Despite The Market Rally, These 5 Big, Brand Name Stocks Are Weak
The major stock market indices have rallied steadily since the April lows — it’s been a decent 3-month run for both the Standard & Poor’s 500 and for the Nasdaq Composite. Although overall market strength is measurably good, some well known stocks with highly recognizable brand names have not been going along with the up trend.
These 5 have gone the other way — actually declining in price:
Owens Illinois — the Ohio-based packaging maker, founded way back in that memorable stock market year of 1929, is said to be facing stiff competition and a diminishing market for the glass beer bottles they manufacture. The stock traded at 36 just 4 years ago — now you can pick it up at 16.83, a more than 50% drop.
Chicos FAS — The apparel maker missed analysts estimates of quarterly earnings last time around and on Wall Street, that’s a no-no which often results in shares being sold. It’s a cyclical industry and all, but now trading at 8.81, that puts Chicos a long way from its 2014 peak of 17.50. For what it’s worth, the company is paying a 3.95% dividend at this level.
Tupperware — This stock has dropped from 69 just last year to 40.45 last time I checked it. First quarter earnings came in less than expected — Tupperware announces 2nd quarter results next week, on July 25th. The short float is high at 8.32%. The dividend yield at this price comes to 6.68%.
Stifel — The St. Louis based investment firm has been around in one form or other since 1890. The stock peaked at 64 earlier this year and now trades at 54.28. As you can see on the point-and-figure price chart, Stifel has broken through the up trend line that had been in place since 2016. Earnings per share have been very good and the stock is on the buy list of a number of analysts. The financial sector in general has been off lately and Stifel’s gone along with the downward movement.
Tata Motors — The Mumbai-based car manufacturer trades on the New York Stock Exchange. They’ve been in business since 1945. Recently the stock has declined steadily from a high of 51 in 2015 to its recent price of 18.44. Tata is starting to look like a value stock here with a price/earnings ratio of 9 and now trading at an 8% discount to its book value.
China Mobile — The big wireless communications company is based in Hong Kong and trades on the New York Stock Exchange. The stock peaked at just above 70 in 2015 and has traded in a down trend since then. It now goes for 43.53. This is another one that almost looks like a value stock with that combination of a price/earnings ratio of 10.45 and price-to-book at a low 1.21.
Speaking of value stocks, I wrote a long-form piece about that very subject right here.
I do not hold positions in these investments. No recommendations are made by me one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.