Analysts and investors are noting that 2017 has generally been a good year for the market. As always, however, not every stock benefits when the market is up. Some observers are looking at some of this year’s losers for their potential in 2018.
While nobody has a perfect crystal ball – especially when it comes to securities, the reasoning behind some optimistic views bears careful consideration.
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TSC Might Be Amazon-Resistant
Tractor Supply Company (NASDAQ:TSCOC) has dropped more than 30% in 2017 and more than 45% since the middle of 2016. On the other hand, this rural-based retailer has some protection from mighty Amazon.com Inc. (NASDAQ:AMZNC), the so-called retail slayer.
TSC has an established niche and, observers say, consumable, usable and edible (CUE) inventory that enhances the chain’s ability to compete with online retailers.
Intel May Recover
Another stock that is down to date – Intel Corp. (NASDAQ:INTCA) – has lost ground to smaller players. Nvidia Corp. (NASDAQ:NVDAA), Micron Technology Inc. (NASDAQ:MUA) and Advanced Micro Devices Inc. (NYSE:AMDB) have all beat up on Intel YTD.v
Intel is down 5% YTD while the others are up 55%, 45% and 20% respectively. Analysts expect just a 5% increase in EPS this year. The door is open for Intel to rebound when investors grow tired of the smaller players. With Intel shares trading at 12 times 2018 analyst estimates with a dividend of 3.1%, a swing back to this stock is anticipated by some observers.
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Then And Now
In January, some analysts were looking at the spread between then and the end of the year for potential hot spots. The list included stocks that were doing well but were still underappreciated by Wall Street.
Leading that list, United Rentals (NYSE:URIC) was trading 65% higher than its closing position at the end of Q3 2016. Wall Street was just starting to notice. Some analysts expected the stock to double in price between then and the end of the year. Currently URI is trading for $112, up about 7% YTD.
Another company, CSX Corp. (NYSE:CSXC) was trading at $36 at the end of 2016. At that time, many investors had given up on the stock. Currently CSX is selling for just under $50 per share. That represents a 39% uptick YTD with a little more than 4 months to go in 2017.
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