S&P 500 All-Time Highs but 40 Value Stocks Still Down Over 30% YTD

It seems amazing that the S&P 500 went from a continued raging bull market at the start of 2020, into the fastest recession of our lives, and then all the way back up to positive in record time. It’s almost as if the bear market never existed. Not so fast. While the S&P 500 managed to recapture all-time highs in August, many of its stocks and sectors are not participating in the economic recovery and bull market at all.

24/7 Wall St. has been screening the universe of actively traded stocks looking for those companies that have seen negative performance or that have lagged behind others during the stock market recovery since the V-bottom in March and since April. The verdict is simple: the breadth of the stock market recovery remains rather weak.

Many sectors of the economy remain under partial closure and many are effectively unable to operate at profitability and may not for the foreseeable future. Of the S&P 500 screen, we selected 40 of the top losing S&P 500 stocks that are down for the year, with losses ranging from over 30% to over 55%. In most cases, these were historically solid companies before the recession that are likely to survive afterward.

Note that investors need to be aware of a so-called value trap. Some stocks may look like screaming buys because their share prices have come down so much, but lower share prices and weaker fundamentals may not be “cheap” at all. Companies that have ended up in an industry facing secular changes or in which their own underlying fundamentals are weak will not feel like “value” over time.

To keep the value screen fair and reasonable for value investors, some sectors were eliminated due to permanent damage. Companies largely were excluded if their primary operations were tied to oil and gas, if they were the troubled major retailers and if they were major real estate owners (e.g., REITs). Companies reliant on travel and tourism (airlines, cruise lines, hotels) also were screened out due to the sector’s forced financial losses.

According to a screen from Finviz, 292 members of the S&P 500 still are down year to date (YTD). Of those that are negative YTD, 154 of them are down 20% or more, and 55 of those stocks are down by 40% or more, with 24 of them down 50% or more. There are also now 25 members of the S&P 500 Index with a market cap of less than $5 billion, which means they could be moved down to the S&P Mid-Cap 400 Index and replaced by “more modern and preferable” stocks if their shares do not recover.

Of the S&P 500’s top gainers, two stocks have gained over 100% YTD and 19 stocks with gains of between 50% and 100%. After those, there are another 30 with gains of 30% to 49% and another 31 stocks with gains between 20% and 30%.

While we are not using the Dow Jones industrials for screening purposes, 20 of the 30 Dow stocks have losses ranging from under 1% to 48.5%. That leaves just 10 of the 30 up YTD, and only five are up 10% or more (with Apple up a whopping 69%).

The long and short of the matter is that this new bull market is really a market of stocks rather than a stock market. The leadership companies have provided all the great gains, and companies in the old economy that do not have a great business model or that are deemed nonessential are feeling the sting. We have added some color on each company, included some trading history and included some Refinitiv consensus data.

Investors need to understand that the market losers often tend to stay losers for some time. These may take quite some time to recover, and history has proven that shopping for value in the reject bin will generate some companies that do not have any great place in the future. Here are 40 stocks from the S&P 500 that are down 30% or more so far in 2020.

1. Wells Fargo & Co. (NYSE: WFC) is the biggest loser among the S&P 500 banks, and its problems of a dividend cut and a Warren Buffet exodus are only part of the issue here. Wells Fargo has even joined the banks trading at a deep discount to book value because investors believe that its underlying book value will be far lower in the future. Wells Fargo stock is down 56% YTD, despite being down just 2.2% in the trailing 90 days. It recently closed at $23.64 a share, in a 52-week range of $22.00 to $54.75. It has a market cap of $97 billion, and its dividend yield is 1.7%. Analysts have a consensus price target of $29.72.

2. Under Armour Inc. (NYSE: UAA) was last seen down 55% YTD, and it is actually still up 18% over the past quarter despite its recent sell-off. Under Armour faced issues even before the pandemic, and Nike has managed to keep winning with its market dominance. Under Armour’s future turnaround looks less certain, based on a trading range of $9.50 to about $11.75 all summer. The consensus price target is $10.39. Under Armour stock last closed at $9.73, in a 52-week range of $7.15 to $21.96. It has a market cap of just over $4 billion.

