After the massive recovery stocks have made off their March 2020 coronavirus low, some analysts are calling for investors to be a bit more cautious in 2022. And while there’s definitely risk that some highflyers will fall back to Earth, there might be even more danger in stocks that suffered mightily in 2021. In the midst of a broad market rally in 2021, stocks that actually lost money during the year likely had something go wrong, be it government intervention, changing consumer sentiment or business mismanagement. Typically, companies that are misfiring continue to do so until some major change to their fundamentals occurs, making the stocks on this list cautionary tales.
That being said, there’s no doubt that a least a few of these names will get their act together in 2022 and snap back. The bottom line is that you should consult with your financial advisor if you plan on going bottom fishing with these underperformers from 2021.
Western Union Company (WU)
- Jan. 4, 2021 price: $21.77
- Nov. 26, 2021 price: $17.38
- Dollar change in price: -$4.39
- Percentage change in price: -20.17%
Western Union has suffered the same fate as many of its fellow payment processors in 2021. While the economy is slowly rebounding from the effects of the pandemic, consumer-to-consumer payment levels are still below pre-COVID-19 levels. Investors are unlikely to move back into the stock until processing volumes pick up significantly.
Teleflex Inc. (TFX)
- Jan. 4, 2021 price: $403.13
- Nov. 26, 2021 price: $321.50
- Dollar change in price: -$81.63
- Percentage change in price: -20.25%
Teleflex produces specialty medical devices, and its stock price lives and dies on the news surrounding those products. Although the stock has been a long-term winner, it suffered in 2020 during the pandemic and released bad news about a product recall in November 2021. The stock sold off nearly 17% in that month, amounting for the bulk of its year-to-date losses.
Twitter Inc. (TWTR)
- Jan. 4, 2021 price: $54.53
- Nov. 26, 2021 price: $43.07
- Dollar change in price: -$11.46
- Percentage change in price: -21.02%
Wall Street investors seem to have a love-hate relationship with Twitter, and lately its been the latter. After a decent first half of the year, the stock has traded down on poor earnings, a general selloff of growth stocks and the resignation of CEO Jack Dorsey in November. Investors may wait to see how former chief technology officer Parag Agrawal handles the new role as CEO before piling back into the stock.
Zimmer Biomet Holdings (ZBH)
- Jan. 4, 2021 price: $153.16
- Nov. 26, 2021 price: $120.85
- Dollar change in price: -$32.31
- Percentage change in price: -21.10%
Zimmer Biomet Holdings is a medical device company with a lot of things working against it right now. First off, earnings slowed during the pandemic and have yet to recover. Margins have contracted and company management has slashed earnings and revenue guidance for the year, making for black clouds that may take a bit of time to recover from.
Fidelity National Information Service (FIS)
- Jan. 4, 2021 price: $139.91
- Nov. 26, 2021 price: $107.98
- Dollar change in price: -$31.93
- Percentage change in price: -22.82%
Shares of Fidelity National Information Service began tumbling in May and have been more or less straight down ever since. The provider of cloud-based technology for financial services companies just isn’t keeping up with analyst earnings expectations thus far in 2021. In an environment where many companies are exceeding expectations, this stock will likely be held back until it can keep up with estimates.
Wynn Resorts Ltd. (WYNN)
- Jan. 4, 2021 price: $106.90
- Nov. 26, 2021 price: $82.27
- Dollar change in price: -$24.63
- Percentage change in price: -23.04%
Wynn Resorts suffered in 2021 from a multitude of factors, including another Chinese crackdown on junket operators. This seems to be a perennial problem with Wynn and other Macau-focused casino stocks. However, this time the company’s problems have been exacerbated by the impressive persistence of the coronavirus pandemic. Until these underlying concerns go away, you may want to steer clear of Wynn Resorts.
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Lamb Weston Holdings Inc. (LW)
- Jan. 4, 2021 price: $75.67
- Nov. 26, 2021 price: $58.04
- Dollar change in price: -$17.63
- Percentage change in price: -23.30%
Rising inflation is worrying investors about food products company Lamb Weston’s stock. In addition to rising packaging and oil costs, the company is also spending about $415 million to upgrade its facilities, so investors are taking more of a “wait and see” attitude with Lamb Weston shares until these headwinds subside.
