Best of the Week
Most Popular
1.Will UK Interest Rate Rises Crash House Prices? - Nadeem_Walayat
2.Full on Crash Alert for Major World Stock Markets... - Clive_Maund
3.Gold And Silver Market Bottoming? Big Rally Imminent? Reality Check Says NO - Michael_Noonan
4.The Coming Silver Price Rally Will Outperform All Previous Ones - Hubert_Moolman
5.The Trigger For The Upcoming Stock Crash - Harry_Dent
6.Imploding Department Store Results - James_Quinn
7.Dr. Copper is Speaking, are you Listening? ... - Rambus_Chartology
8.Pandemonium in the Stock Market, Dow falls 1,000 points in a week - EWI
9.Asia's Whirling Dervish of Devaluations Has Encircled China's Exports - Keith_Hilden
10.China Weakens the Yuan; Rattles Global Stock and Financial Markets - Gary_Dorsch
Last 5 days
How I Learned to Stop Worrying and Love Market Fluctuations - 28th Aug 15
China's Yuan Devaluation: Why It Was "Expected" - 28th Aug 15
Stocks Go Nuts But the Question Remains – Will the Rally Stick? - 28th Aug 15
Fed’s Stock Market Levitation is Failing - 28th Aug 15
The Eight Energy Systems Driving The Stock Market Rout - 28th Aug 15
Silver Sold, then Squeezed - 28th Aug 15
U.S. Economic Fundamentals 'Look Good' - Bullard of St. Louis Fed - 28th Aug 15
Stock Market Margin Calls Mount - 28th Aug 15
Einstein, Physics, Gold and The Formula To End Economic Decay - 28th Aug 15
The 10 Best Stocks for Options Trading Plays in This Market - 28th Aug 15
Economics of a Stock Market Crash - 28th Aug 15
Currency Wars Detonate; Gold Refuses to Budge - 28th Aug 15
UK Immigration Crisis Hits New Record, Trending Towards Becoming a Catastrophe - 28th Aug 15
The Ultimate Cash-Management Guide - 27th Aug 15
Why a Fed Rate Hike Could Be a Blessing for Gold Prices - 27th Aug 15
Why Devaluing the Yuan Won't Help China's Economy - 27th Aug 15
Stock Market Trend & Trade Signal Of the Decade - 27th Aug 15
Keep Your Eye On the Gold and Silver Bear - 27th Aug 15
Refugees Expose Europe’s Lack Of Decency - 27th Aug 15
How to Profit from China's Currency War - 27th Aug 15
How China's Currency Policies Will Change the World - 27th Aug 15
Chinese Medicine not Impressing Dr Copper - 27th Aug 15
Novel Biotech Novel Technology Platforms with Dramatic Growth Potential - 27th Aug 15
China Stocks Bear Market Crash, Are We Near the Bottom Yet? - 27th Aug 15
Stock Market Crash Black Wednesday Rally Crushes the Bears - 26th Aug 15
VIX Shorts Being Squeezed While SPX Prepares for Another Decline - 26th Aug 15
Why China's Economy is Deteriorating - 26th Aug 15
Citizenship as a Weapon: Travel Controls and What You Can Do About It - 26th Aug 15
Gold and Silver - How To Manipulate a Market - 26th Aug 15
How to Make a Quick 20% When the Stock Market Crashes - 26th Aug 15
Why We Can’t Handle A Stocks Bear Market - State Budgets Will Implode - 26th Aug 15
Stocks Bear Market, Is This 1929 All Over Again? - 26th Aug 15
The One Trading Strategy You Needed for Stock Market Crash - 26th Aug 15
Second Chance To Buy Cheap Gold Mining Stocks - 25th Aug 15
Gold Facts and Gold Speculations - 25th Aug 15
The Stock Market Crash Season is Here… - 25th Aug 15
Liftoff Setback Leads to U.S. Dollar Pullback - 25th Aug 15
The Stock Markets Are Extraordinarily Volatile, Here's What to Do - 25th Aug 15
Israel: The Case Against Attacking Iran - 25th Aug 15
Saudis Could Face An Open Revolt At Next OPEC Oil Meeting - 25th Aug 15
How to Calmly Weather This Stock Market Downturn - 25th Aug 15
Stock Market Sound the Alarm - 25th Aug 15
Stock Market Meltdown - Dow Monday 1000 Point Crash then Rebound, What's Next? - 25th Aug 15
El-Erian: Stock Market Sell off Is Not 1998 or 2008 - 25th Aug 15
Gold the Ultimate Financial Crisis Insurance - 25th Aug 15
Stock Market Black Monday Crash Fizzles Out, Next Black Tuesday? - 25th Aug 15
Black Monday - Rolling A Wheelbarrow Of Dynamite Into A Crowd Of Fire Jugglers - 24th Aug 15
Playing the Chinese Trump Card - 24th Aug 15
Gold and Silver: Heading for a “Blue Screen of Death” Event? - 24th Aug 15
Japan Economy Clear Conclusions Concerning QE - 24th Aug 15
Stock Market Blockbuster Right From the Open... - 24th Aug 15
Silver And The Petrodollar - 24th Aug 15
Why the Stock Market Sell-Off Happened – and How to Make Money on It - 24th Aug 15
Stocks Correct, Panic Ensues. The End Of The World? - 24th Aug 15
Stock Market - The Sky IS Falling - 24th Aug 15
SP500, DAX, FTSE - When Stock Markets Talk, Pay Attention - 24th Aug 15
Stock Market Black Monday - Full Crash Alert! - 24th Aug 15
Stock Markets Implode as China Literally Explodes - 23rd Aug 15
Stock Market Bloodbath - The Feds Gonna Need A Bigger Balance Sheet - 23rd Aug 15
Stock Market Due For A Breather (But More To Go) - 23rd Aug 15
Stock Market 20% Bear Market in the Works - 23rd Aug 15
Ankara: the New Capital of Jihad, U.S. Policy for Strengthening ISIS - 23rd Aug 15
Will Rising Interest Rates Crash UK House Prices? - Video - 23rd Aug 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Global Stocks Slide

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

© 2005-2015 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

Biggest Debt Bomb in History