The Year's Worst-Performing S&P 500 Stocks
- By Holly LaFon
Several stocks have declined precipitously from their 52-week highs, despite the S&P 500's continued rally.
On Thursday, U.S. stocks traded at record highs, with the index advancing 0.48% on its sixth straight session of gains. The index is also up 8.2% year to date and 17.7% for the past 12 months. Missing the rally have been companies constrained by negative circumstances that have caused investors to back away, such as sales declines, customer losses and commodity prices.
Warning! GuruFocus has detected 6 Warning Signs with FTR. Click here to check it out.
The intrinsic value of FTR
Frontier Communications (FTR) experienced the biggest drop, falling 73.58% from its 52-week high, with a 55.5% dive year to date. In Thursday's session, the stock finished with a price of $1.36 per share.
Frontier operates within the telecom sector, engaging in data and internet, voice, video services and equipment sales. Last April, it acquired the wireline operations in California, Texas and Florida from Verizon (VZ). The acquisition added $1.02 billion in revenue to Frontier in the first quarter, but it shed customers. Implementation of an automated collections system at Frontier also accelerated disconnects, while a halt of marketing efforts during the transition period led to fewer customers signing up. Frontier's first-quarter revenue excluding the Verizon business declined 6% year over year.
Like other telecom companies, increased competition, lower demand for voice services and the proliferation of substitutes have dogged Frontier in recent years. In the first quarter, it said it expected the trend to continue.
The growth stock Under Armour (UA) also plunged 58.1% from its 52-week high, falling 28.3% year to date. On Thursday, the athletic apparel company ended trading with a price of $19.49 per share.
Among Under Armour's challenges were a 1.1% decline in its sales to North America, where a battered retail environment prevailed and several of its wholesale customers filed for bankruptcy. Operating income from North America also fell 90.7%, followed by the EMEA region, which declined 44.2%. All other geographic markets saw increasing revenue and operating income.
Under Armour also had its first unprofitable quarter since going public in 2005. The company reported $2.27 million in net losses for the quarter, compared to $19.18 million in net income in the first quarter last year, as it endured lower sales and gross margins in sales to consumers, and higher costs related to its deals with retail stores and distribution channels, as well as in its online business.
While the S&P 500 Oil & Gas Exploration & Production Select Industry Index slid 0.5% over the past year, the worst performer relative to its 52-week stock price was Southwestern Energy Co. (SWN), off 56.19%. It also slid 35.3% year to date, compared to a 16.21% decline for the oil and gas index, ending trading at $6.67 per share on Thursday.
Houston-based Southwestern Energy is as natural gas company that focuses on both upstream exploration and production and midstream gathering and marketing services. In the first quarter of 2016, it produced a $1.2 billion net loss that included a $1.03 billion impairment charge on its natural gas and oil properties. It increased to $281 million net income in the first quarter of 2017, due to increasing natural gas, oil and natural gas liquid prices, as well as a reduction in operating costs, including a 40% workforce reduction, and production.
According to ratings agency Moody's, natural gas prices are expected to remain low for the next several years
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 6 Warning Signs with FTR. Click here to check it out.
The intrinsic value of FTR
