18 Worst Performer Stocks of S&P 500 Index 2010 Edition

Worst Performer Stocks of S&P 500 index Logo - 2010
Worst Performer Stocks of S&P 500 index Logo - 2010

Intro

This article will discuss about the 18 Worst Performer Stocks of S&P 500 index for 2010. I like to check the worst performer for next year 2011 trading idea. Did you know? Some of the worst performer stocks in 2009 have became the best performer stocks during 2010 such as MetroPCS (Ticker: PCS), Citigroup (Ticker: C), Zions Bancorp (Ticker: Zion) and many more. So, what are the worst performer stocks of S&P Index for 2010? Please check the following table.

I hope by providing this list, many of us as an independent investor can invest smartly for 2011. Who knows the 2010 laggards may become the 2011 leaders similar to previous year again.

What is S&P 500 Index?

The S&P 500 index is one of the most well known US large cap indexes and it is regarded as the best single estimate of the large cap U.S. stocks market. The index was first available in 1957. The index has assets comprising approximately US$ 915 billion of the US$ 3.5 trillion benchmarked, with index. The largest market cap stock in S&P 500 index is Exxon Mobil (Ticker: XOM) with 379 billion capitalization as of January 6th, 2011. The index includes 500 leading companies or stocks in many different sector industries of the U.S. economy. It has about 75% coverage of U.S. equities or stocks.


Worst Sectors of S&P 500 Index

Most of the companies in S&P 500 can be divided into 9 sectors such as:

  1. Basic Materials
  2. Industrials Goods
  3. Conglomerate
  4. Services
  5. Consumer Goods
  6. Health Care
  7. Financials
  8. Technology
  9. Utilities

By end of 2010, Out of 18 Bottom stocks of S&P 500, the 3 worst performer sectors are Services, Industrial Goods and Basic Materials. Based on the list, the 18 worst performer sectors are as follows:

  • Services – 6 companies
  • Basic Materials – 3 companies
  • Industrial Goods – 3 companies
  • Technology – 2 companies
  • Utilities – 2 companies
  • Consumer Goods – 1 company
  • Financial – 1 company

If you are interested in Top Performer Stocks of S&P 500 index for 2010, please check:

18 Worst Performer Stocks of S&P 500 Index 2010 Edition

(click column header to sort results)
Rank  
Company  
Ticker  
Industry  
P/E  
LT EPS  
PEG  
Ave Rating  
2010 YTD  
500
Dean Foods Company
DF
Consumer Goods
10
13%
0.8
2.93
-50%
499
H&R Block, Inc.
HRB
Services
8.2
10%
0.82
2.6
-46%
498
Apollo Group, Inc.
APOL
Services
10.9
12%
0.94
2.48
-35%
497
Diamond Offshore Drilling, Inc.
DO
Basic Materials
9.1
8%
1.07
3.24
-34%
496
SUPERVALU INC.
SVU
Services
N/A
4%
N/A
3
-29%
495
Western Digital Corp.
WDC
Technology
6
10%
0.61
2.68
-25%
494
PulteGroup, Inc.
PHM
Industrial Goods
N/A
10%
N/A
2.88
-23%
493
AK Steel Holding Corporation
AKS
Basic Materials
193.9
-225%
N/A
2.92
-23%
492
Southwestern Energy Company
SWN
Basic Materials
21.4
23%
0.94
2.08
-22%
491
R.R. Donnelley & Sons Company
RRD
Services
32.8
11%
2.98
1.6
-20%
490
Micron Technology, Inc.
MU
Technology
4.6
7%
0.62
2.29
-20%
489
Vulcan Materials Company
VMC
Industrial Goods
N/A
9%
N/A
2.7
-20%
488
Visa Inc.
V
Services
20
20%
1.03
1.58
-19%
487
The New York Times Company
NYT
Services
11.5
18%
0.65
3.29
-19%
486
FirstEnergy Corp.
FE
Utilities
13.8
7%
2.07
2.93
-18%
485
L-3 Communications Holdings, Inc.
LLL
Industrial Goods
9.1
8%
1.07
2.7
-18%
484
Boston Scientific Corporation
BSX
Healthcare
N/A
9%
N/A
2.77
-17%
483
PPL Corporation
PPL
Utilities
14.3
4%
3.58
2.4
-17%

500. Dean Foods Company

Dean Foods Company is a consumer goods company and part of dairy products industry that processes and distributes fresh milk and other dairy products. It operates through two areas namely: Dairy Group and WhiteWave Foods. The Dairy group makes, markets, and distributes a wide variety of branded and private label (OEM) dairy case products to retailers, foodservice outlets, distributors, educational institutions and governmental entities across the United States. The products include milk, creamers, ice cream, juices and teas.

For 2010, Dean Foods’ stocks lost 50% of its value during 2010 due to rising prices of commodities such as raw milk, butterfat, soybeans and sugar. It was also getting pinched by big-box stores and supermarket chains looking for price concessions or cuts due to low consumer demands.