3. PVH Corp. (NYSE: PVH) is a top apparel company, but the stay-at-home and athleisure trends have not worked so far for the company. Some of its brands include Tommy Hilfiger, Calvin Klein, Van Heusen, Izod and Geoffrey Beene, and it has licenses for brands including Speedo, Kenneth Cole, Michael Kors, DKNY and Chaps. PVH shares are still down 52% YTD, despite its stock being up 13% in the past 90 days. It recently closed at $50.13 a share, in a 52-week range of $28.40 to $108.06. It has a market cap of $3.6 billion. The consensus price target is $58.75.

4. DXC Technology Co. (NYSE: DXC), sometimes thought of as “the other IBM,” is down 50% YTD, even though it is up 20% in the past 90 days. This one is less known by the public as it was created by the merger of CSC and the enterprise services business of Hewlett Packard Enterprise. DXC Technology stock last closed at $18.68, in a 52-week range of $7.90 to $38.37. The company has a market cap of $4.7 billion and a consensus price target of $22.93.

5. Xerox Corp. (NYSE: XRX) seems pretty obvious, in that fewer offices means fewer copying and in-office needs. Xerox is down 49% YTD, even though it is up 10% over the past 90 days. With no HP merger and with limited prospects on its own, Xerox is finding itself as the tech leader that no one even remembers still exists. Xerox recently closed at $18.76, in a 52-week range of $14.22 to $39.47. Analysts have a consensus price target of $17.20. The market cap is $4 billion, and the dividend yield is 5.3%.

6. Western Digital Corp. (NASDAQ: WDC) has been a big disappointment as the rest of tech has held strong. Its shares were down more than 46% YTD and were down just over 20% in the past 90 days, after a poor earnings and guidance report. This has been far more disappointing than the 24.6% drop YTD for rival Seagate. Western Digital last closed at $33.71 a share, in a 52-week range of $27.40 to $72.00. It has a market cap of $10 billion and a consensus price target of $51.49.

7. Comerica Inc. (NYSE: CMA) is down about 46% YTD, and that is after its shares are still up 17% in the past 90 days. With its headquarters in Texas and with a wide exposure to corporate loans, Comerica continually comes up in screens about banks with high direct and indirect exposure to the energy sector. Comerica recently closed at $38.37, with a 52-week range of $24.28 to $73.43. It has a market cap of $5.3 billion and a dividend yield of 7.1%. Analysts have a consensus price target of $40.40.

8. Tapestry Inc. (NYSE: TPR) is down 46% YTD and up only 4% in the past 90 days. This may be a great company, but it is a hard sell to consider that the products under its Coach, Kate Spade and Stuart Weitzman labels will sell like hot-cakes if all the buyers are unable to go to work, have luxury travel and have limited options for “going out on the town.” Tapestry last closed at $14.54, in a 52-week range of $10.18 to $30.40 and with a consensus price target of $19.78. The market cap is $4 billion.

9. American International Group Inc. (NYSE: AIG) was last seen down 45% YTD, and it is down 2% in the past 90 days. The insurance giant has seen weakness in life/health-related insurance with higher leverage and lower interest rate coverage. AIG was severely punished during the February through March panic selling, as it lost more than two-thirds of its value in less than six weeks. AIG recently closed at $28.27, in a 52-week range of $16.07 to $58.66. It has a market cap of $24 billion and dividend yield of 4.4%.

10. Invesco Ltd. (NYSE: IVZ) was brutally punished in the March panic selling, but unlike many others, this asset manager’s stock price ended up even lower than the March lows in mid-May. Invesco shares are down over 43% YTD, even after a 39% gain in the past 90 days. Invesco last closed at $10.14, in a 52-week range of $6.38 to $19.01. It has a market cap of $4.7 billion and a dividend yield of 6.1%. Analysts have a consensus price target of $10.07.

