(List compiled by Andrew Dominguez. Data sourced from Finviz.)
Amidst an overarching climate of uncertainty, John Buckingham of The Prudent Speculator sees a number of possible investing opportunities among the stocks that have performed the worst since July.
While investors should remain cautious, Bucking urges his readers to keep their faith in equities.
“We’ve endured plenty of scary sell-offs in the 24+ years. Just last year, for example, stocks dropped 17% between April 23 and July 2, yet the S&P 500 still finished the year with a 15% total return. And who can forget the drama in March 2009 when the S&P 500 was in free fall, off 28% at its lowest point, only to end that tumultuous year with a 26% increase?”
One reason to stick to stocks, particularly those that pay regular dividends, is the long-term returns of stocks relative to bonds. His Buckingham Portfolio boasts a dividend yield of 2.5%, which beats the 2.4% yield on the benchmark 10-year US Treasury.
He also spots some positive economic indicators. Decreasing oil prices should cheer up cash-strapped consumers. And a “very accommodative” Fed, which is keeping interest rates near zero for the foreseeable future, should continue to provide a “positive environment for equity investors.”
The market recovery might not occur for quite sometime (or it may happen tomorrow, who knows?) but Buckingham and The Prudent Speculator “think that long-term-oriented investors should be taking advantage of the sale that Wall Street is now having.”
Here are the 10 “battered” stocks that Buckingham thinks could be attractive investments for those “looking to do a little buying.” These are dividend stocks with share prices that have plummeted since July 7. Do you think any of these are good picks?
Note: Buckingham is “partial” towards these names and does not recommend them outright. Instead, use this list as a starting point for your own research.
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List sorted by share price performance (month).
1. Cooper Tire & Rubber Co. (CTB): Rubber & Plastics industry with a market cap of $674.28M and dividend yield at 3.88%. Share prices have fallen 44.66% over the past month. It is a manufacturer and marketer of replacement tires. It focuses on the manufacture and sale of passenger and light and medium truck replacement tires. It also distributes tires for racing, medium truck and motorcycles that are manufactured at the Company’s subsidiaries. Its International Tire Operations segment has affiliated operations in the United Kingdom and two joint ventures in the People’s Republic of China (PRC).
2. Navios Maritime Holdings Inc. (NM): Shipping industry with a market cap of $297.57M and dividend yield at 8.19%. Share prices have fallen 42.88% over the past month. It is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of dry bulk commodities, including iron ore, coal and grain. As of December 31, 2009, Navios Holdings’ core fleet (excluding Navios South American Logistics Inc. (Navios Logistics)), the average age of which is approximately 4.4 years, consisted of a total of 60 vessels, aggregating approximately 6.6 million deadweight tons (dwt). It also time charters in and operates a fleet of five Ultra Handymax, two Handysize, 10 Panamax, and 10 Capesize vessels under long-term time charters, 17 of which were in operation as of December 31, 2009, with the remaining 10 scheduled for delivery on various dates.
3. STMicroelectronics NV (STM): Broad Line Semiconductor industry with a market cap of $5.74B and dividend yield at 6.34%. Share prices have fallen 36.20% over the past month. It is an independent semiconductor company that designs, develops, manufactures and markets a range of semiconductor products used in a variety of microelectronic applications, including automotive products, computer peripherals, telecommunications systems, consumer products, industrial automation and control systems. Its segments include Automotive, Consumer, Computer and Communication Infrastructure (ACCI); Industrial and Multisegment Sector (IMS), and Wireless. Its products include discretes, microcontrollers, Smartcard products, standard commodity components, micro-electro-mechanical systems (MEMS) and advanced analogue products, application-specific standard products (ASICs) and application-specific standard products (ASSPs) for analogue, digital, and mixed-signal applications.
4. Seagate Technology PLC (STX): Data Storage Devices industry with a market cap of $4.68B and dividend yield at 6.62%. Share prices have fallen 34.89% over the past month. It designs, manufactures, markets and sells hard disk drives. It produces a range of disk drive products addressing enterprise applications, where its products are primarily used in enterprise servers, mainframes and workstations; client compute applications, where its products are used in desktop and notebook computers; and client non-compute applications, where its products are used in a variety of devices, such as digital video recorders (DVRs), and other consumer electronic devices, such as personal data backup systems, portable external storage systems and digital media systems. It also provides storage services for small- to medium-sized businesses, including online backup, data protection and recovery solutions.
5. Protective Life Corp. (PL): Life Insurance industry with a market cap of $1.52B and dividend yield at 3.96%. Share prices have fallen 30.33% over the past month. It provides financial services through the production, distribution, and administration of insurance and investment products. Its segments include Life Marketing, Acquisitions, Annuities, Stable Value Products and Asset Protection.
6. Marathon Oil Corporation (MRO): Oil & Gas Refining & Marketing industry with a market cap of $16.64B and dividend yield at 2.57%. Share prices have fallen 28.47% over the past month. It is engaged in oil exploration and production and oil sands mining. Once an integrated oil company, it spun off its refining and marketing operations earlier this year to focus on its exploration and production business.
7. Whirlpool Corp. (WHR): Electronics Stores industry with a market cap of $4.50B and dividend yield at 3.40%. Share prices have fallen 27.41% over the past month. It manufactures and markets a range of appliances and related products for home use. Its principal products are laundry appliances, refrigerators, cooking appliances, dishwashers, mixers and other small household appliances. It also produces hermetic compressors for refrigeration systems.
8. Briggs & Stratton Corp. (BGG): Diversified Machinery industry with a market cap of $750.90M and dividend yield at 2.96%. Share prices have fallen 25.55% over the past month. It is a producer of air cooled gasoline engines for outdoor power equipment. It designs, manufactures, markets and services these products for original equipment manufacturers (OEMs) worldwide. These engines are aluminium alloy gasoline engines with displacements ranging from 141 to 993 cubic centimeters. Additionally, through its wholly owned subsidiary, Briggs & Stratton Power Products Group, LLC, Briggs & Stratton is a designer, manufacturer and marketer of generators (portable and standby), pressure washers, snow throwers, lawn and garden powered equipment (primarily riding and walk behind mowers and tillers) and related service parts and accessories.
9. Waste Management, Inc. (WM): Waste Management industry with a market cap of $13.30B and dividend yield at 4.83%. Share prices have fallen 25.36% over the past month. It provides collection, transfer, recycling and disposal services. It is also a developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States.The services it provides include collection, landfill (solid and hazardous waste landfills), transfer, waste-to-energy facilities and independent power production plants, recycling and other services.
10. Freeport-McMoRan Copper & Gold Inc. (FCX): Copper industry with a market cap of $39.68B and dividend yield at 2.39%. Share prices have fallen 23.66% over the past month. It is a copper, gold and molybdenum mining company. Its portfolio of assets includes the Grasberg minerals district in Indonesia, mining operations in North and South America, and the Tenke Fungurume (Tenke) minerals district in the Democratic Republic of Congo (DRC). The Grasberg minerals district contains a single recoverable copper reserve and a single gold reserve of any mine in the world. It also operates Atlantic Copper, its wholly owned copper smelting and refining unit in Spain. FCX operates seven copper mines in North America and four copper mines in South America. In Indonesia, PT Freeport Indonesia operates the mines in the Grasberg minerals district. In Africa, Tenke Fungurume S.A.R.L. (TFM) operates the Tenke Fungurume (Tenke) mine.
Interactive Chart: Press Play to see how analyst ratings have changed for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.