For the last 12 quarters, Dean Foods (ticker: DF) has reported 5 positive quarters, 5 negative quarters & 2 In-Line quarter. This past quarter, Dean Foods announced actual EPS of $0.130 which is lower than Mean EPS of $0.207 on 11/09/2010.

499. H&R Block, Inc

H&R Block Inc, also known as H&R Block, is a services sector company and part of personal services industry which has subsidiaries that provide tax, banking, and business and consulting services. H&R Block is known for its Tax Services segment. The Tax Services sector provides income tax return preparation, electronic filing and other services and products related to income tax return preparation to the general public primarily in the United States, Canada and Australia. It offers the H&R Block Prepaid Emerald MasterCard and Emerald Advance lines of credit through H&R Block Bank (HRB Bank).

For the last 12 quarters, H&R Block (ticker: HRB) has reported 9 positive quarters, 2 negative quarters & 1 In-Line quarter. This past quarter, H&R Block announced actual EPS of -$0.350 which is higher than Mean EPS of -$0.383 on 12/07/2010.


498. Apollo Group, Inc

Similar to H&R Block, Apollo Group is also a services sector company. It is part of education & training services industry which derived most of its revenues by providing higher education programs for working adults and military, with the large majority of its students attending its University of Phoenix (UOP) unit. UOP offers its education programs at campuses, as well as online courses. The main education programs consist mostly of programs in business, education, information technology, criminal justice and nursing. APOL offered programs and services in 40 states, the District of Columbia, Puerto Rico, Canada, Latin America, and Europe.

For the last 12 quarters, Apollo Group (ticker: APOL) has reported 8 positive quarters, 1 negative quarters & 3 In-Line quarter. This past quarter, Apollo Group announced actual EPS of $1.310 which is in-line with the Mean EPS of $1.296 on 10/13/2010.

497. Diamond Offshore Drilling, Inc

Diamond Offshore Drilling is considered as a basic material sector company. It is also part of oil & gas drilling & exploration industry which is engaged in contract drilling of offshore oil and gas wells, with a focus on deepwater drilling. The company owned 47 mobile offshore drilling rigs with the breakdown as follows: 32 semisubmersible rigs, 14 jackup rigs, and one drillship. The oil rigs operated in the Gulf of Mexico (GOM), the U.K. North Sea, South America, Africa, Australia and Southeast Asia. Majority of its revenue is coming from outside the United States. Diamond Offshore offers a range of services worldwide in various markets, including the deepwater, harsh environment, conventional semisubmersible and jack-up markets.

For the last 12 quarters, Diamond Offshore Drilling (ticker: DO) has reported 5 positive quarters, 5 negative quarters & 2 In-Line quarter. This past quarter, Diamond Offshore announced actual EPS of $1.270 which is lower than the Mean EPS of $1.342 on 10/21/2010.


496. SUPERVALU Inc

Supervalu Inc is also another supermarket service company. It has grown into the largest U.S. food distributor to supermarkets, and the second largest conventional food retailer in the U.S. Retail operations are conducted through limited assortment stores, food stores, and combination food and drug stores. The company operated more than 2,300 multi-format retail food stores and was the primary grocery supplier to approximately 1,940 stores in addition to its own retail operations.

Part of Supervalu food stores are Acme, Albertson's, Bristol Farms, Cub Foods, Farm Fresh, Hornbacher's, Jewel-Osco, Lucky, Shaw's, Shop 'n Save, Shoppers Food & Pharmacy and Star Market.

For the last 12 quarters, Supervalu (ticker: SVU) has reported 8 positive quarters, 2 negative quarters & 2 In-Line quarter. This past quarter, Diamond Offshore announced actual EPS of $0.280 which is lower than the Mean EPS of $0.288 on 10/19/2010.

495. Western Digital Corporation

Western Digital Corp is a technology company. It designs, develops, produces, and markets hard disk drives. The company's hard drives are used in desktop PC, notebook computers, enterprise servers, network attached storage devices, and consumer electronics products such as personal/digital video recorders, and satellite and cable set-top boxes. Its hard drives are used in CE applications, such as digital video recorders, and satellite and cable set-top boxes. WD also sells its hard drives as stand-alone storage products and integrates them into finished enclosures, embedding application software and offering the products as WD-branded external storage appliances

For the last 12 quarters, Western Digital (ticker: WDC) has reported 11 positive quarters, 1 negative quarters & 0 In-Line quarter. This past quarter, WD announced actual EPS of $0.840 which is higher than the Mean EPS of $0.810 on 10/19/2010.


494. PulteGroup, Inc

PulteGroup Inc is an Industrial Goods sector company. It is part of residential construction industry and is a holding company whose subsidiaries engage in the homebuilding and financial services businesses. The Company's direct subsidiaries include Pulte Diversified Companies, Inc., Del Webb Corporation (Del Webb), Centex Corporation (Centex) and other subsidiaries engaged in the homebuilding business. The Company also has mortgage banking operations, conducted through Pulte Mortgage LLC (Pulte Mortgage), and title operations. Homebuilding, the Company's core business, is engaged in the acquisition and development of land primarily for residential purposes within the continental United States and the construction of housing on such land targeted for first-time, first and second move-up, and active adult home buyers.