11. General Electric Co. (NYSE: GE) has problems that are widely known, and it was only included on this list for the “deep value” buyers who think share prices rather than multiples against forward earnings, free cash flow and EBITDA are good criteria of “value.” GE is down 43% YTD and down about 1.5% in the past 90 days. Shares recently closed at $6.31, in a 52-week range of $5.48 to $13.26 and with a consensus price target of $7.75. The market cap is $55 billion, and the dividend yield is 0.6%.

12. Ralph Lauren Corp. (NYSE: RL) seems obvious in the higher end apparel category. Fewer places to go for entertainment and fewer office trips means less need for higher fashion. The Polo brand owner is down over 42% YTD and down roughly 8% in the past 90 days. Ralph Lauren last closed at $67.05, in a 52-week range of $59.82 to $128.29. It has a market cap of $4.9 billion. The consensus price target is $85.08.

13. FirstEnergy Corp. (NYSE: FE) has been the worst-performing of the more diversified utilities companies due to a recent tie to an Ohio racketeering scandal casting a wide cloud over its future. Still, the outcome here is far from known, and the company’s other assets are believed to hold great value. We have even wondered if Buffett would dare come in as a white knight to clean up the company (and make a pretty penny on the cheap). FirstEnergy shares were last seen down 42% YTD. FirstEnergy recently closed at $28.11, in a 52-week range of $22.85 to $52.52 and with a consensus analyst target of $39.18. It has a market cap of $15 billion and a dividend yield of 5.6%.

14. Discover Financial Services (NYSE: DFS) is effectively a pure-play on credit cards, and its audience historically has not been at the highest end of the credit score and income curve. With rising delinquencies and charge-offs widely reported by credit card companies and banks, the stock is down about 41.5% YTD, even after its shares rose 22.5% over the past 90 days. Discover Financial Services stock last closed at $49.57, in a 52-week range of $23.25 to $87.43. It has a market cap of $15 billion and a dividend yield of 3.6%. Analysts have a consensus price target of $61.25.

15. Hewlett Packard Enterprise Co. (NYSE: HPE) is down 41% YTD, and its shares are up 1.7% in the past 90 days. It is due to report earnings in the last week of August, and its earnings reports have faced trouble under the COVID-19 impact on overall business conditions. Shares recently closed at $9.33, in a 52-week range of $7.43 to $17.59. The market cap is $12 billion, and the dividend yield is 5.2%. The consensus price target is $10.97.

16. KeyCorp (NYSE: KEY) is down 41% YTD, even though its shares up over 11% in the past 90 days. KeyCorp still screens with a dividend yield above 6%, due to a sharp sell-off earlier this year rather than to great general industry earnings during this recession. KeyCorp last closed at $11.95 a share, in a 52-week range of $7.45 to $20.53 and with a consensus price target of $13.91. It has a market cap of $11.7 billion and a dividend yield of 6.2%.

17. Lincoln National Corp. (NYSE: LNC) is among other insurers with serious negative performance. The stock is down almost 41% YTD and down less than 1% in the past 90 days. It lost nearly 70% of its value during the February and March panic selling. Its dividend yield of almost 4.5% was confirmed with no dividend-cut announced, and its dividend coverage looks more than ample (and then some). Lincoln National stock recently closed at $34.92, in a 52-week range of $16.11 to $62.95. It has a market cap of $6.7 billion and a dividend yield of 4.6%. Analysts have a consensus price target of $44.64.

