These 15 Important Stocks are Losing Value in 2022

Published June 16, 2022 at 10:00 am EDT Updated September 7, 2026 at 2:14 pm EDT

In this article, we discuss the 15 important value stocks that are losing value in 2022.

Value stocks have provided investors with some much-needed relief from a devastating storm at the stock market where high-growth names, which had become very popular in the last few years, are pummeled amid soaring inflation and aggressive rate hikes. The dumping of high growth names is evident from the performance of the benchmark S&P 500 and the NASDAQ Composite in the past six months. Both indexes, which are growth-heavy, are down 21% and 30% year-to-date respectively. Compared to this, the popular value index, the MSCI World Value Index, has slipped just 7% amid the larger panic. Bloomberg data reveals that an investing strategy based on investments in firms that are cheap relative to their book values and betting against expensive stocks has generated profits of around 30% so far this year.

“A Regime Shift is Underway”

Despite this outperformance, major value names are still losing value as investors move towards gold and other safer bets. Some of the top stocks that are losing value in 2022 include Lowe’s Companies, Inc. (NYSE:LOW), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG). However, analysts do not expect this trend to last. Yoram Lustig, the head of multi-asset solutions for Europe and Latin America at US asset manager T Rowe Price, recently told news publication Financial Times that a “regime shift is underway” at the market, pointing to the durable conditions that are being set for value stocks to outshine their growth counterparts. Rob Arnott, the chief of consultancy Research Affiliates, also echoed these comments, noting that the worst decade for value stocks in history was over and advised investors to cash in on the “fruits of the rebound”.

Photo by Sajad Nori on Unsplash

Our Methodology

Famous stocks that have suffered losses in 2022 and are relatively undervalued were identified. These were then sorted using the Price-to-Earning (PE) ratios and Year-to-Date losses. Stocks that have a PE ratio of less than 25 were preferred for the list. The business fundamentals and analyst ratings of each company are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the number of hedge funds that hold stakes in each company.

These Important Stocks are Losing Value in 2022

15. Genuine Parts Company (NYSE:GPC)

Number of Hedge Fund Holders: 29

PE Ratio: 20.51

YTD Decline in Share Price as of June 15: 3.50%

Genuine Parts Company (NYSE:GPC) deals in automotive and industrial parts. The company has recently expanded presence in key European markets like Spain and Portugal through the purchase of automotive aftermarket parts distributor Lusan Group. The latter runs over 37 stores across the region and is expected to generate annual revenues of around €115 million for the company. It also runs a national distribution center.

On May 10, Bank of America analyst Elizabeth Suzuki upgraded Genuine Parts Company stock to Neutral from Underperform with a price target of $133, noting that the valuation of the stock appeared fair and the firm had a long history of dividend growth.

At the end of the first quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $457 million in Genuine Parts Company, the same as in the preceding quarter worth $632 million.

Just like Lowe’s Companies, Inc., Johnson & Johnson, and The Procter & Gamble Company, Genuine Parts Company is one of the stocks that elite investors are keeping their eye on.

14. Church & Dwight Co., Inc. (NYSE:CHD)

Number of Hedge Fund Holders: 33

PE Ratio: 25.27

YTD Decline in Share Price as of June 15: 19.01%

Church & Dwight Co., Inc. makes and sells household and personal care products. In late April, the firm posted earnings for the first quarter of 2021, reporting earnings per share of $0.83, beating market estimates by $0.06. The revenue over the period was $1.3 billion, up close to 5% year-on-year and beating estimates by $10 million. However, the firm posted disappointing guidance numbers, noting that cost pressures would limit EPS growth to around 4%. The firm had previously guided to a range of up to 8%.

On March 29, Goldman Sachs analyst Jason English maintained a Neutral rating on Church & Dwight Co., Inc. stock and lowered the price target to $101 from $105, noting that “inflation will likely be higher and more prolonged through 2022 than previously anticipated”.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Church & Dwight Co., Inc. with 8.4 million shares worth more than $838 million.

13. Illinois Tool Works Inc. (NYSE:ITW)

Number of Hedge Fund Holders: 36

PE Ratio: 21.85

YTD Decline in Share Price as of June 15: 23.51%

Illinois Tool Works Inc. (NYSE:ITW) markets industrial products and equipment. The company has an impressive dividend history stretching back over 45 years. In the past 26 years, the dividend payouts have registered consistent growth. The sector median in this regard is just two years, attesting to the reliability of the business model of the firm in a volatile market. On May 6, the firm declared a quarterly dividend of $1.22 per share, in line with previous. The forward yield was 2.34%.

On May 4, investment advisory Credit Suisse maintained an Outperform rating on Illinois Tool Works Inc. stock and lowered the price target to $261 from $267. Analyst Jamie Cook issued the ratings update.

At the end of the first quarter of 2022, 36 hedge funds in the database of Insider Monkey held stakes worth $425 million in Illinois Tool Works Inc., compared to 29 the preceding quarter worth $408 million.

12. Stanley Black & Decker, Inc. (NYSE:SWK)

Number of Hedge Fund Holders: 38

PE Ratio: 12.87

YTD Decline in Share Price as of June 15: 42.74%

Stanley Black & Decker, Inc. markets tools and storage for industrial users. On April 28, the firm posted earnings for the first quarter of 2022, reporting earnings per share of $2.10, beating market estimates by $0.40. The revenue over the period was $4.4 billion, up close to 20% compared to the revenue over the same period last year. The firm is also a reliable dividend player with forward yield of close to 3%.

