If there's a bright side to President Donald Trump's tariffs, proponents say, it's that many S&P 500 stocks are now on sale.
Eleven stocks in the S&P 500, including Dell Technologies, Western Digital and APA, plunged 22% or more in just two days on Friday following Trump's onerous tariff announcements, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. If you wanted to buy any of these stocks, they're certainly cheaper now than they were.
"The Trump administration may be playing a game of chicken with trading partners, but market participants aren't willing to wait around for the results. Instead, investors are selling first and asking questions later," said Michael Arone, chief investment strategist of the US SPDR business of State Street Global Advisors.
S&P 500 Technology Stocks Get Pounded
Six of the 12 hardest hit stocks in the S&P 500 are in the tech sector. And that's starting to sting.
The Technology Select Sector SPDR Fund is now down 21% this year. That makes it the no. 2 worst S&P 500 sector following Energy Select Sector SPDR Fund. And big implosions like the one at Dell are part of the reason.
Shares of the computing firm fell 25% in just two days, as Dell is a major importer and exporter. The RS Rating sank to just 18 despite solid profit growth. The company's EPS Rating is 83. Analysts think profit will rise 16% this year.
Hard drive maker Western Digital also plummeted. Shares tanked 27% on the news. The stock's RS Rating has dropped to 21, again, despite reporting solid profit in past quarters. The company's EPS Rating is 80. Profit is seen rising 2,352% this year.
Not Just S&P 500 Tech Gets Pounded
Energy plays like APA are also feeling the heat. Shares of the oil company are off 27% on the tariff news. Makes sense, demand for power and oil may ease with a disruption in the global economy.
APA's RS Rating has plunged to 14, too. And it doesn't have earnings growth to support it. Analysts think the company's profit will slide 14% in 2025.
The fact is these stocks are on sale as the new tariffs will make them less profitable. And weakness isn't usually a good reason to buy a stock.
Worst S&P 500 Stocks Since April 2
| Company | Ticker | Ch. From 4/2 |
|---|---|---|
| APA | APA | -27.2% |
| Western Digital | WDC | -26.8% |
| Micron Technology | MU | -26.3% |
| Dell Technologies | DELL | -24.7% |
| Vistra | VST | -24.2% |
| Freeport-McMoRan | FCX | -23.2% |
| Seagate Technology | STX | -22.8% |
| KKR | KKR | -22.7% |
| Warner Bros. Discovery | WBD | -22.6% |
| Microchip Technology | MCHP | -22.6% |
| Hewlett Packard Enterprise | HPE | -22.5% |
| Estée Lauder | EL | -22.4% |
