8 Crashing Stocks You May Own Are Already In Serious Trouble

2 years ago 489

The aboveground of the S&P 500 makes markets look calm. But look down conscionable 1 layer, and you'll spot immoderate superior pain. Is much symptom to come?


Eight stocks trading connected the S&P 1500 scale — including concern play Proto Labs (PRLB) and user discretionary stocks Bed Bath & Beyond (BBBY) and GameStop (GME) — person crashed much than 70% from their 52-week highs, says an Investor's Business Daily investigation of information from S&P Global Market Intelligence and MarketSmith.

This means these stocks — which inhabit the popular S&P 500, S&P SmallCap 600 oregon S&P Midcap 400 indexes — are erasing monolithic amounts of wealth.

And these stocks successful large occupation item the monolithic gulf betwixt the market's winners and losers.

Small-cap maturation stocks, which were liable for large gains past year, are present down much than 6% from their highs, arsenic measured by the SPDR S&P 600 Small Cap Growth ETF (SLYG). The big-cap-dominated SPDR S&P 500 ETF Trust (SPY), connected the different hand, is disconnected conscionable a fraction of that: 2.4%.

"Equity markets person soared higher successful 2021, based connected an exceptionally beardown economical rebound; however, according to a composite of our equity valuations, we deliberation the marketplace is 5% overvalued," said Morningstar's main U.S. strategist, Dave Sekera.

Losers Are Sticking Out In The S&P 500

If you're sitting connected stocks that are down 70% oregon much from their highs, you're decidedly an outlier, successful a atrocious way. More than a 4th of the stocks successful the S&P 1500 are successful an other presumption — astatine oregon wrong 5% of a high.

In fact, implicit the past 2 weeks the fig of S&P 500 stocks gaining outnumbered the fig falling by the strongest magnitude since Oct. 8, 2020, says Bespoke Investment Group. "Most sectors' existent readings are done the extortion and higher than astir oregon immoderate play observed successful the past year," Bespoke said.

So if you're down this much, you're feeling the different extremity of the market's trend. Now astir a 3rd of S&P 1500 stocks are down 20% oregon much from their highs.

The Hardest-Hit Stocks

Scanning the hardest-hit stocks shows Proto Labs, a shaper of concern laser equipment, arsenic the biggest loser. It's down a bruising 82% from its 52-week precocious notched connected Jan. 27 of past year. In conscionable a year's time, the banal is down astir 67%. During that time, the S&P 500 is up much than 26%.

The company's fundamentals are an anchor. Profit successful 2021 is seen dropping much than 40%. And adjacent this year, nett is expected to beryllium much than 30% little than it was successful 2020.

Meme Stocks Are Hurting In A Bad Way

The alleged "meme stocks," are suffering too. Former highflier GameStop has seen shares plunge much than 70% from their precocious connected Jan. 28, 2021. Amazingly, though, the banal is inactive up much than 600% successful the past 12 months. That gain, though, is vanishing fast.

Bed Bath & Beyond, different meme play, is present down by much than 75% from its 52-week precocious connected Jan. 27. That chopped successful the company's marketplace value, though, is starting to deed bone. The banal is down astir a 3rd successful 12 months.

The meme implosion has adjacent touched the S&P 500. While not a azygous S&P 500 banal is down 70% from its high, ViacomCBS (VIAC) is close. It's down astir 68% from its meme-induced precocious acceptable connected March 15, 2021.

It's unclear if these large losers portend much occupation for the S&P 500. But it's wide present that the marketplace has plentifulness of symptom nether the surface.

Hardest-Hit Stocks

S&P 1500 stocks down 70% oregon much from their 52-week highs

Company Ticker Index Date of 52-week high % alteration from 52-week high Sector
Proto Labs (PRLB) S&P 600 1/27/2021 -82.2% Industrials
Tabula Rasa HealthCare (TRHC) S&P 600 1/27/2021 -78.4 Health Care
Bed Bath & Beyond (BBBY) S&P 600 1/27/2021 -75.2 Consumer Discretionary
SelectQuote (SLQT) S&P 600 4/13/2021 -74.3 Financials
GameStop (GME) S&P 400 1/28/2021 -73.2 Consumer Discretionary
eHealth (EHTH) S&P 600 1/27/2021 -72.6 Financials
Spectrum Pharmaceuticals (SPPI) S&P 600 6/14/2021 -72.0 Health Care
Tactile Systems Technology (TCMD) S&P 600 2/10/2021 -70.9 Health Care
Source: IBD, S&P Global Market Intelligence

Follow Matt Krantz connected Twitter @mattkrantz


Bank Of America Names Top 11 Stock Picks For 2022

MarketSmith: Research, Charts, Data And Coaching All In One Place

12 Stocks Turned $10,000 Into $413,597 In 12 Months

Check Out IBD's New IBD Live Panel Discussion

Extended Rally, Tesla Climax Run Are Volatile Mix; Nio Unveils Luxury EV

Read Entire Article