The stock market has enjoyed one of the biggest bull runs, since the end of the financial crisis. The Dow Jones and S&P 500 are currently trading at record highs heading into the New Year. Amidst the buzz, there are stocks that have felt the wrath of Wall Street even as other stocks continued to edge higher.
The top winners in the S&P 500 are up by an average of 100.3%. On the receiving end, the top 10 losers are down by an average of 42%. InfoTech is the best performing sector as it is up by more than 33% as the telecom services sector lags behind with a 12% loss.
Below are some of the worst performing stocks for 2017.
General Electric Company (NYSE:GE) -40%
General Electric has been in a free fall the entire year and the stock is currently nursing a loss of more than 40%. The steep decline has already forced the conglomerate to slash its dividend offering as it moves to conserve capital in a bid to revitalize growth.
The company has also slashed its full-year profit guidance from $1.6-$1.7 to $1.05-$1.10 a share an indication that things are not well. The stock has been the biggest laggard in the Dow Jones. The company’s woes have further been compounded by constant activist pressure for failing to deliver attractive capital returns
Chesapeake Energy Corporation (NYSE:CHK) -45%
Chesapeake has been a big disappointment in the energy sector for the better part of the year. The stock is currently trading at all-time lows after losing more than 45% in market value since the start of the year.
Investor’s confidence in the stock has taken a hit on the company carrying out a number of stock offerings that have led to a further dilution of the stock. Borrowing of capital at high-interest rates has also not gone well with investors accelerating the sell-off wave.
However, the stock could bounce back from current lows as oil prices continue to tick higher.
Signet Jewelers Ltd. (NYSE:SIG) -40%
A disappointing third quarter and a downward revision of full-year financial results all but affirms Signet Jewelers position as one of the biggest losers of the year. The stock is down by more than 40% for the year as the stock continues to face a lot of uncertainties.
Lower sales and disruptions due to credit portfolio transitions are some of the problems that continue to compound the stock’s woes on Wall Street. Sluggish margins also continue to dent investor’s confidence in the stock.
Range Resources Corp. (NYSE:RRC) -47%
The Independent oil and gas company has been trading lower even as oil prices continue to tick higher. The stock is already down by more than 47% as it continues to trade at all-time lows.
While the company’s earnings have shown recovery signs in the recent quarter, the company debt that currently stands at $3.9 billion continues to spook investors. A 45% year over year increase in expenditure is another concern that has not gone well with investors.
Envision Healthcare Corporation (NYSE:EVHC) -45%
The operator of long-term healthcare facilities has lost more than 45% in market value since the start of the year. While the stock has shown some recovery signs, it continues to trade near all-time lows as short sellers remain in full control.
Negative earnings reports is one of the concerns that appear to have spooked investors fuelling sell-off of the stock. Short interest in the stock currently stands at highs of 15%.
Under Armour Inc. (NYSE:UAA) -45%
Under Armour, has had one of its worst runs both in the market and in the industry in 2017. Product missteps, inventory problems and stiff competition from Nike and Adidas have all but dented investors’ confidence in the stock.
The stock has shed more than 45% of market value as investors reacted to the company’s sales entering the negative territory. Investors are increasingly questioning the company’s growth prospects after recent product missteps.
A turnaround in North America after a 12% sales decline in the recent quarter, is highly needed if the stock is to bounce back from current trading levels.
Baker Hughes, a GE company Class A (NYSE:BHGE)
Baker Hughes has been battered in the industry even as oil prices continue to show signs of edging higher. The stock has lost more than 50% of market value and is currently trading at levels last seen in 2009, at the peak of the financial crisis.
The company had its worst quarter after merging with General Electric a performance that seems to have spooked investors triggering a sell-off. It now awaits to be seen if an ongoing restructuring plan will help strengthen investor confidence in 2018.
Advance Auto Parts, Inc. (NYSE:AAP) -40%
Advance Auto Parts crushed analysts’ expectations in the recent quarter. Ever since the stock has been trading higher as it continues to erase losses accrued for the better part of the year. However, the stock is still down by 40%.
Concerned by the poor performance, the management has moved to strengthen the company’s competitive edge in a bid to fuel growth. Inventory optimization is one of the plays the company hopes will drive bottom line growth through improved sales. The company also plans to improve its in-store experience and sales team by reducing field operations.
Veritiv Corp (NYSE:VRTV) -45%
Veritiv is trying to make a comeback after a poor run. The stock has lost more than 45% of market value. The underperformance follows a disappointing showing on the earnings front. Earnings have been on the decline quarter over quarter, adversely affecting investor’s confidence in the company’s long arm prospects.
Debt load is another issue that continues to rattle investors as cash flow levels have dropped to zero. The company is struggling to collect receivables from struggling customers a deficiency that has led to the lowering of full year EBITDA guidance.
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