Best of the Week
Most Popular
1.The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - Doug_Wakefieldth
2.Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - Nadeem_Walayat
3.The Trend Every Nation on Earth Is Pouring Money Into - Keith Fitz-Gerald
4.Do Tumbling Buybacks Signal Another Stock Market Crash? - 26Mike_Whitney
5.Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - Nadeem_Walayat
6.Gold And Silver Price - Respect The Trend But Prepare For A Reversal - Michael_Noonan
7.U.S. Economy Faltering Momentum, Debt and Asset Bubbles - Lacy Hunt
8.Bullish Silver Stealth Buying - Zeal_LLC
9.Euro, USD, Gold and Stocks According to Chartology - Rambus_Chartology
10.Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - EWI
Last 5 days
Stocks Bear Market Crash Towards New All Time Highs as QE3 End Awaits QE4 Start - 31st Oct 14
US Mortgages, Risky Bisiness "Easy Money" - 30th Oct 14
Gold, Silver and Currency Wars - 30th Oct 14
How to Recognize a Stock Market “Bear Raid” on Wall Street - 30th Oct 14
U.S. Midterm Elections: Would a Republican Win Be Bullish for the Stock Market? - 30th Oct 14
Stock Market S&P Index MAP Wave Analysis Forecast - 30th Oct 14
Gold Price Declines Once Again As Expected - 30th Oct 14
Depression and the Economy of a Country - 30th Oct 14
Fed Ends QE? Greenspan Says Gold “Measurably” “Higher” In 5 Years - 30th Oct 14
Apocalypse Now Or Nirvana Next Week? - 30th Oct 14
Understanding Gold's Massive Impact on Fed Maneuvering - 30th Oct 14
Europe: Building a Banking Union - 30th Oct 14
The Colder War: How the Global Energy Trade Slipped From America's Grasp - 30th Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VIII) - 29th Oct 14
Flock of Black Swans Points to Imminent Stock Market Crash - 29th Oct 14
Bank of America's Mortgage Headaches - 29th Oct 14
Risk Management - Why I Run “Ultimate Trailing Stops” on All My Investments - 29th Oct 14
As the Eurozone Economy Stalls, China Cuts the Red Tape - 29th Oct 14
Stock Market Bubble Goes Pop - 29th Oct 14
Gold's Obituary - 29th Oct 14
A Medical Breakthrough Creating Stock Profits - 29th Oct 14
Greenspan: Gold Price Will Rise - 29th Oct 14
The Most Important Stock Market Chart on the Planet - 29th Oct 14
Mysterious Death od CEO Who Went Against the Petrodollar - 29th Oct 14
Hillary Clinton Could Be One of the Best U.S. Presidents Ever - 29th Oct 14
The Worst Advice Wall Street Ever Gave - 29th Oct 14
Bitcoin Price Narrow Range, Might Not Be for Long - 29th Oct 14
UKIP South Yorkshire PCC Election Win is Just Not Going to Happen - 29th Oct 14
Evidence of New U.S. Housing Market Real Estate Bust Starting to Appear - 28th Oct 14
Principle, Rigor and Execution Matter in U.S. Foreign Policy - 28th Oct 14
This Little Piggy Bent The Market - 28th Oct 14
Global Housing Markets - Don’t Buy A Home, You’ll Get Burned! - 28th Oct 14
U.S. Economic Snapshot - Strong Dollar Eating into corporate Profits - 28th Oct 14
Oliver Gross Says Peak Gold Is Here to Stay - 28th Oct 14
The Hedge Fund Rich List Infographic - 28th Oct 14
Does Gold Price Always Respond to Real Interest Rates? - 28th Oct 14
When Will Central Bank Morons Ever Learn? asks Albert Edwards at Societe General - 28th Oct 14
Functional Economics - Getting Your House in Order - 28th Oct 14
Humanity Accelerating to What Exactly? - 27th Oct 14
A Scary Story for Emerging Markets - 27th Oct 14
Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - 27th Oct 14
Europe Redefines Bank Stress Tests - 27th Oct 14
Stock Market Intermediate Correction Underway - 27th Oct 14
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans - 26th Oct 14
Obamacare Is Not a Revolution, It Is Mere Evolution - 26th Oct 14
Do Tumbling Buybacks Signal Another Stock Market Crash? - 26th Oct 14
Has the FTSE Stock Market Index Put in a Major Top? - 26th Oct 14
Christmas In October – Desperate Measures - 26th Oct 14
Stock Market Primary IV Continues - 26th Oct 14
Gold And Silver Price - Respect The Trend But Prepare For A Reversal - 25th Oct 14
Ebola Has Nothing To Do With The Stock Market - 25th Oct 14
The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - 25th Oct 14
Japanese Style Deflation Coming? Where? Fed Falling Behind the Curve? Which Way? - 25th Oct 14
Gold Price Rebounds but Gold Miners Struggle - 25th Oct 14
Stock Market Buy the Dip or Sell the Rally - 25th Oct 14
Get Ready for “Stupid Cheap” Stock Prices - 25th Oct 14
The Trend Every Nation on Earth Is Pouring Money Into - 25th Oct 14 - Keith Fitz-Gerald
Bitcoin Price Decline Stopped, Possibly Temporarily - 25th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

