In this article, we'll take a look at the 10 worst performing S&P 500 stocks in 2022. If you'd like to explore similar stocks, you can also check out.
Legacy investors see a 26% drop in the S&P 500
British investor and Boston-based GMO co-founder Jeremy Grantham predicts the S&P 500 will fall 26% over the next 12 monthsreportedby Reuters on September 8. Grantham expects the S&P 500 to fall to 3,000 over the next 12 months, more than 20% below its current reading of around 3,850 on September 16. Mr. Grantham toorevealedwhich is selling high-yield bonds and the high-tech Nasdaq index, anticipating a "superbubble" bursting soonafterfor the experienced investor, it has entered its final stages.
As of September 16, the S&P 500 is down 20% year to date, the Nasdaq Composite Index is down 28% since the beginning of 2022, and the Dow is down 16% year to date. Ahead of the next FOMC meeting, scheduled for September 20-21, Wall Street anticipates another aggressive rate hike by a hawkish Fed. Investors are shying away from high-growth companies as they are the ones that are hit the hardest. Among the worst performing S&P 500 stocks in 2022 are Netflix, Inc. (NASDAQ:NFLX), Meta Platforms, Inc. (NASDAQ:Facebook) y NVIDIA Corporation (NASDAQ:NVDA).
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Our methodology
To create this list of the 10 worst-performing S&P 500 stocks in 2022, we reviewed S&P 500 stocks. We looked at their performance through September 16 and selected the companies that had some of the biggest declines to date.
The 10 Worst S&P 500 Stocks of 2022
10. Etsy, Inc. (NASDAQ:etsy)
Accumulated profitability on September 16: -48.64%
Number of hedge fund owners: 29
etsy, inc. (NASDAQ: ETSY) is an e-commerce company that operates two-way marketplaces to match buyers and sellers. The company's marketplace primarily offers vintage handmade items, including jewelry, knickknacks, and art, as well as other decorative items. On September 16, Etsy, Inc. (NASDAQ:ETSY) lost 48.64% of its year-to-date value.
On July 27, Etsy, Inc. (NASDAQ: ETSY) reported earnings for the second quarter of fiscal 2022. The company reported earnings per share of $0.94, beating estimates by $0.24. Company revenue for the quarter was $585 million, up 10.6% year-over-year and beating estimates by $28 million.
Although Etsy, Inc. (NASDAQ: ETSY) is among the worst performers in the S&P 500, Wall Street sees upside potential for the stock. On Aug. 16, Truist analyst Naved Khan raised his price target on Etsy, Inc. (NASDAQ: ETSY) to $130 from $115, reiterating a Buy rating on the stock. After meeting with company management, Khan is constructive about Etsy's (NASDAQ: ETSY) medium- and long-term growth story.
As of the end of the second quarter of 2022, 29 hedge funds were long Etsy, Inc. (NASDAQ: ETSY), with shares of the company worth $595.8 million. This compares to 43 positions in the prior quarter, with $668.5 million in bets.
Starting June 30Two Sigma Advisorowns approximately 1.55 million shares of Etsy, Inc. (NASDAQ: ETSY) and is the company's largest shareholder.
HereOakmark Funds wrote about Etsy, Inc. (NASDAQ: ETSY) in its Q2 2022 investor letter:
"We arouse interestEtsy (NASDAQ: ETSY)when Josh Silverman took over as CEO in 2017. The company has long been recognized as a great market, but the previous management was not focused on maximizing shareholder value. In a short period of time, Silverman transformed Etsy from a fringe non-profit organization into a faster-growing, higher-margin company. The pandemic helped accelerate already strong core business results as millions of new customers were introduced to the platform while stuck at home. But like so many other Covid-19 "winners," Etsy has fallen dramatically out of favor with investors since then, prompting us to take a closer look. After a 75% drop in its share price, the company is now trading at 3.5 times next year's sales, or just a low double-digit multiple of operating profit using our estimate of normalized margins. We believe this is an attractive price point for a unique digital marketplace with a long history of future growth. Please note that our commitment to Etsy is currently defined through options."
9. Teradyne, Inc. (NYSE:TER)
Accumulated profitability on September 16: -50.78%
Number of Hedge Fund Holders: 30
Teradyne, Inc. (NYSE:TER) is a leading global semiconductor company that designs and manufactures automated test equipment. As of the end of the second quarter of 2022, 30 hedge funds announced ownership of shares in Teradyne, Inc. (NYSE: TER). The total value of these holdings was $617.5 million, compared to $993 million in the prior 33rd quarter. Hedge fund sentiment on stocks is negative.
Wall Street is bearish on Teradyne, Inc. (NYSE:TER) and sees a slowing economy and deteriorating consumer market weighing on stocks. On July 28, Northland analyst Gus Richard lowered his price target on Teradyne, Inc. (NYSE:TER) to $85 from $90, maintaining a market return rating on the stock. The analyst noted that the company faces a slowdown in demand for smartphones and PCs. In July, Craig Hallum analyst Christian Schwab lowered his price target on Teradyne, Inc. (NYSE:TER) to $96 from $138 and shares downgraded from buy to hold.
As of September 16, Teradyne, Inc. (NYSE:TER) is down 50.78% since the beginning of 2022.
Starting June 30Alkeon Capital Managementis the largest shareholder in Teradyne, Inc. (NYSE:TER), with $264 million in company stock.
investment Management Company,steeple advisor, Teradyne, Inc. (NYSE:TER) mentioned in their Q1 2022 investor letter.HereThis is what the company said:
“Manufacturers of semiconductor test equipment and industrial robotsTeradino(NASDAQ:TER) fell after issuing a lower-than-expected sales forecast due to declining orders from its top customer. Semiconductor equipment companies as a group underperformed as investors feared a general slowdown in semiconductor demand as the global economy slows.
