May has been a reversal for what has otherwise been a good 2019 for U.S. stocks. It may be an opportunity to consider which stocks may have fallen too much, in your view, and may now present buying opportunities.
Here’s how major indexes have performed this month and for 2019:
| Price changes | |||
| Index | April 30 through May 24 | 2019 | Fourth quarter, 2018 |
| Dow Jones Industrial Average DJIA, -0.87% | -3.8% | 9.7% | -11.8% |
| S&P 500 index SPX, -0.69% | -4.2% | 12.7% | -14.0% |
| Nasdaq Composite Index COMP, -0.79% | -6.0% | 15.1% | -17.5% |
| Source: FactSet | |||
Biggest large-cap ‘losers’
These 14 stocks among the S&P 500 are down at least 50% from their 52-week highs:
| Company | Ticker | Industry | Closing price - May 24 | 52-week high | Date of 52-week high | Decline from 52-week high |
| Nektar Therapeutics | NKTR, +1.31% | Biotechnology | $33.79 | $92.17 | 06/01/2018 | -63.3% |
| CenturyLink Inc. | CTL, +2.57% | Telecommunications | $10.11 | $24.20 | 08/21/2018 | -58.2% |
| Halliburton Co. | HAL, +0.09% | Oilfield Services/Equipment | $22.97 | $52.61 | 05/24/2018 | -56.3% |
| Mylan N.V. | MYL, +0.56% | Generic Pharmaceuticals | $18.98 | $42.50 | 06/13/2018 | -55.3% |
| National Oilwell Varco Inc. | NOV, -1.10% | Oilfield Services/Equipment | $22.39 | $49.08 | 07/31/2018 | -54.4% |
| Western Digital Corp. | WDC, +0.20% | Computer Peripherals | $40.98 | $88.62 | 05/24/2018 | -53.8% |
| Kraft Heinz Co. | KHC, +0.00% | Food: Major Diversified | $31.11 | $64.99 | 08/03/2018 | -52.1% |
| Fluor Corp. | FLR, +0.81% | Engineering & Construction | $29.04 | $60.60 | 10/02/2018 | -52.1% |
| HollyFrontier Corp. | HFC, +0.24% | Oil Refining/Marketing | $41.11 | $83.28 | 06/04/2018 | -50.6% |
| Nordstrom Inc. | JWN, -1.70% | Apparel/Footwear Retail | $33.50 | $67.75 | 11/06/2018 | -50.5% |
| Nvidia Corp. | NVDA, -2.09% | Semiconductors | $145.15 | $292.76 | 10/02/2018 | -50.4% |
| Activision Blizzard Inc. | ATVI, +1.13% | Recreational Products | $42.29 | $84.68 | 10/01/2018 | -50.1% |
| Macy's Inc | M, -0.48% | Department Stores | $21.01 | $41.99 | 08/14/2018 | -50.0% |
| IPG Photonics Corp. | IPGP, -0.11% | Electronic Equipment/Instruments | $131.01 | $261.77 | 06/07/2018 | -50.0% |
| Source: FactSet | ||||||
It is a diverse list, and you can click the tickers for news coverage and more information about each company.
Here’s a summary of analysts’ opinions about these companies. A majority of analysts have buy recommendation on six of them:
| Company | Ticker | Share 'buy' ratings | Share neutral ratings | Share 'sell' ratings | Closing price - May 24 | Consensus price target | Implied 12-month upside potential |
| Nektar Therapeutics | NKTR, +1.31% | 71% | 29% | 0% | $33.79 | $69.50 | 106% |
| CenturyLink Inc. | CTL, +2.57% | 18% | 70% | 12% | $10.11 | $12.80 | 27% |
| Halliburton Co. | HAL, +0.09% | 88% | 12% | 0% | $22.97 | $38.18 | 66% |
| Mylan N.V. | MYL, +0.56% | 68% | 32% | 0% | $18.98 | $29.63 | 56% |
| National Oilwell Varco Inc. | NOV, -1.10% | 35% | 52% | 13% | $22.39 | $29.36 | 31% |
| Western Digital Corp. | WDC, +0.20% | 42% | 48% | 10% | $40.98 | $53.91 | 32% |
| Kraft Heinz Co. | KHC, +0.00% | 10% | 75% | 15% | $31.11 | $35.67 | 15% |
| Fluor Corp. | FLR, +0.81% | 36% | 64% | 0% | $29.04 | $34.33 | 18% |
| HollyFrontier Corp. | HFC, +0.24% | 22% | 61% | 17% | $41.11 | $55.13 | 34% |
| Nordstrom Inc. | JWN, -1.70% | 17% | 70% | 13% | $33.50 | $38.59 | 15% |
| Nvidia Corp. | NVDA, -2.09% | 58% | 36% | 6% | $145.15 | $183.30 | 26% |
| Activision Blizzard Inc. | ATVI, +1.13% | 66% | 34% | 0% | $42.29 | $52.71 | 25% |
| Macy's Inc | M, -0.48% | 18% | 59% | 23% | $21.01 | $23.93 | 14% |
| IPG Photonics Corp. | IPGP, -0.11% | 53% | 47% | 0% | $131.01 | $190.83 | 46% |
| Source: FactSet | |||||||
Each company has a different story, of course, which you must understand as part of your own research if you wish to do some “bottom feeding.”
For example, you might have a particular opinion about the (potential) resolution of the trade conflict between the U.S. and China, and its timing. Michael Brush, for one, believes it’s time to invest in semiconductor stocks and other select industries in anticipation of a trade agreement.
Also read: Nvidia stock falls after earnings fail to change any minds
You can get broad exposure to semiconductors, while cutting the risk associated with an individual stock, through broad exchange-traded funds that include the iShares PHLX Semiconductor ETF SOXX, +0.36% and the SPDR S&P Semiconductor ETF XSD, +0.97% Over short periods, or even within the space of a year, these aren’t for the faint of heart, as you can see with Nvidia NVDA, -2.09% down 50% from a 52-week high it set in October.
But look at the five-year total-return chart for the two ETFs named above:
A high level of volatility is typical for semiconductor stocks, but the long-term path has been lucrative.
Don’t miss: 20 retail stocks that have two key metrics going for them in the battle against Amazon
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