18. U.S. Bancorp (NYSE: USB) is still down about 40.5% YTDm despite being up about 7% in the past 90 days, even after a sell-off since the first week of August. U.S. Bancorp still has a market cap above $50 billion, and its premium to book value has remained much closer to 1.0 (at 1.16 on last look) with better than a 4.7% dividend yield. U.S. Bancorp last closed at $35.21, in a 52-week range of $28.36 to $61.11. It has a market cap of $53 billion and a consensus price target of $42.66.
19. Citizens Financial Group Inc. (NYSE: CFG) was last seen down about 40.5% YTD, despite being up over 13.5% in the past 90 days. This is the fifth worst performing YTD bank stock covered so far out of those in the S&P 500, with a $10 billion market cap and shares still at a very hefty discount of 0.50 times book value. Citizens Financial recently closed at $24.19, in a 52-week range of $14.12 to $41.29. It has a market cap of $10 billion and a 6.5% dividend yield. The consensus price target is $29.58.

20. M&T Bank Corp. (NYSE: MTB) is still down about 39.5% YTD, despite being up 4.5% in the past 90 days. The stock has been range-bound for about 60 days, and its valuation of almost 0.9 times book value remains much lower than pre-recession metrics. M&T Bank last closed at $102.46 a share, in a 52-week range of $85.09 to $174.00 and with a consensus price target of $122.85. It has a market cap of $13 billion and a dividend yield of 4.3%.

21. Huntington Bancshares Inc. (NASDAQ: HBAN) is down 39.5% YTD, despite a gain of almost 20% over the past 90 days. This stock never did recover to its pre-Great Recession peak from 2006, and it is now at a discount to book value (0.78 times), and its dividend yield above 6% should highlight some concerns that it may not be sustainable without an industry recovery. Huntington Bancshares closed at $9.11, in a 52-week range of $6.82 to $15.63. It has a market cap of $9.3 billion and a dividend yield of 6.6%. Analysts have a consensus price target of $10.59.

22. Unum Group (NYSE: UNM) is a life insurance provider with a relatively small $3.56 billion market capitalization, one of the smallest S&P 500 stocks. Unum’s stock is still down 39.5% YTD, despite a gain of 19.9% over the past 90 days. Its dividend yield of over 6% may seem suspect, due solely to its stock performance more than incredibly strong earnings. Shares last closed at $17.64, in a 52-week range of $9.58 to $31.32. The consensus analyst target is $21.00. Unum has a market cap of $3.6 billion and a dividend yield of 6.5%.

23. Zions Bancorp. (NASDAQ: ZION) is down just over 39% YTD, despite being up by 4.6% from 90 days ago. The stock is still up handily from its panic-selling lows in March, but its valuation of 0.75 times book value is against a 4.1% dividend yield. It recently closed at $31.59, in a 52-week range of $23.58 to $52.48. It has a market cap of $5.2 billion and a consensus price target of $36.48.

24. V.F. Corp. (NYSE: VFC) is still down over 38% YTD, despite being 10.8% higher than 90 days ago. Being in the apparel and accessories products can be tricky when so many retailers are in trouble, stores are still closed and the products not being in high demand due to stay-at-home and few “out on the town” options. Still, some of its brands should win from the new travel trends. Those brands include North Face, Timberland, Vans, Eastpak, JanSport, Eagle Creek and Dickies. Shares last closed at $61.66, in a 52-week range of $45.07 to $100.25. It has a market cap of $24 billion and a dividend yield of 3.1%. Analysts have a consensus price target of $65.91.

25. H&R Block Inc. (NYSE: HRB) was last seen down 37.7% YTD and down 13.7% over the past 90 days. There are perhaps far more people who cannot afford tax preparation and may migrate to free or low-cost software services to file taxes. The shift of the tax filing dates also shifted a large portion of its business out into forward months. H&R Block last closed at $14.62, in a 52-week range of $11.29 to $27.35 and with a consensus price target of $18.17. It has a market cap of $2.8 billion and a dividend yield of 7.1%.

26. ViacomCBS Inc. (NASDAQ: VIAC) may have picked an unlucky time to merge two media giants back together. Its shares are down 36.8% YTD, despite seeing a sharp 35% gain in the past 90 days. ViacomCBS recently closed at $26.51, in a 52-week range of $10.10 to $43.04 and with a consensus price target of $26.00. It has a market cap of $16.5 billion and a dividend yield of 3.6%.