Discovery Comm Cl A (DISCA)
- Jan. 4, 2021 price: $30.63
- Nov. 26, 2021 price: $23.28
- Dollar change in price: -$7.35
- Percentage change in price: -24.00%
Discovery Communications stock has had quite a wild ride in 2021. After shares rose more than 100% in the first quarter, they got absolutely decimated shortly thereafter on a slew of analyst downgrades and the forced liquidation of $20 billion in shares by investment firm Archegos Capital Management. Fear of increased competition in the streaming space and uncertainty over the announced merger of AT&T’s WarnerMedia and Discovery’s entertainment and sports platform are also ongoing concerns.
IPG Photonics Corp (IPGP)
- Jan. 4, 2021 price: $218.21
- Nov. 26, 2021 price: $165.77
- Dollar change in price: -$52.44
- Percentage change in price: -24.03%
Disappointing earnings has been the weight around the neck of IPG Photonics Corp. in 2021. The fiber laser technology company reported second quarter earning below market expectations, then further hurt its own cause by offering future guidance below expectations. In a market where investors are looking for companies rebounding after depressed COVID-19-era earnings, IPG Photonics is coming up short.
MarketAxess Holdings (MKTX)
- Jan. 4, 2021 price: $562.78
- Nov. 26, 2021 price: $410.42
- Dollar change in price: -$152.36
- Percentage change in price: -27.07%
MarketAxess Holdings offers a fixed-income trading platform that benefits from market volatility, as traders are more active and generate higher fees for the company. This made for a great 2019 and 2020 for the company, with shares rising 77.34% and 50.13%, respectively. However, volatility has been limited in 2021, driving trading volumes down and the share price of MarketAxess Holdings with it.
Viatris Inc (VTRS)
- Jan. 4, 2021 price: $18.54
- Nov. 26, 2021 price: $13.03
- Dollar change in price: -$5.51
- Percentage change in price: -29.72%
Generic drug manufacturer Viatris is still a big unknown for investors, which is likely keeping a lid on the stock. The company was formed barely over a year ago through the combination of Mylan and Upjohn, a legacy division of pharmaceutical giant Pfizer. The company carries a huge debt load and is unprofitable, so it’s likely a feast-or-famine stock for investors going forward.
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Activision Blizzard (ATVI)
- Jan. 4, 2021 price: $89.90
- Nov. 26, 2021 price: $61.36
- Dollar change in price: -$28.54
- Percentage change in price: -31.75%
Activision Blizzard hares have been on a pronounced downtrend since the middle of the year, including its worst trading day in 13 years on Nov. 3, 2021, when shares dropped 14% in a single day. The big one-day drop was thanks to game delays, analyst downgrades and the stepping down of co-head Jen Oneal, who said she lacked faith the company could turn around its culture of sexual harassment. Later that month, shares fell again after the revelation that Activision Blizzard’s CEO was aware for years of sexual harassment and misconduct at the company.
Citrix Systems (CTRX)
- Jan. 4, 2021 price: $128.33
- Nov. 26, 2021 price: $83.52
- Dollar change in price: -$44.81
- Percentage change in price: -34.92%
Citrix Systems is undergoing an expensive restructuring, expected to cost the company between $130 million and $240 million. The company also lost its CEO, David Henshall, when he stepped down in October. The uncertainty surrounding the stock has dragged it steadily down almost all year.
Global Payments Inc. (GPN)
- Jan. 4, 2021 price: $207.22
- Nov. 26, 2021 price: $128.07
- Dollar change in price: -$79.15
- Percentage change in price: -38.20%
Global Payments is a software and technology company that processes payments, much like PayPal. And just like its competitor, the stock has suffered in 2021 through a combination of decreased revenue forecasts, competition and slowing payments due to the coronavirus. Global Payments is actually considered an attractive bounceback candidate by some analysts, but first it must get through its recent troubles.
Las Vegas Sands (LVS)
- Jan. 4, 2021 price: $57.95
- Nov. 26, 2021 price: $35.44
- Dollar change in price: -$22.51
- Percentage change in price: -38.84%
Even though the company has “Las Vegas” in its name, the Las Vegas Sands derives most of its revenue from its Macau-based operations. Just like Wynn Resorts, the company is currently enduring another Chinese crackdown on junket operators, keeping high rollers out of its properties. Additionally, other gamblers are being held back by the coronavirus and related travel bans.
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