In this article, we will take a look at the 10 blue-chip stocks at all-time lows.
The inflation storm and subsequent rate hikes by the Federal Reserve have left investors on the back foot as a strange skepticism has taken over the market. After every couple of weeks investors find themselves looking over their shoulders for that next important piece of data or the next Federal Reserve meeting, always guessing what the central bank’s next move might be and in what direction the economy would go. The stock market might gain when the Federal Reserve will announce that it’s pausing interest rate hikes for now. And then the stock will fall yet again when the next jobs report or inflation data will show the Fed will have to start raising rates again. In this volatile environment one would wonder what the market maestros would be doing? Legendary investors who became billionaires investing in the stock market would have seen it all: the rate hikes, inflation surges, geopolitical headwinds, recessions and market turmoil. What was their secret tool to survive or even thrive through market storms?
Lessons from Paul Tudor Jones
Turning to legendary value investor Paul Tudor Jones gives us some glimpse of well thought out strategies while investing in the stock market. Paul Tudor Jones has a spectacular track record when it comes to returns. As of 2014 Jones’ fund never posted a single losing year in a 25-year period. Jones have seen it all and over the years his investment philosophy evolved and matured. The single biggest lesson that pervades through Jones’ investing philosophy is his vehement dislike for losing money. He calls himself one of the most conservative investors in the world. In a report compiled by market research firm Macro Ops, which talks at length about the journey of Jones in the stock market and how his thought process evolved, one quote of Jones that caught our attention was:
“The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge. Because I think there are certain situations where you can absolutely understand what motivates every buyer and seller and have a pretty good picture of what’s going to happen. And it just requires an enormous amount of grunt work and dedication to finding all possible bits of information.”
Granted that knowledge equips the investor with an immense power and confidence, the real secret behind how Jones became a conservative, risk-averse investor is the huge losses that Jones suffered during the start of his investing journey when he was very young. Time taught Jones to never let ego and overconfidence get in the way of making rational decisions. The same report quotes Jones as saying:
“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.”
Jeremy Siegel’s Latest Thoughts on the Stock Market
Talking to CNBC, Wharton professor and famous financial analyst Jeremy Siegel said that people might think that the Federal Reserve would have an idea of what the market or economy might look like in 2024 but that’s not the case. The professor said being the central bank, the Fed would sound hawkish but they know that it would not make sense to trade recession for millions of layoffs for a slight reduction in inflation. Siegel also said that the Federal Reserve should not increase interest rates given the political environment. Siegel thinks the only reason why the Fed would turn to decreasing interest rates would be an economic slowdown or huge rise in unemployment because the government cannot afford a full-blown recession during an election year.
Siegel also said that equities could remain firm until the end of this year because the stock market loves when economic data shows a strong economic activity. That’s why, according to Siegel, the stock market rallies when we see strong economic activity numbers despite rising inflation.
Siegel also questioned the rationale behind the Fed’s target of bringing inflation down to 2%. He said if they try to bring the inflation down to 2% by slamming the brakes and slowing down the economy, they will achieve the target but the results would be ugly.
Answering a question whether he would advise investors to invest in the market right now, the professor said “absolutely,” adding that the market is undervalued.
Photo by Chris Liverani on Unsplash
Our Methodology
For this article we conducted a rigorous research to find notable, famous or established companies that are trading near their all-time lows or hit all-time lows earlier this year. Some of these companies hit their new lows in close to 10 years in 2023. We included those companies in this article too to give the readers an overall outlook on the most important companies that are currently down but could gain value in the future.
Blue-Chip Stocks at All-Time Lows
10. Beyond Meat, Inc. (NASDAQ:BYND)
Market Cap: $634.8M
Beyond Meat, Inc. (NASDAQ:BYND) shares are trading around its all-time lows. Beyond Meat, Inc. (NASDAQ:BYND) has lost about 36% over the past one year. Cowen recently gave an Underperform rating to Beyond Meat, Inc. (NASDAQ:BYND) due to its deteriorating financial position.
In August Beyond Meat, Inc. (NASDAQ:BYND) took a hit after the company posted weak Q2 results. For the full year Beyond Meat, Inc. (NASDAQ:BYND) sees its net revenue in the range of $360 million to $380 million, which would be a decrease of 14% to 9% compared to 2022.