27. Huntington Ingalls Industries Inc. (NYSE: HII) is involved in making military ships for the United States and ally nations, and it has fallen since a disappointing earnings report in early August. With a market cap of only $6.3 billion, Huntington Ingalls is down 36.7% YTD and down 13.2% in the past 90 days. This makes it the worst-performing stock of the major defense contractors. Huntington Ingalls last closed at $158.63, in a 52-week range of $147.14 to $279.71. It has a market cap of $6.4 billion and a dividend yield of 2.6%. Analysts have a consensus price target of $186.15.

28. Omnicom Group Inc. (NYSE: OMC) is in a leadership position in advertising agencies. That is a great spot to be in during economic booms, but companies largely have been trimming their advertising efforts to save cash and possibly in place of firing workers. Omnicom shares are down 32% YTD but are up 1.5% in the past 90 days. Despite being higher from the March and May lows, its stock has been range-bound for most of the past three months. Omnicom recently closed at $52.55, in a 52-week range of $46.37 to $82.73. It has a market cap of $11.3 billion and a dividend yield of 5.0%. The consensus price target is $57.82.

29. Hartford Financial Services Group Inc. (NYSE: HIG) has suffered from low rates and a challenging climate to generate new business, along with other insurers in 2020. Hartford Financial stock is still down 34.4% YTD, despite being up 7.7% in the past 90 days. Shares last closed at $39.85, with a 52-week range of $19.04 to $62.75 and a consensus price target of $52.33. It has a market cap of $14 billion and a dividend yield of 3.3%.
30. Discovery Inc. (NASDAQ: DISCK) has performed worse than its more actively traded A shares in 2020, despite a slightly better gain over the past 90 days. The media company owns and operates its own networks and video content that spans all ages and genres, which means it is reliant on cable charges and advertising. The K shares are down about 34.3% YTD, despite being up 9.1% over the past 90 days. Discovery recently closed at $20.04, in a 52-week range of $15.43 to $31.20. It has a market cap of $10.6 billion and a consensus price target of $24.33.

31. Mohawk Industries Inc. (NYSE: MHK) is a leader in anything related to flooring, and while residential sales are strong, the commercial market is on pause. Mohawk shares are down 33.7% YTD, despite being up 8.4% in the past 90 days. It lost more than half of its value in the February to March panic selling and has since recovered yet again, after a very strong selling bought in early July after allegations that the company has been using fictitious sales data. Mohawk Industries stock last closed at $90.32, in a 52-week range of $56.62 to $153.05. It has a market cap of $6.4 billion and a consensus price target of $93.46.

32. NetApp Inc. (NASDAQ: NTAP) is down 33.7% YTD and is down 7.7% over the past 90 days. NetApp was punished along with other hardware providers during the sell-off from February through March, but its recovery has been muted. Even valued at 10 times expected earnings and with a 4.6% dividend yield, it has not overcome negative revenue trends expected in 2020 and slow growth thereafter. Its earnings report is scheduled for August 26. NetApp recently closed at $41.25, in a 52-week range of $34.66 to $65.38. It has a market cap of $9.2 billion and a dividend yield of 4.7%. Analysts have a consensus price target of $47.33.

33. WestRock Co. (NYSE: WRK) is down 33.7% YTD despite its shares being up 12.3%% over the past 90 days. The paper and packaging solutions for consumer and corrugated markets has been challenged during 2020, and analysts are still expecting slight revenue and earnings per share contractions to last in the rest of 2020 and into 2021. WestRock last closed at $28.46, with a 52-week range of $21.50 to $44.39. It has a market cap of $7.4 billion and a dividend yield of 2.8%. The consensus price target is $38.00.