The Best and Worst Stocks of 2012

Companies / Investing 2012 Jan 02, 2013 - 07:35 AM GMT

By: Money_Morning

Companies

Ben Gersten writes: As we prepare to invest in the New Year, we can learn from the five best and worst performing stocks of 2012 in the Standard & Poor's 500 Index.

While any investor would have loved to know this list a year ago, it's a good guide for 2013. Several of the factors that drove these share prices up and down in 2012 haven't changed.


The best stocks were led by signs of a recovery in housing, a slight return of consumer confidence, and the U.S. Federal Reserve's unprecedented monetary easing measures.

"The sector leaders are what one would expect with the [Fed] policy and with continued monetary injections into the economy this year through bond purchases," Peter Jankovskis, co-chief investment officer at Oakbrook Investments LLC, told The Wall Street Journal. "By pumping money into the economy the Fed boosts consumer confidence-and spending-which one would expect to boost consumer and financial shares."

While the leaders' success was tied to central bank actions, the biggest losers simply stumbled from their lack of innovation, inept management, and failed business models.

Best Stocks of 2012
Here are the best performing stocks in the S&P 500 for 2012:

•PulteGroup Inc. (NYSE: PHM)- This Bloomfield Hills, MI-based homebuilder may not be a household name but its performance was driven by the stabilization of the housing industry, six years after it burst. Housing prices and starts improved all year while foreclosure inventories dwindled, allowing Pulte's earnings per share to grow over 80% this year. Analysts expect EPS growth of 67% in 2013. Up 182% YTD.
•Sprint Nextel Corp. (NYSE: S)- Almost left for dead, the Overland Park, KS-based Sprint saw its stock nearly fall to $2 at one point this year, but speculation over a possible buyout pressured the stock higher. In October Japanese telecom power, SoftBank, initiated a 70% stake in Sprint, confirming those rumors. Sprint has somewhat turned itself around this year by reducing its debt and introducing more smartphone options to their collection in stores and on plans. Yet, the third-largest telecom provider is still quite volatile, and the risks associated with its stock outweigh any remaining upside potential. Up 139% YTD.
•Whirlpool Corp. (NYSE: WHR)- Another beneficiary of the housing recovery, this time on the appliance side. Besides producing products bearing the Whirlpool name, the Benton Harbor-MI based company makes Maytag, KitchenAid, Jenn-Air, and Amana appliances, as well as products with IKEA, Sears Holding Corp. (Nasdaq: SHLD) and The Home Depot Inc. (NYSE: HD) brands. In its October third-quarter earnings release, the company increased its final outlook for 2012, expecting full-year diluted EPS of $6.90 to $7.10, compared to the previous estimate of $6.50 to $7.00, and higher than 2011's full-year diluted EPS of $4.99. Up 112% YTD.
•Expedia Inc. (Nasdaq: EXPE)- The Bellevue, WA-based provider of travel tools went back to its roots this year when it spun off TripAdvisor and its travel-related media sites. Besides its namesake site, Expedia owns Hotels.com, Hotwire.com, and China based travel Website, eLong. The exposure to China should help it continue to grow, but as a travel company Expedia is heavily dependent on the swings of the economy. Up 108% YTD.
•Bank of America Corp. (NYSE: BAC)- After the atrocious year Bank of America had in 2011 it was due for a bounce back, and the Federal Reserve certainly provided more than enough help for that through its expansive monetary actions.

