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5 Worst Investment Ideas Of 2017 Thus Far

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5 Worst Investment Ideas Of 2017 Thus Far

Now that investors are at the halfway point of 2017, it’s time to take a look back at what has been an exceptionally strong year for U.S. stocks so far. The SPDR S&P 500 ETF Trust (NYSE: SPY) is up 8.6 percent in the first half of the year, but not all stocks have been invited to the party.

Related Link: 9 Most Shorted ETFs In The Market

5 Worst-Performing S&P 500 Stocks

Here’s a look at the five worst-performing S&P 500 stocks so far this year.

5. Diamond Offshore Drilling: -38.8 percent

The weakest sector of the market in 2017 has been the energy sector, as the recovery in the global oil market has hit a brick wall. Offshore drillers require some of the highest break-even crude prices of the entire oil industry, so offshore stocks like Diamond Offshore Drilling Inc (NYSE: DO) have been hit hard as WTI crude oil prices have dipped back below $45/bbl.

4. Southwestern Energy: -43.8 percent

Oil exposure will be the major theme of this list of worst investment ideas, but exploration and production stocks like Southwestern Energy Company (NYSE: SWN) have been particularly volatile. Oil investors are hoping that OPEC will step up with more aggressive production cuts and/or U.S. producers will dial back their production growth in the second half of the year.

3. Transocean: -44.1 percent

Transocean LTD (NYSE: RIG)’s struggles in 2017 are no mystery. Revenue has been cut in half in the past two years as the company struggles to survive the oil slump.

2. Fossil Group: -59.9 percent

Fossil Group Inc (NASDAQ: FOSL) is still one of the top brands in traditional watches. Unfortunately, the traditional watch business is in the middle of what most investors see as a secular decline. Fossil has a lot of ground to make up to compete with the leading brands in the smart-watch and wearable devices business, including Apple Inc. (NASDAQ: AAPL) and Fitbit Inc (NYSE: FIT).

1. Frontier Communications: -65.6 percent

The worst investment idea in the entire S&P 500 so far in 2017 has been Frontier Communications Corp (NASDAQ: FTR), which lost nearly two-thirds of its market cap in the first half of the year. Frontier’s purchase of Verizon Communications Inc. (NYSE: VZ)’s wireline business in Florida, California and Texas has done nothing to stop Frontier’s outflow of customers, and the stock is now in danger of dipping below the Nasdaq’s $1 minimum listing requirement.

 

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