10 Stocks Already in a Bear Market
Flash crashes, corrections and bears, oh my!
Heightened volatility in the stock market has fueled press coverage about recent declines and what to do about them. (The sage advice: Stay put with your investments and don't overreact.) The general rule of thumb is a correction occurs when the market declines 10 percent from its 52-week high, whereas a bear market is not official until the decline is 20 percent or more below the recent high. Overall, the market has yet to near the dreaded bear threshold. That said, many of its components are already there. According to FactSet, 55 of Standard & Poor's 500 index companies are in a bear market. These are 10 with the deepest drops.
Chipotle Mexican Grill (NYSE: CMG)
Once a Wall Street darling that seemed to promise unstoppable growth, Chipotle stock has suffered a rout since a string of E.coli outbreaks in 2015. Although investors seem encouraged by the news Taco Bell CEO Brian Niccol will take the helm as Chipotle's new CEO in March, the stock is down from its all-time high of $758.61 in August 2015. "Despite aggressive efforts to improve brand perceptions through a new national advertising campaign and the launch of new products including queso recently, customer review scores have not shown any signs of improvement," UBS analyst Dennis Geiger says.
CMG stock performance: -42.2 percent
General Electric Co. (GE)
General Electric stock has fallen dramatically over the last year, as the company has repeatedly missed earnings expectations. New CEO John Flannery, who replaced Jeffrey Immelt in August, told CNBC in October that the company's cash flow was "horrible" and everything was under review. "The businesses, our culture, corporate spending. Everything in the company has been up for examination. Every stone turned. No sacred cows," he says. Flannery is trying to streamline the company to focus on GE's core businesses of aviation, power and health care. Change cannot come soon enough for investors, though.
GE stock performance: -51.3 percent
Baker Hughes, a GE Co. (BHGE)
Baker Hughes has not been helped by the fact that it's partly owned by GE, which lately has faced its own financial problems, and according to comments by GE CEO John Flannery in November, is considering selling off its stake in the business. Baker Hughes is one of the largest players in oilfield services, but it has underperformed competitors in the last year.
BHGE stock performance: -57.7 percent
PG&E Corp. (PCG)
One of the largest utility companies in the country, PG&E's stock has been in a free fall since wildfires ravaged Northern California in October. The company suspended its dividend in December, citing potential major liability for the fires. Damaged PG&E equipment was found near the source of the fires. The company says if its "equipment is found to have been a substantial cause of the damage in an event such as a wildfire -- even if the utility has followed established inspection and safety rules -- the utility may still be liable for property damages and attorneys' fees associated with that event."
PCG stock performance: -44.2 percent
Scana Corp. (SCG)
Scana, an energy holding company based in South Carolina, has been under pressure from both shareholders and local lawmakers, after its V.C. Summer nuclear project failed. The company began work on the plant in 2009 but it was repeatedly delayed as costs spiraled out of control. Scana abandoned the project in July after spending $9 billion on it along with state-owned utility Santee Cooper. Public uproar has ensued, with lawmakers in South Carolina's House of Representatives recently voting to strip the nuclear project's costs from local electric rates.
SCG stock performance: -47.8 percent
Chesapeake Energy Corp. (CHK)
Chesapeake Energy's stock has been on a gradual decline for over a year, as natural gas prices have declined and put pressure on the company's margins. Headquartered in Oklahoma City, Chesapeake Energy has operations in Louisiana, Ohio, Oklahoma, Pennsylvania, Wyoming and Texas.
CHK stock performance: -55.6 percent
Newell Brands (NWL)
Newell Brands, the maker of Rubbermade containers, Sharpie markers and Elmer's Glue has seen its stock decline almost 50 percent from its 52-week highs. Investors have punished Newell for poor execution of its acquisition of Jarden, another maker of a hodgepodge assortment of goods ranging from Mr. Coffee and Crock-Pot kitchen appliances to Marmot ski jackets and Yankee Candle. The deal closed in April 2016, but it's been difficult to merge all the brands under one roof. In January, Newell announced plans to restructure and refocus on its core brands, which may mean the firm has to sell other assets.
NWL stock performance: -49.6 percent
Range Resources Corp. (RRC)
Of all companies in the S&P 500, Range Resources Corp. has suffered the deepest decline from its 52-week high. That's in part due to investors' disappointment in the company's investment in the Terryville gas field in Louisiana. Range Resources specializes in natural gas exploration, and when the firm acquired the Terryville location in 2016, its CEO Jeff Ventura raved that production there might eventually rival that of the company's prolific wells in the Marcellus shale. That has so far not been the case. Instead, the energy company recently announced it will keep production flat in Terryville for the next five years.
RRC stock performance: -58.7 percent
Envision Healthcare Corp. (EVHC)
Envision Healthcare's stock has enjoyed some upward momentum since November, but before that it was largely on a bumpy decline for two full years. The company manages health care services, including paramedics, EMTs, nurses and physicians, and in November, its executives explained that two of its key markets had been hard hit by Hurricanes Harvey and Irma.
EVHC stock performance: -47.5 percent
Incyte Corp. (INCY)
Incyte, a biopharmaceutical company based in Wilmington, Delaware, is best known for its drug Jakafi, which is used to treat serious bone marrow disorders myelofibrosis and polycythemia vera. That drug alone accounts for the majority of the company's revenue. Incyte's stock has largely been on the decline since last year, though, when the FDA declined to approve Olumiant, a rheumatoid arthritis drug made by the company along with partner Eli Lilly & Co. (LLY)
INCY stock performance: 43.9 percent
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