335
loading...
/zigman2/quotes/202019304/composite
US : U.S.: NYSE
$ 64.00
-0.10 -0.16%
Volume: 720,039
Dec. 10, 2019 6:30p
P/E Ratio
21.94
Dividend Yield
1.38%
Market Cap
$8.92 billion
Rev. per Employee
$216,802
loading...
/zigman2/quotes/206659526/composite
US : U.S.: NYSE
$ 53.24
+0.08 +0.15%
Volume: 3.57M
Dec. 10, 2019 6:30p
P/E Ratio
17.19
Dividend Yield
3.68%
Market Cap
$32.13 billion
Rev. per Employee
$414,842
loading...
/zigman2/quotes/201030797/composite
US : U.S.: Nasdaq
$ 53.24
-0.01 -0.02%
Volume: 933,137
Dec. 10, 2019 4:00p
P/E Ratio
11.29
Dividend Yield
4.13%
Market Cap
$14.79 billion
Rev. per Employee
$865,214
loading...
/zigman2/quotes/202062875/composite
US : U.S.: NYSE
$ 17.83
+0.44 +2.53%
Volume: 10.62M
Dec. 10, 2019 6:30p
P/E Ratio
13.64
Dividend Yield
6.73%
Market Cap
$4.81 billion
Rev. per Employee
$148,898
loading...
/zigman2/quotes/209507510/composite
US : U.S.: Nasdaq
$ 18.83
-0.30 -1.57%
Volume: 2.85M
Dec. 10, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
4.89%
Market Cap
$8.10 billion
Rev. per Employee
$233,268
loading...
/zigman2/quotes/204544124/composite
US : U.S.: Nasdaq
$ 57.37
+0.05 +0.09%
Volume: 896,332
Dec. 10, 2019 4:00p
P/E Ratio
79.77
Dividend Yield
0.70%
Market Cap
$12.75 billion
Rev. per Employee
$243,067
loading...
/zigman2/quotes/208645074/composite
US : U.S.: NYSE
$ 11.62
-0.20 -1.69%
Volume: 3.79M
Dec. 10, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
4.30%
Market Cap
$8.96 billion
Rev. per Employee
$453,290
loading...
/zigman2/quotes/208564360/composite
US : U.S.: NYSE
$ 38.82
-0.11 -0.28%
Volume: 1.03M
Dec. 10, 2019 6:30p
P/E Ratio
16.42
Dividend Yield
1.65%
Market Cap
$6.02 billion
Rev. per Employee
$305,335
loading...
/zigman2/quotes/205517948/composite
US : U.S.: NYSE
$ 47.66
-0.01 -0.02%
Volume: 972,814
Dec. 10, 2019 6:30p
P/E Ratio
9.47
Dividend Yield
1.68%
Market Cap
$4.85 billion
Rev. per Employee
$2.45M
loading...
/zigman2/quotes/209583132/composite
US : U.S.: NYSE
$ 82.84
-1.42 -1.69%
Volume: 559,998
Dec. 10, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
1.55%
Market Cap
$4.15 billion
Rev. per Employee
$540,629
loading...
/zigman2/quotes/203325788/composite
US : U.S.: Nasdaq
$ 136.81
-0.57 -0.41%
Volume: 391,700
Dec. 10, 2019 4:00p
P/E Ratio
28.34
Dividend Yield
N/A
Market Cap
$7.29 billion
Rev. per Employee
$234,706
loading...
/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 27.00
-0.49 -1.78%
Volume: 7.54M
Dec. 10, 2019 4:00p
P/E Ratio
7.60
Dividend Yield
1.48%
Market Cap
$12.04 billion
Rev. per Employee
$345,547
loading...
/zigman2/quotes/200578017/composite
US : U.S.: NYSE
$ 65.30
+0.58 +0.90%
Volume: 1.02M
Dec. 10, 2019 6:30p
P/E Ratio
12.15
Dividend Yield
2.25%
Market Cap
$6.86 billion
Rev. per Employee
$572,025
loading...
/zigman2/quotes/200294387/composite
US : U.S.: NYSE
$ 16.85
+0.19 +1.14%
Volume: 6.32M
Dec. 10, 2019 6:30p
P/E Ratio
14.50
Dividend Yield
7.36%
Market Cap
$7.56 billion
Rev. per Employee
$702,333
loading...
/zigman2/quotes/204510994/composite
US : U.S.: Nasdaq
$ 95.72
+0.93 +0.98%
Volume: 1.19M
Dec. 10, 2019 4:00p
P/E Ratio
51.37
Dividend Yield
N/A
Market Cap
$20.42 billion
Rev. per Employee
$1.38M
loading...
/zigman2/quotes/202019304/composite
US : U.S.: NYSE
$ 64.00
-0.10 -0.16%
Volume: 720,039
Dec. 10, 2019 6:30p
P/E Ratio
21.94
Dividend Yield
1.38%
Market Cap
$8.92 billion
Rev. per Employee
$216,802
loading...
/zigman2/quotes/207248913/composite
US : U.S.: NYSE
$ 133.54
-5.34 -3.85%
Volume: 711,474
Dec. 10, 2019 6:30p
P/E Ratio
13.82
Dividend Yield
N/A
Market Cap
$9.95 billion
Rev. per Employee
$237,141
loading...
/zigman2/quotes/201611010/composite
US : U.S.: NYSE
$ 83.90
+0.31 +0.37%
Volume: 3.50M
Dec. 10, 2019 6:30p
P/E Ratio
17.47
Dividend Yield
5.58%
Market Cap
$130.06 billion
Rev. per Employee
$382,519
loading...
/zigman2/quotes/203625533/composite
US : U.S.: Nasdaq
$ 31.88
-0.05 -0.16%
Volume: 5.54M
Dec. 10, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
5.02%
Market Cap
$38.99 billion
Rev. per Employee
$673,308
loading...
/zigman2/quotes/201117502/composite
US : U.S.: NYSE
$ 88.61
-1.06 -1.18%
Volume: 2.10M
Dec. 10, 2019 6:30p
P/E Ratio
16.24
Dividend Yield
1.90%
Market Cap
$32.12 billion
Rev. per Employee
$330,628
loading...
/zigman2/quotes/204674663/composite
US : U.S.: NYSE
$ 19.74
-0.25 -1.25%
Volume: 3.59M
Dec. 10, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
1.22%
Market Cap
$7.11 billion
Rev. per Employee
$141,630
loading...

Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.

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