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These Are the Best and Worst Stocks Since the Market Bottom

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Since major indexes bottomed out in March 2009, the S&P 500 is up nearly 250 percent. The median and average gains for components of the index are even more impressive, at about 450 percent and 320 percent, respectively.

But the recovery certainly hasn’t been universal; several S&P 500 stocks are actually worth less today than they were in March 2009. Below are summaries of a few stocks that missed out on an incredible rally now more than six years old.

Big Losers: RIG, FSLR, and NEM

Transocean (RIG)

Transocean is one of the world’s largest offshore drilling companies, and owns close to half of the deepwater platforms in use around the globe.

For the last several years, RIG stock has been hit by one disaster after another. In addition to the general slide in oil prices, the company lost a huge chunk of its value in April 2010 when one of its Deepwater Horizon rig caught fire and began leaking oil into the Gulf of Mexico.

Transocean Chart

Between March 2009 and October 2015, RIG lost nearly two-thirds of its value.

First Solar (FSLR)

First Solar is the largest solar energy equipment manufacturer, and was one of the hottest stocks of the mid-2000s as optimism over alternative energy soared. But the stock has been sliding for the last several years for a number of reasons, including diminished excitement over solar power as oil prices slide.

First Solar Chart

Even after surging more than 10 percent on the last trading day of October, FSLR stock is down nearly 80 percent from its all time high.

Newmont Mining (NEM)

Newmont Mining, one of the largest producers of gold in the world, actually held up quite well during the last recession; by early 2010, the stock was back above early 2008 levels. But NEM has been in freefall over the last several years as gold prices have steadily declines, threatening the viability of mining companies:

Newmont Mining Chart

NEM has lost about half of its value since March 2009.

Big Winners: GGP, AAL, and RCL

General Growth Properties (GGP)
The biggest winners during the recovery have been the stocks whose survival seemed unlikely at the worst of the recession. General Growth Properties, an operator of shopping malls, saw one of the steepest sell offs as market panic spread in late 2008.

General Growth Chart

Those who got in at the bottom — at one point shares of GGP could be purchased for a quarter — have realized gains of more than 2,000 percent in the time since.

American Airlines (AAL)

American Airlines has a long history of financial struggles, so it was no surprise that investors dumped the stock in 2008. But as demand for air travel has surged in recent years, airline stocks have seen an impressive turnaround as well:

American Airlines Chart

AAL stock is up close to 2,000 percent from its 2009 lows.

Royal Caribbean Cruises (RCL)

Many providers of big ticket consumer items were hit hard during the last recession. Those that survived — such as Royal Caribbean Cruises — have generally seen a sharp reversal of fortune.

Royal Caribbean Chart

After losing more than 80 percent of its value between January 2008 and March 2009, RCL stock is up about 1,600 percent from its lows.

Hits and Misses

Stock picking remains a risky proposition; in addition to the behavioral biases that stand in the way of investors, there is an extremely wide distribution of returns. In hindsight, the choice between GGP or RIG in early 2009 is a no-brainer — but at the time, plenty of smart and rational investors saw more upside in the beaten-down drilling company.

This article, These Are the Best and Worst Stocks Since the Market Bottom, first appeared on Dividend Reference.


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