Of the 910 hedge funds in Insider Monkey’s database, 15 funds reported owning stakes in Beyond Meat, Inc. (NASDAQ:BYND).
9. IHS Holding Limited (NYSE:IHS)
Market Cap: $1.5B
IHS Holding Limited (NYSE:IHS) holdings operates communications infrastructure in Africa. In August IHS Holding Limited (NYSE:IHS) posted second quarter results. GAAP EPS in the quarter came in at -$3.73, missing estimates by $3.88. Revenue in the period jumped 17% year over year to $546.2 million, beating estimates by $20.06 million.
As of the end of the second quarter of 2023, 15 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in IHS Holding Limited (NYSE:IHS). The biggest stakeholder of IHS Holding Limited (NYSE:IHS) during this period was
8. Peloton Interactive, Inc. (NASDAQ:PTON)
Market Cap: $1.6B
While it’s questionable to label Peloton Interactive, Inc. (NASDAQ:PTON) as a blue chip company, the stock nonetheless is quite famous and has repute. After all Peloton Interactive, Inc. (NASDAQ:PTON) was a Wall Street darling during the pandemic days. It has since fallen from its grace and is struggling to find direction. Peloton Interactive, Inc. (NASDAQ:PTON) shares have lost about 50% in value over the past one year.
As of the end of the second quarter of 2023, 46 hedge funds tracked by Insider Monkey had stakes in Peloton Interactive, Inc. (NASDAQ:PTON). The biggest stakeholder of Peloton Interactive, Inc. (NASDAQ:PTON) during this period was Ricky Sandler’s Eminence Capital which owns a $59 million stake in the company.
7. Lucid Group, Inc. (NASDAQ:LCID)
Market Cap: $11.8B
EV company Lucid Group, Inc. (NASDAQ:LCID) is trading near its all-time lows. Lucid Group, Inc. (NASDAQ:LCID) has lost about 64% over the past one year. Lucid Group, Inc. (NASDAQ:LCID) is also one of the stocks Jim Cramer is recommending investors to sell.
As of the end of the second quarter of 2023, 18 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Lucid Group, Inc. (NASDAQ:LCID).
Recently Lucid Group, Inc. (NASDAQ:LCID) talked about its future plans in Q2 earnings call.
“Work has been well underway on our next-generation power technology for our midsized platform. Now also in September, we plan to commence production of Sapphire. Preproduction has, in fact, already begun, and we’ve held a number of viewings for media and early customers already. Sapphire will boast a 0 to 60 time of 1.89 seconds, a 0 to 100 miles an hour time of 3.84 seconds, and a standing-quarter mile time of 8.95 seconds. But whilst I think the power and the performance is impressive, I can only begin to tell you how immensely delightful and responsive Sapphire is just to drive normally, even when you choose to exploit a mere fraction of the performance. This, to me, is one of its most surprising, engaging, even endearing attributes. Sapphire fuses hypercar performance, delightful handling, the tractability and turning response of torque vectoring with everyday usable in an unprecedented combination.”
Read the full earnings call transcript here.
6. Royalty Pharma plc (NASDAQ:RPRX)
Market Cap: $11.8B
Royalty Pharma plc (NASDAQ:RPRX) ranks 6th in our list of the all-time low stocks. In August Royalty Pharma plc (NASDAQ:RPRX) posted second quarter results. Consolidated net income in the period came in at $351 million. Revenue in the quarter inched up 0.4% year over year to $538 million, surpassing estimates by $1.41 million.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Market Cap: $20.2B
EV company Rivian Automotive, Inc. (NASDAQ:RIVN) hit an all-time low back in March this year after the company said it would be raising an additional $1.3 billion in cash via a green convertible note. While Rivian Automotive, Inc. (NASDAQ:RIVN) has recovered from its all-time low value since then, the stock is down 36% over the past 12 months.
Morgan Stanley recently gave bullish comments on Rivian Automotive, Inc. (NASDAQ:RIVN) after meeting with management at a conference in California. Morgan Stanley’s Adam Jonas likes Rivian Automotive, Inc. (NASDAQ:RIVN)’s gross profit improvement.
