In this video I am going to look at the Worst Performing Stocks of 2022 from the S&P 500 Index (Year to Date).

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Intro

We have seen all the major indexes in the US down in the first half of the year.

- S&P 500 - Worst Q1 and Q2 since 1970.
- Dow Jones – Worst Q1 and Q2 since 1962.
- Russell 2000 and NASDAQ – Worst Q1 and Q2 in history.

The 5 worst performing stocks in the S&P 500 are:

Remember, these are the worst performing stocks in terms of the drop of their stock price, not necessarily in terms of metrics I normally look at such as free cash flow, net income, or Return on Invested Capital (ROIC).

- Netflix (NFLX) – Down 70.97%
- Etsy (ETSY) – Down 66.56%
- Align (ALGN) – Down 63.99%
- PayPal (PYPL) – Down 62.97%
- Bath & Body Works (BBWI) – Down 61.43%

Remember, generally institutional investors have a short time horizon of the next few quarters, not years out into the future. If they have been informed the business might suffer for the next few quarters or even years they will look to exit their positions in favour of some other stock.

The majority of the companies we have looked at are still in a strong position to grow into the future. This particularly applies to Netflix, Esty, and PayPal. They are suffering right now due to mainly macroeconomic factors with rising inflation and interest rates. They also had growth pulled forward due to the pandemic.

Consider the moat of the business, the management team, and whether your valuation provides a good margin of safety at the current price. I’ve made previous videos on this so I will leave that playlist at the end for you to check out.

Enjoy the video!

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Disclaimer: Dan Powell is not a financial advisor. All content is for education and entertainment only. Always seek assistance from a qualified professional before making any investment decisions.