If you own S&P 500 stocks not working in a raging bull like this year, you should be suspicious. And now the analysts are warning you to cut bait, too.
Five S&P 500 stocks down this year so far, including Expeditors International of Washington, Robert Half and Illinois Tool Works, are expected by analysts to fall even more in the next 12 months, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
This is an important warning as the sudden 1% drop in the S&P 500 on Tuesday shows there's risk in the market following its surge this year.
Meanwhile, holding the wrong stocks is even costlier in a bull market. The S&P 500 is already up 6% this year, lifted by a powerful rally in growth stocks. Seeing analysts with lower price targets following a drop in the stock already is highly unusual.
Losing Stocks Rare In The S&P 500
If you're losing money on S&P 500 stocks this year, that's not typical. More than 60% of the stocks in the index are up this year.
And some of the gains are stellar. Nearly 25 S&P 500 stocks, like Nvidia, are up more than 20% this year.
That makes it all the more painful to hold a money-losing stock. Shares of transportation company Expeditors International of Washington are down more than 10% this year to 119.13. You might think a dip like that might make future gains more obtainable. But rather than calling for a rally, analysts think the company's stock will fall nearly 11% to 106.60 in 12 months, instead.
Much of the issue is due to a downward trajectory in the company's earnings. Expeditors' profit per share is seen falling nearly 5% in 2024 after dropping nearly 40% in 2023.
More S&P 500 Warnings
Analysts are also sounding a warning for recruitment firm Robert Half. Analysts think shares will fall another nearly 8% in 12 months to 72.55 apiece. No matter that the stock is already down nearly 11% this year. Again, shrinking profit is to blame. Analysts think Robert Half's profit will sag nearly 14% in 2024 after falling 36% in 2023.
Not all the expected stock declines are that large. Analysts only think Snap-on will fall 2.2% in 12 months. But that's disappointing when the stock is already off 2.2% this year and hopes are high for the S&P 500.
Why suffer when you don't have to?
Falling Stocks To Fall More?
Analysts think these stocks are likely to decline more in 12 months
| Company | Ticker | YTD % fall | Downside in 12 months |
|---|---|---|---|
| Expeditors International of Washington | -6.3% | -10.5% | |
| Robert Half | -10.7% | -7.6% | |
| Illinois Tool Works | -1.5% | -4.7% | |
| FactSet Research Systems | -2.7% | -2.6% | |
| Snap-on | -2.0% | -2.2% |
