Ralph Lau­ren, SanDisk, Ch­e­sa­peake worst S&P 500

Financial Mirror (Cyprus) - - FRONT PAGE - By Jon C. Ogg

This past week was yet an­other one that took some of the charge out of the bulls. The Dow posted mar­ginal gains on Fri­day, but the week’s drop ticked the Dow ever so slightly into the red for 2015. The close of 17,712.66 put the in­dex down 0.6% year to date. The S&P 500 in­dex closed up al­most five points at 2,061.02 on Fri­day, giv­ing the S&P’s year-to-date re­turn as a whop­ping 0.1% for 2015.

The S&P 500 is more widely rep­re­sen­ta­tive of the econ­omy than the Dow, so, some of the losers are just what you would ex­pect: en­ergy with four of the ten lag­gards, and three in tech­nol­ogy. In­ter­est­ingly enough, three of the big­gest losers have lag­ging con­sumer themes that you might not have ex­pected.

(NAS­DAQ: SNDK) has had its prob­lems with guid­ance of late, and the move to SSDs and flash mem­ory is cur­rently pass­ing SanDisk by. Its most re­cent close of $64.59 gave it a year-to-date per­for­mance of -33.83%. SanDisk has a 52-week trad­ing range of $63.56 to $108.77 and a con­sen­sus an­a­lyst price tar­get of $82.66 — although that con­sen­sus tar­get is rapidly com­ing down.

SanDisk Corp.



En­sco PLC


(NYSE: RL) was shock­ing to see on the list. Per­haps its U.S. pric­ing is mak­ing it harder to sell the goods now, but much of its ma­te­ri­als and man­u­fac­tur­ing is out­side of the United States. The higher-end ap­parel shares are now down 28.87% so far in 2015. Its $131.22 close com­pares to a 52-week range of $127.29 to $187.49. Ralph Lau­ren also has a con­sen­sus price tar­get of $148.95.

(NYSE: ESV) is the third largest loser of the S&P year to date, but it is the worst per­form­ing of all S&P 500 stocks tied to oil and gas. Trad­ing at $21.28, its share per­for­mance is -28.49% so far in 2015. En­sco has a 52-week range of $19.78 to $55.89 and a con­sen­sus price tar­get of $26.48. Its mar­ket cap of $5 bln makes it smaller than many large oil and gas play­ers in the red this year.

Ch­e­sa­peake En­ergy Corp.

(NYSE: CHK) may no longer have Aubrey McClen­don to kick around and blame for its woes, but it is the fourth big­gest loser of the S&P. Its fo­cus on nat­u­ral gas just can­not es­cape the cur­rent oil and gas sec­tor cli­mate. With shares at $14.03, its mar­ket cap is now down to $9.3 bln. Ch­e­sa­peake has a 52-week trad­ing range of $13.38 to $29.92 and a con­sen­sus tar­get price of $18.84.

Di­a­mond Off­shore Drilling Inc.

(NYSE: DO) is the fifth worst S&P 500 stock so far for 2015, with its share per­for­mance of - 27.25%. Oil and gas, with more ex­pen­sive off­shore costs — what more needs to be said? They see the same oil and gas prices as the mar­ket. Trad­ing at $26.62, it has a 52week range of $26.02 to $55.37. The con­sen­sus an­a­lyst price tar­get is $26.42.

(NAS­DAQ: FOSL) may have jew­ellery, hand­bags, small leather goods, belts, sun­glasses, soft ac­ces­sories and se­lected ap­parel, but its ex­po­sure to watches may make the com­pany en­emy num­ber one for in­vestors now that the smart­watch craze is com­ing. The real out­come re­mains to be seen, but in­vestors have ex­ited in droves, and Fos­sil now is the sixth big­gest loser of the S&P 500. At $81.76, the stock is down by 26.17% year to date. Fos­sil has a $92.07 con­sen­sus price tar­get and a 52-week range of $79.50 to $119.35.

(NAS­DAQ: MAT) may seem like a sur­prise loser here. Af­ter all, toys be­ing

Fos­sil Group Inc.

Mat­tel Inc.

a top loser? It turns out that Bar­bie has given up her lus­tre, and the com­pany is prob­a­bly not a big fan of the suc­cess of Frozen and other fran­chises that have taken from its sales. With shares at $22.61, its per­for­mance is -25.92% year to date. Mat­tel has a 52-week range of $22.44 to $40.79 and a con­sen­sus price tar­get of $25.94. Also, is Mat­tel’s 6.7% div­i­dend yield sus­tain­able at $1.52 per year? The con­sen­sus an­a­lyst earn­ings es­ti­mates are $1.55 per share for 2015 and $1.60 for 2016.

Na­tional Oil­well Varco Inc.

(NYSE: NOV) is on the very heavy equip­ment side of the oil and gas sec­tor. It makes mas­sive rigs and struc­tures, and the rig count has been get­ting slashed for more than just the month of March. Trad­ing at $49.25, this is the eighth worst S&P stock with per­for­mance of -24.16% year to date. It has a 52-week range of $46.08 to $86.55, yet it still has a $20 bln mar­ket cap. Its con­sen­sus price tar­get is $55.10.

Mi­cron Tech­nol­ogy Inc.

(NAS­DAQ: MU) is the king of DRAM and has ex­panded with flash and other mem­ory prod­ucts. Still, its big turn­around days have passed by and now it has to be con­sid­ered a value stock. Its shares now trade at $26.67, which makes its per­for­mance -23.8% so far — the ninth worst S&P 500 stock. Mi­cron’s 52-week range is $21.02 to $36.58, and it has a con­sen­sus price tar­get that still is all the way up at $41.47. Some bulls will need to tem­per ex­pec­ta­tions here it seems, but Mi­cron does trade at less than eight times the con­sen­sus 2015 earn­ings es­ti­mates.

(NYSE: HPQ) is the tenth big­gest loser in the S&P 500 so far in 2015. The per­sonal com­put­ing, print­ing and in­for­ma­tion tech­nol­ogy ser­vices gi­ant just can­not get its breakup to hap­pen soon enough. With shares at $31.49, its per­for­mance this year is so far -21.1%. HP has a 52-week range of $31.03 to $41.10 and a con­sen­sus price tar­get of $40.22. A re­cent div­i­dend hike just does not mat­ter to in­vestors right now, and nei­ther does a P/E ra­tio of less than 9.

24/7 Wall St. would re­mind read­ers that in­vestors have used ev­ery sin­gle pull­back for the past three years as an op­por­tu­nity to buy stocks. They may not buy the big­gest losers, but they have used pull­backs as buy­ing op­por­tu­ni­ties.

One day that will not hold true. Un­til then, keep in mind that the Dow and S&P 500 have not had a for­mal 10% cor­rec­tion in quite some time.

Hewlett-Packard Co.

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