Baron Fifth Avenue Growth Fund made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its second quarter 2023 investor letter:
“During the second quarter, we also added to our position in EV manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN). After a complex period since the company’s IPO, in which Rivian tried to ramp multiple vehicles simultaneously while struggling to overcome unprecedented supply-chain bottlenecks, the company seems to have turned the corner. Production is now starting to scale up, which should help the company improve its plant utilization and subsequently help gross margins. The company is making notable progress in cost improvements by renegotiating with its suppliers, utilizing its larger scale to get better pricing, as well as, incorporating various technological advancements that would improve its cost structure while also improving the vehicles’ performance (for example it’s Enduro drive unit which is progressing ahead of plan).”
4. Block, Inc. (NYSE:SQ)
Market Cap: $28.1B
A look at Block, Inc. (NYSE:SQ) P/S ratio shows the stock is valued near it all-time lows. Block, Inc. (NYSE:SQ) has been struggling lately and has lost about 18% in value over the past one year. Latest filings show that Alyssa Henry, the CEO of Square merchant payment system, is stepping down. She will be replaced by none other than Jack Dorsey, the CEO of Block, Inc. (NYSE:SQ).
As of the end of the second quarter of 2023, 66 hedge funds tracked by Insider Monkey reported owning stakes in Block, Inc. (NYSE:SQ) as of the end of the second quarter.
3. JD.com, Inc. (NASDAQ:JD)
Market Cap: $48.3B
JD.com, Inc. (NASDAQ:JD) shares have lost about 46% in value over the past year. While JD.com, Inc. (NASDAQ:JD) is still about $10 above its all-time low it recently did hit its 52-week lows.
As of the end of the second quarter of 2023, 64 hedge funds tracked by Insider Monkey reported owning stakes in JD.com, Inc. (NASDAQ:JD).
2. AT&T Inc. (NYSE:T)
Market Cap: $109.4B
AT&T Inc. (NYSE:T) fell to its 30-year lows back in July to hit about $13.45 after a report from the Wall Street Journal said AT&T was one of the telecom companies that left a huge network of lead cables throughout the country. AT&T Inc. (NYSE:T) has since recovered and was trading at around $15.21 as of September 20. AT&T Inc. (NYSE:T) shares have lost about 18% year to date through September 20.
As of the end of the second quarter of 2023, 56 hedge funds out of the 910 funds tracked by Insider Monkey reported owning stakes in AT&T Inc. (NYSE:T). The biggest stakeholder of AT&T Inc. (NYSE:T) was D E Shaw which had a $226 million stake in the company.
1. The Walt Disney Company (NYSE:DIS)
Market Cap: $152.2B
While The Walt Disney Company (NYSE:DIS) hasn’t seen its all-time low (yet), the media giant’s stock did fell to a nine-year low in August. The Walt Disney Company (NYSE:DIS) has been facing deep-rooted troubles as its theme parks and Marvel Studios business face challenges. Disney+ is also facing tough competition in a market that is fast becoming saturated with major players fighting to get new subscribers. The Walt Disney Company (NYSE:DIS) recently announced an increased investment plan for its Disney Parks, Experiences and Products business. Some analysts believe The Walt Disney Company (NYSE:DIS) stock is a long-term buy as the company is expected to turn its business around in the months and years to come.
Raymond James recently started covering The Walt Disney Company (NYSE:DIS) with an Outperform rating. The firm’s analyst Ric Prentiss said:
“The traditional media sector is in a transition period from the very profitable but secularly declining linear business to the more difficult and competitive but secularly growing streaming business, further impacted by COVID-19’s impact on movie theater attendance, a cyclical advertising downturn, broader macroeconomic concerns, plus both a writers’ and actors’ strike.”
Diamond Hill Large Cap Strategy made the following comment about The Walt Disney Company (NYSE:DIS) in its Q2 2023 investor letter:
“Our bottom contributors in Q2 included health insurance company Humana, biopharmaceutical company Pfizer and global entertainment company The Walt Disney Company (NYSE:DIS). Disney’s Bob Iger returned to the CEO’s seat in November 2022, replacing Bob Chapek, who left following a turbulent tenure. As a result of disappointing quarterly results and incremental commentary suggesting a more inline strategy with other media, the market has become less confident that Iger will achieve a turnaround by the end of his 1.5- year contract. We continue to believe Disney has a unique collection of assets and owns some of the best content among all media companies. Their ability to monetize this content across many platforms — studio, theme park, toys, streaming — is incredibly valuable; thus we remain investors.”
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Disclosure: None. 10 Blue-Chip Stocks at All-Time Lows is originally published on Insider Monkey.
