Best of the Week
Most Popular
1.Crude Oil Price Trend Forecast 2016 Update - Nadeem_Walayat
2.Will Deutsche Bank Crash The Global Stock Market? - Clif_Droke
3.Gold Price In Excess Of $8000 While US Dollar Collapses - Hubert_Moolman
4.BrExit UK Economic Collapse Evaporates, GDP Forecasts for 2016 and 2017 - Nadeem_Walayat
5.Gold Stocks Massive Price Correction - Zeal_LLC
6.Stock Market Predicts Donald Trump Victory - Austin_Galt
7.Next Financial Crisis Will be Far Worse than 2008/09 - Chris_Vermeulen
8.The Gold To Housing Ratio As A Valuation Indicator - Dan_Amerman
9.GDXJ Gold Stocks - A Diamond in the Rough - Rambus_Chartology
10.Gold Boom! End Game Nears As Central Banks Buying Up Gold Mining Companies! - Jeff_Berwick
Last 7 days
BEA Revises Q2 2016 US GDP Growth Upward to 1.42% - 29th Sept 16
Could the OPEC deal set stage for the Next Stock Market Risk Rally? - 29th Sept 16
Why Trump Lost, Hillary Won the 1st U.S. Presidential Debate - 29th Sept 16
Is a Dollar Crash Imminent After the Senate Overrides Obama Veto on Saudi 9/11 Bill? - 29th Sept 16
2017: Gold and Silver's Year of "Public Recognition" - 29th Sept 16
Did Trump Win the 1st US Presidential Election Debate? - There's Something Happening Here... - 29th Sept 16
FED Goes from ZIRP to NIRP! - 29th Sept 16 - Chris_Vermeulen
Here’s Why You Should Be in Cash Right Now - 28th Sept 16
The Fed Put a 50% Tax on Your Retirement Plan - 28th Sept 16
Massive Chinese Debt And Why They Are On A Gold Buying Binge! - 28th Sept 16
Stocks Commodities and FX Markets Waiting Technically While Fundamental Data Neutral Poised - 28th Sept 16
This Commodity Has Perked Up its Investors' Portfolios - 27th Sept 16
Charting the Continuing Gold Market Correction - 27th Sept 16
Stock Market Crash and Recession Indicator Warning: Extreme Danger Ahead - 27th Sept 16
Financial Markets and FX Setups 27th Sept - 27th Sept 16
Crude Oil, Forex and Stock Market Trend Forecasts - 27th Sept 16
Why There is Trump - 27th Sept 16
Save Up to 70% in Shopping Expenses for Daily Items - 27th Sept 16
Gold’s Moving Averages and Long-Term Outlook - 26th Sept 16
September Stock Market - The Not So Silent Demise of Deutsche Bank - 26th Sept 16
SPX sell signal confirmed - 26th Sept 16
SPX is testing the next level of support - 26th Sept 16
Outrageously Entertaining US Presidential Campaign Final Stages - What Happens Next? - 26th Sept 16
BoJ, FOMC and Where To Now? - 26th Sept 16
Stock Market New All Time Highs Next - 26th Sept 16
Why Trump Will Win US General Election 2016 Prediction Forecast - 26th Sept 16
Martial Law Rolls Out Across the US As Jubilee Nears - 26th Sept 16
Stock Market More Correction Likely - 25th Sept 16
US Presidential Election Forecast 2016 - Trump Riding BrExit Wave into the White House - 25th Sept 16
US Economy GDP Growth Estimates in Free-Fall: FRBNY Nowcast 2.26% Q3, 1.22% Q4 - 24th Sept 16
Gold and Gold Stocks Corrective Action Continues Despite Dovish Federal Reserve - 24th Sept 16
Global Bonds: Why Our Analyst Says Things Just Got "Monumental" - 24th Sept 16
Where Did All the Money Go? - 23rd Sept 16
Pension Shortfalls Could Be 4X To 7X Greater Than Reported - 23rd Sept 16
Gold Unleashed by the Fed - 23rd Sept 16
Gold around U.S Presidential Elections - 23rd Sept 16
Here’s Why Eastern Europe Is Doomed - 23rd Sept 16
Nasdaq NDX 100 Big Cap Tech Breakout ? - 23rd Sept 16
The Implications of the Italian Banking Crisis Could Be Disastrous - 22nd Sept 16
TwinLakes Theme Park Summer Super 6 FREE Return Entry for Real? - 21st Sept 16
Has the Silver Bullet Run Out of Fire Power? - 21st Sept 16
Frack Sand: The Unsung Hero Of The OPEC Oil War - 21st Sept 16
What’s Happening With Gold? - 21st Sept 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Power of the Wave Principle

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

© 2005-2016 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

Catching a Falling Financial Knife