For the last 12 quarters, PulteGroup (ticker: PHM) has reported 3 positive quarters, 9 negative quarters & 0 In-Line quarter. This past quarter, PHM announced actual EPS of -$2.630 which is lower than the Mean EPS of -$0.047 on 11/03/2010.

493. AK Steel Holding Corporation

AK Steel Holding Corporation known as AK Holding is a basic materials sector company. AKS Steel Holding Corp is known as part of Steel & Iron Industry. It is a producer of flat-rolled carbon, stainless and electrical steels, and tubular products through its wholly owned subsidiary, AK Steel Corporation (AK Steel). The AK Steel operations consist of seven steelmaking and finishing plants located in Indiana, Kentucky, Ohio and Pennsylvania that manufacture flat-rolled carbon steels, including coated, cold-rolled and hot-rolled products, and specialty stainless and electrical steels that are sold in hot band, and sheet and strip form.

For the last 12 quarters, AK Steel (ticker: AKS) has reported 9 positive quarters, 2 negative quarters & 1 In-Line quarter. This past quarter, AKS announced actual EPS of -$0.540 which is lower than the Mean EPS of -$0.340 on 10/26/2010.


492. Southwestern Energy Company

Southwestern Energy Company is an independent energy company engaged in natural gas and crude oil exploration, development and production (E&P). Southwestern Energy also focuses on making and capturing additional value through its natural gas gathering and marketing businesses through its Midstream Services. Southwestern Energy's operations are primarily focused on the Fayetteville Shale, an unconventional reservoir located in the Arkoma Basin in Arkansas

For the last 12 quarters, Southwestern Energy (ticker: SWN) has reported 7 positive quarters, 1 negative quarters & 4 In-Line quarter. This past quarter, SWN announced actual EPS of $0.460 which is higher than the Mean EPS of $0.450 on 10/28/2010.

491. R.R. Donnelley & Sons Company

R.R. Donnelley & Sons Company is a services provider of integrated communications. The R.R. Donnelley & Sons provides provide premedia, printing, logistics and business process outsourcing products and services. The company operates primarily in the commercial print portion of the printing industry.

For the last 12 quarters, R.R. Donnelley & Sons (ticker: RRD) has reported 8 positive quarters, 1 negative quarters & 3 In-Line quarter. This past quarter, RRD announced actual EPS of $0.440 which is higher than the Mean EPS of $0.430 on 11/03/2010.


Disclosure: I also have no position in any of these companies. Please do your own research for additional details. Please trade and invest responsibly. Past Performance is No Guarantee of Future Results.


Online Stock Brokers

Many investors will need a stock broker to trade these stocks either buy stock or sell stock (long as well as short). The following is my recommended stock brokerages:

  • Etrade – Trader can trade stock for $9.99 per trade
  • Fidelity – Investor can buy stock for $8.95 per trade and buy Fidelity mutual funds for free.
  • eOption – eOption’s customer can trade stock for $3.00 per trade
  • SogoTrade – similar to eOption, trader can buy stock online for $3.00 per trade.


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6 comments

davidrio profile image

davidrio 5 years ago from Lisbon

Very nice written and informative chan. Do you think any of those will be a good candidate for short positions in 2011?These stocks have dropped a lot don`t know if this downward spiral has lost the steam


chan0512 profile image

chan0512 5 years ago from Camarillo, CA Author

Davidrio,

I wouldn't just short stocks because they are the laggards from previous year. Like 2009 laggards, some of these laggards stocks recovered during 2010 such as Zion Bancs, MetroPCS. If you have shorted these stocks, you will lose your money since some of these stock gain 60-80% during 2010.

I actually like some of these laggards stock such as SWN, RRD, AKS and Visa. I'll probably invest accordingly if there is some sort small of correction (3-5%).

If I were you, I'll look at the best performer for 2010 and look at the most overrated p/e stocks. Or even be ready to short the index. I think it is due for small correction. But just be ready... Good luck.


Simone Smith profile image

Simone Smith 5 years ago from San Francisco

Thank you for this extensive overview! I found it to be a most fascinating read - and really appreciated the helpful table, too. Thanks for writing!


chan0512 profile image

chan0512 5 years ago from Camarillo, CA Author

Simone Smith,

Thanks for your kind words. More to come definitely. I find tables or pictures to be useful in any article. Thanks again for stopping by!


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas

Excellent Hub chan0512, you are the man when it comes to finance and investment. I love that you always have a disclaimer for people to do their own homework! Your fan!


chan0512 profile image

chan0512 5 years ago from Camarillo, CA Author

LillyGrillzit,

Thanks for your support my friend. I'm glad if you find this article useful. More to come for finance and investment articles. Please check back later!

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