8. Paypal Holdings, Inc. (NASDAQ:PPPL)
Accumulated profitability on September 16: -51.83%
Number of Hedge Fund Holders: 97
On August 2, Paypal Holdings, Inc. (NASDAQ:PYPL) announced results for the second quarter of fiscal 2022. The company reported revenue of $6.8 billion, beating Wall Street estimates by $21.5 million. The company reported earnings per share of $0.93, beating expectations by $0.06. Despite reporting a strong quarter, shares of Paypal Holdings, Inc. (NASDAQ:PYPL) are down 51.83% year-to-date as of September 16.
On August 31, BofA analyst Jason Kupferberg raised his price target on PayPal Holdings, Inc. (NASDAQ:PYPL) to $114 from $94 and upgraded the stock to Neutral to Buy. On September 14, Raymond James analyst John Davis updated PayPal Holdings, Inc. (NASDAQ:PYPL) from Market Perform to Outperform and reiterated his $123 price target.
As of the end of the second quarter of 2022, 97 hedge funds held shares of Paypal Holdings, Inc. (NASDAQ:PYPL) worth $5.19 billion. That compares with 100 hedge funds with $6.21 billion in holdings in the prior quarter. Hedge fund sentiment on stocks is negative.
Starting June 30Fisher Wealth ManagementHe owns more than 17.3 million shares of Paypal Holdings, Inc. (NASDAQ:PYPL) and is the company's largest investor. The investment covers 0.85% of Ken Fisher's 13F portfolio.
HereMayar Capital wrote about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q2 2022 investor letter:
“During this quarter we bought sharesPayPal (NASDAQ:PYPL)the payment platform. PayPal has been one of the most notorious victims of brutal market recklessness in recent months, and its shares have plummeted.more than two thirdsbetween its peak in July and early March of this year. By taking PayPal through the Mayar Checklist process, we identified a company with a leadership position in a structurally growing market.
The company benefits from certain network effects while facing various competitive threats. As the company benefited from the shift to online trading during the pandemic, as well as stimulus checks issued in the US, its share price skyrocketed to absurd levels. However, as is often the case, the market overcorrected in February and this quarter offered potential shareholder pricing that essentially meant zero growth in the business. When life presents you with unreasonable salespeople, make lemonade!”
7. Caesars Entertainment Inc. (NASDAQ:CZR)
Accumulated profitability on September 16: -52.15%
Number of Hedge Fund Holders: 59
Caesars Entertainment Inc. (NASDAQ: CZR) is an American gaming and hospitality company that operates a chain of hotels and casinos in the United States. Starting June 30HG Vora Capital ManagementHe owns 5 million shares of Caesars Entertainment Inc. (NASDAQ:CZR) and is the company's largest shareholder.
On August 3, Cowen analyst Lance Vitanza lowered his price target for Caesars Entertainment Inc. (NASDAQ:CZR) to $87 from $105 while maintaining an upper rating on the stock. In August, B. Riley analyst David Bain reiterated his Buy rating on Caesars Entertainment Inc. (NASDAQ:CZR), but lowered his price target on the shares from $128 to $102. they were "sadly undervalued".
As of the end of the second quarter of 2022, 59 hedge funds were interested in Caesars Entertainment Inc. (NASDAQ:CZR) and owned $928.5 million of shares in the company. This compares to 73 positions in the prior quarter, with $1.53 billion in holdings.
Teaming up with Netflix, Inc. (NASDAQ:NFLX), Meta Platforms, Inc. (NASDAQ:FB) and NVIDIA Corporation (NASDAQ:NVDA), Caesars Entertainment Inc. year-to-date value.
6. Stanley Black & Decker, Inc. (NYSE:SWK)
Accumulated profitability on September 16: -53.99%
Number of Hedge Fund Holders: 32
Stanley Black & Decker, Inc. (NYSE: SWK) is a leading manufacturer of industrial tools and home appliances. The company operates in the United States, Canada, Europe and Asia. Wall Street is bearish on the company. On August 17, Deutsche Bank analyst Nicole DeBlase cut her price target on Stanley Black & Decker, Inc. (NYSE: SWK) from $126 to $111 and downgraded the stock from Buy to Hold. .
On July 28, Stanley Black & Decker, Inc. (NYSE:SWK) reported earnings for the second quarter of fiscal 2022. The company reported earnings per share of $1.77, below Wall Street expectations by $0, 36. The company's revenue for the quarter was $4.39 billion, below estimates by $349 million. On September 16, the shares are down 53.99% year to date.
As of the end of the second quarter of 2022, 32 hedge funds were long Stanley Black & Decker, Inc. (NYSE:SWK), holding $496.9 million of shares in the company. This compares to 38 positions in the prior quarter, with $922 million in holdings.
Starting June 30Greenhaven Partneris the principal investor in Stanley Black & Decker, Inc. (NYSE: SWK) and owns approximately 1.3 million shares of the company.
The worst performing S&P 500 stocks in 2022 include Stanley Black & Decker, Inc. (NYSE: SWK), Netflix, Inc. (NASDAQ:NFLX), Meta Platforms, Inc. (NASDAQ:FB) and NVIDIA Corporation (NASDAQ :NVDA), which have lost more than 50% of their cumulative value since September 16.
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divulgation. none.The 10 Worst S&P 500 Stocks of 2022was originally published on Insider Monkey.