As a sector, financials outperformed the market in 2012 and many expect that trend to continue into 2013. An improving housing market will help to bolster banks' balance sheets, as well as a lending environment that increasingly favors big banks. Up 105% YTD.

Worst Stocks of 2012
Here's a list of the worst performing stocks of the year, and they all should still be avoided.

•Radio Shack Corp. (NYSE: RSH)- Fort Worth, TX-based Radio Shack had an awful year, and it looks likes things are only going to get worse. The fact is people are simply not shopping at Radio Shack, which offers smartphones from the major carriers as well as having convenient locations throughout the country. Yet, competition from other retailers and an overall lack of appeal to consumers caused a third-quarter per share loss that was more than double what analysts expected, and now the consensus is Radio Shack won't return to profitability until 2014 at the earliest, if ever. Radio Shack's days of a tech leader are well gone, and it appears the company isn't the best follower either. Down 78% YTD.
•SUPERVALU Inc. (NYSE: SVU)- Even before the Eden Prairie, MN-based grocery store chain owner effectively put itself up for sale in July, there were plenty of things going wrong for the company. Saddled with debt the company was forced to suspend its quarterly dividend and had to lay off over 3,000 workers this past year, with plans for more cuts. The hope that Supervalu or some of its chains will actually be bought occasionally boosts the stock, but overall it should be avoided. Down 71% YTD.
•Apollo Group Inc. (Nasdaq: APOL) - The for-profit education provider was hit hard by the growing student-debt crisis this past year. The University of Phoenix operator reported its fourth-quarter profit for 2012 fell 60% from the previous year, led by declining enrollments and higher costs. The Apollo group said it will have to close 115 of its smaller locations in the upcoming years. Down 62% YTD.
•Advanced Micro Devices Inc. (NYSE: AMD)- The collapse of PCs took a mighty toll on global semiconductor companies such as AMD and fellow fallen tech giant Hewlett Packard Co. (NYSE: HPQ) that make chips primarily for PCs. The growth of tablets that use semiconductors made by other companies caused the company to announce a 15% layoff in staff and a much worse third-quarter loss than expected. Down 57% YTD.
•Best Buy Co. Inc. (NYSE: BBY)- The mighty retailer is struggling to keep up with the evolving landscape of tech retail and has had to cope with internal issues all year. Former founder, Richard Schulze, has repeatedly attempted to buyout the company and return it to a privately held firm. The company's unclear future, as well as repeated earnings and revenue misses, has caused BBY stock to be cut in half this year. After reporting third-quarter profits that were 97% lower than a year ago and cutting its full-year guidance, don't expect this retailer to become a "buy" anytime soon. Down 51% YTD.

Heading into the New Year with so much uncertainty can make investors nervous. If you want to avoid stocks that will suffer in 2013 and find some of the biggest winners, check out Private Briefing.

Through its daily service you will receive stock picks as well as financial analysis catered to today's zero-interest rate environment. For more information - and to avoid the next year's crop of worst stocks - click here.

Source :http://moneymorning.com/2012/12/31/the-best-and-worst-stocks-of-2012/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014