S&P's Best and Worst of 2008

Below we highlight the best and worst performing S&P 500 stocks for 2008 based on the components of the index as of the start of 2008. Just how bad a year was it? Besides the fact that the S&P 500 did not have one day where the index closed higher than its 2007 close, there were also only 29 stocks in the index that either finished the year in positive territory or stopped trading (due to an acquisition) at a level that was up for the year. The first table below highlights the fifteen worst performing stocks during the year. It should come as little surprise that all but one of these names (Circuit City) came from the Financial/Real Estate sector.

It doesn't take long to find the list of winners in 2008, and that's because there were barely any of them. And many of those that were up were involved in takeovers, as five of the fifteen best performing stocks in the S&P 500 were acquired during the year. Additionally, another two (UST and ROH) are currently involved in pending deals. Unfortunately for investors, many of the top performing stocks in 2008 were barely up by double digits in percentage terms, while most of the worst performers were down over 90%. Let's hope at this time next year, it's as hard to find losers as it was hard to find winners this year.

Comments

[Ricard:]

LOL, I thought I'd never see WalMart in a top performing chart again...

Jan 02 06:27 PM

[Lilguy:]

Most interesting insight: 1/3 of the 15 "most successful" stocks were acquired during the year, and Rohm & Haas may still be.

At least one, H&R Block, was coming off a spectularly calamitous 2007--and had nowhere to go (other than bankruptcy) than up.

On the down side, financials and real estate accounted for most of the big losers--and I mean really BIG!

Several value consumer plays in the list, led by Wal-Mart as well as a few bio-techs, led by Amgen. I expect that, if money can be made in the market this year, the trend will be similar: buyouts, consumer staples, and healthcare bio-techs will outperform; stay away from financials and real estate.

Jan 03 09:31 AM

[freefall51:]

I am absolutely puzzled by the price performance of AZO (Autozone);
in my view the financial picture is absolutely over-leveraged in a time where credit availability is restrained; latest credit rating is BBB;

From the Aug 08 numbers I take Debt/ Equity is 22/1; AZO are buying back shares on credit and manage to lower the equity per share from $ 6 to $ 3.60 in a year. The incomplete numbers for the last quarter ending Nov. hint an equity of only $ 1/share and the share price sits at $ 141 and a triple top high. What kind of improvement can one reasonably expect form here? I think AZO is an excellent short candidate.

Jan 03 10:01 PM

[sr9web:]

Great article - thanks!

Jan 04 04:05 AM

[Jonathan Ob...:]

ABK worst performing " try big gainer my june 2 buy went from 1.11 to 9.99 in 2 months

Jan 05 10:02 AM

[Michael Del...:]

Jon O,

Nobody said you couldn't make money trading the stocks on the Worst list. But you could not make money investing in these stocks. And that is why ABK is now sitting at $1.19. It was $25.80 on Jan 2, 2008.

Jan 19 11:16 AM