34. Synchrony Financial (NYSE: SYF) is down 33.6% YTD, despite seeing its shares up a sharp 34% over the past 90 day period. Synchrony is deep into private label credit cards, effectively being a huge credit card issuer under other business and entity’s names. It also offers loans for consumers through other avenues and other businesses. The obvious issue here is rising credit delinquencies and charge-offs due to widespread risks of nonpayment. Synchrony Financial recently closed at $23.91, in a 52-week range of $12.15 to $38.18. It has a market cap of roughly $14 billion and a dividend yield of 3.7%. Analysts have a consensus price target of $28.47.

35. Walgreens Boots Alliance Inc. (NASDAQ: WBA) has not been able to recover from its pre-coronavirus woes and the slower foot traffic to pharmacies and retail has weighed. Walgreens shares are down 33% YTD despite being down only 0.3% over the past 90 days. The stock last closed at $39.46, with a 52-week range of $36.65 to $64.50. It has a market cap of $34 billion and a dividend yield of 4.7%. Walgreens has a consensus target price of $43.00.

36. Sysco Corp. (NYSE: SYY) should have been a defensive stock considering it is the top food distributor, but with the restaurant industry gutted and forced into mass shutdowns, the panic selling in March was far worse than the pre-recession highs of 2008 to the panic selling lows of 2009 on a percentage basis. Sysco has recovered handily from its lows as a “reopening trade,” but the stock is still down 32.8% YTD, despite being up 11% over the past 90 days. Sysco recently closed at $57.46, in a 52-week range of $26.00 to $85.98. It has a market cap of $29 billion and a dividend yield of 3.1%, and it has a consensus target price is $63.50.

37. Loews Corp. (NYSE: L) is classified as property and casualty insurer, but it’s actually a jumbled conglomerate with energy exposure, the Loews hotel chain and injection molded plastic containers for multiple industries. Loews CEO Jim Tisch has even gone as far as to rail against the absurd valuation and call the stock egregiously undervalued in an early-August earnings conference call. Loews stock is down 32.7% YTD, though it is still up 10.7% over the past 90 days despite a recent 10% sell-off. Loews last closed at $35.32, in a 52-week range of $27.33 to $56.88. It has a market cap of nearly $10 billion and a dividend yield of 0.7%, although Loews is thinly followed by analysts.

38. CF Industries Holdings Inc. (NYSE: CF) is a leader in making nitrogen fertilizers and other nitrogen products. While this should be defensive, global economic weakness translates to less food consumption from some of the nations that were on their way to achieving three meals per day. CF Industries stock is down 32.2% YTD, despite being up over 17.3% over the past 90 days. Shares recently closed at $32.37, in a 52-week range of $19.73 to $52.30. It has a market cap of $6.9 billion and a dividend yield of 3.7%. It also has a consensus target price of $38.00.

39. FLIR Systems Inc. (NASDAQ: FLIR) has been weak in August after an earnings disappointment, despite being a potential COVID-19 winner with its temperature-reading devices. The stock is down 32.1% YTD and down 21.5% over the past 90 days. It last closed at $35.35, in a 52-week range of $23.85 to $59.44. It has a market cap of $4.6 billion and a dividend yield of 1.9%. The consensus target price is $46.89.

40. Edison International (NYSE: EIX) may not be in the same boat as PG&E was, but its electricity distribution systems and corporate base are in California. Edison International operates as Southern California Edison and Edison Energy. Its stock is down 32% YTD and down about 9.2% over the past 90 days. Shares recently closed at $51.26, with a 52-week range of $43.63 to $78.93. The market cap is $19.4 billion, and the dividend yield is 5.0%. It has a consensus target price of $69.29.

The SPDR S&P 500 ETF Trust (NYSEARCA: SPY) is one of the most liquid exchange-traded funds of them all, with nearly 80 million shares trading on an average day. It was up 5.5% YTD coming into August 24, before considering its gain on the day. The index was also up 15% over the past 90 days. The index was up 38.5% from the close on April 1, 2020, and it was a whopping 55% from the V-bottom in March.

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