Left-Out Stocks
Over 9 years ago, the stock market experienced a drastic financial crisis that sent it to the market bottom. Since that period, the S&P 500 has gone on to record more than triple its value before the crisis. However, some individual stocks have still not recovered from that crisis as they remained negative.
The stocks include the stocks of companies such as:
1. Apache Corporation: This American company is dedicated to the production and exploration of natural gas and petroleum has its headquarters in Houston. The company has a spot on the Fortune 500. As of the morning trading session today, it was at $43.05 per share.
2. Freeport-McMoRan Inc: Freeport is a foremost mining company that has its headquarters in Phoenix. It deals in copper, molybdenum and gold. As of this morning’s trading session, it was at $14.28 per share.
3. FirstEnergy Corporation: It is an electric utility company that has its headquarters in Ohio. Its affiliates and subsidiaries carry out generation, distribution and transmission of electricity, energy management and some other services. As of the morning trading session today, it was at $36.78 per share.
4. Mosaic Company: This is a Fortune 500 company that is based in Minnesota. The company mines potash and phosphate and is deemed the largest producer of phosphate and potash fertilizer in the US. It was at $29.43 per share as of the morning trading session.
FCX’s Comeback
Recently, some market watchers have projected that one of these four stocks appears to be preparing to stage a market comeback.
BK Asset Management’s MD of FX strategy, Boris Schlossberg, reportedly stated that he likes the miners and FCX. Schlossberg added that it is a good way which isn’t time sensitive to stay out of the commodity crash and also receive carried interest. While holding the FCX, according to him, one gets paid dividends.
As of Wednesday trading session, the dividend of Freeport yielded 1.4%. The payout ratio which is a measurement of dividends as earnings percentage was at 5.1%. Schlossberg also noted that Freeport’s latest sell-offs have gone ahead of its control as it has more connections to macro headwinds and geopolitics.
Schlossberg added that FCX has strong ties with copper prices which have been adversely affected by the trade disputes between the US and China and not particularly because there is a reduction in demand. Schlossberg opined that if copper gets a comeback, the same will be the case for FCX.
Reports have it that the prices of copper have plunged close to 19% in 2018. The plunge in price has pushed it to a correction and edged it close to bear market. Sources indicate that prices have become sold off since the Trump administration intensified its tariff war with China which has evidently reduced the demand for the commodity.
Also, another market analyst, Michael Bapis has projected a Freeport comeback. The MD of Bapis Group noted that he also likes FCX and added that the stock is trading at a seven times earnings. Bapis added that there would likely be a whole lot of growth and exploration growth in the emerging markets both domestically and internationally as soon as the tariff and trade wars are over.
Freeport has reportedly sold off in 2018 as there is no definite end in sight to the trade war between the US and China. For this year, Freeport’s shares have plunged by 23% pushing it on the track for the first yearly loss since the year 2015.
S&P 500
Standard & Poor’s, formerly known as the Standard Statistics Company, established its first index as far back as 1923. The S&P 500 is an index often regarded as the U.S. stock market. It is one of the foremost market benchmarks, even though, there are some other markets such as Wilshire and Russell indexes with wider measures.
In 2008, S&P 500 had its worst annual percentage loss as it fell to 38.49%. The index closed at 676.53 on March 9, 2009 after the 2008 financial crisis and the bankruptcy of Lehman Brothers. It has, however, gone to triple its value and that feat didn’t come easy. The index has reportedly faced several panic attacks after it hit the market bottom in 2009. For instance, the European debt crisis, the US loss of its triple-A credit rating among other things caused drops for the index.
However, even with the drops from time to time, a lot of investors have still continued to use the index as the primary index to measure the performance of their portfolio.