On April 29, Baird analyst Timothy Wojs maintained an Outperform rating on Stanley Black & Decker, Inc. stock and lowered the price target to $160 from $188, noting that there was long-term value in the shares as investors focused on better execution.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in Stanley Black & Decker, Inc. with 1 million shares worth more than $141 million.

Here is what Saturna Capital has to say about Stanley Black & Decker, Inc. in its Q3 2021 investor letter:

“Stanley Black & Decker, Inc. performed well through the first part of the year but struggled over the summer. China accounts for much of its production, and their zero-tolerance approach to pandemic safety measures has led to disruption, compounded by shipping difficulties and rising materials expenses. We still believe one outcome of the pandemic will be a buoyant home improvement market, given that one never knows when the next pandemic lockdown may occur.”

11. Emerson Electric Co. (NYSE:EMR)

Number of Hedge Fund Holders: 45

PE Ratio: 17.70

YTD Decline in Share Price as of June 15: 6.50%

Emerson Electric Co. (NYSE:EMR) markets electrical components and equipment. In late May, news platform Bloomberg reported that the company was weighing the possible sale of the garbage disposal unit of the business that is worth close to $3 billion. The unit is understood to be an attractive acquisition target of private equity firms and publicly traded rivals. The unit, named Insinkerator, makes garbage disposal products and instant hot water dispensers.

On May 17, Citi analyst Andrew Kaplowitz maintained a Buy rating on Emerson Electric Co. stock and lowered the price target to $111 from $119, noting there were several favorable aspects to the Aspen Technology transaction of the firm.

Among the hedge funds being tracked by Insider Monkey, New York-based firm Millennium Management is a leading shareholder in Emerson Electric Co. with 2.1 million shares worth more than $207 million.

10. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 50

PE Ratio: 12.22

YTD Decline in Share Price as of June 15: 36.43%

Target Corporation (NYSE:TGT) is a general merchandise retailer. On June 9, the company declared a quarterly dividend of $1.08 per share, an increase of close to 20% from the previous dividend of $0.90 per share. The forward yield was 2.76%. The dividend is payable to shareholders by early September. The firm has been paying a growing dividend to shareholders for the past fifty-four years.

On June 7, DA Davidson analyst Michael Baker maintained a Buy rating on Target Corporation stock and lowered the price target to $171 from $205, noting the tough decisions the firm was making to set up for a “better second half with cleaner inventories”.

Among the hedge funds being tracked by Insider Monkey, Boston-based Arrowstreet Capital is a leading shareholder in Target Corporation with 2.5 million shares worth more than $530 million.

In its Q2 2021 investor letter, Nelson Capital Management, an asset management firm, highlighted a few stocks and Target Corporation was one of them. Here is what the fund said:

“We added Target Corporation to our consumer staples sector. Target Corporation offers a broad array of products in owned and known brand items at affordable prices. Its omni-channel fulfillment centers allow customers to receive their items via in-store pickup, curbside pickup, same-day shipping and regular shipping while simultaneously reducing operating costs. With a significantly lower valuation than peers and a unique operating strategy, Target Corporation is an attractive holding.”

9. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 50

PE Ratio: 30.76

YTD Decline in Share Price as of June 15: 11.93%

Colgate-Palmolive Company (NYSE:CL) makes and sells consumer products. The firm is one of the most reliable players in the consumer products space with a dividend history stretching back close to six decades. In the past 21 years, these payouts have been consistently growing. On June 9, the firm declared a quarterly dividend of $0.47 per share, in line with previous. The forward yield was 2.45%.

On May 23, Barclays analyst Lauren Lieberman maintained an Equal Weight rating on Colgate-Palmolive Company stock and lowered the price target to $71 from $77, noting that estimates were being reduced across the large cap personal care sector for 2023.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in Colgate-Palmolive Company with 11 million shares worth more than $856 million.

8. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 51

PE Ratio: 14.08

YTD Decline in Share Price as of June 15: 23.88%

3M Company (NYSE:MMM) is a diversified technology company. On June 10, the company announced that it had obtained approval from Belgian authorities to begin the process toward resuming PFAS manufacturing operations at its Zwijndrecht facility. The expects several weeks for the process to move towards manufacturing. The company also said it is in talks with the government to fund cheaper cleanup actions at the facility.

3M Company posted earnings for the first quarter of 2022 on April 26, reporting earnings per share of $2.65, beating market estimates by $0.34. The revenue over the period was $8.8 billion, beating expectations by $50 million.

Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in 3M Company with 6 million shares worth more than $898 million.

7. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 60

PE Ratio: 25.57

YTD Decline in Share Price as of June 15: 17.63%

Walmart Inc. (NYSE:WMT) operates as a retail firm. On June 8, the company announced that it was expanding partnerships with electric, hydrogen, and other clean energy power vehicles as it seeks to meet a zero emissions target set for 2040. The fleet of trucks used by the firm will be powered by companies like Chevron, Cummins, and Nikola. The firm is also expanding the use of hydrogen powered vehicles and has said it will use these as a superior option in the space if the price is brought down.

On June 5, Baird analyst Peter Benedict maintained an Outperform rating on Walmart Inc. stock with a price target of $155, noting that the firm offered a healthy “blend of defensive near-term appeal and disruptive longer-term optionality”.

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Walmart Inc. with 15 million shares worth more than $2.2 billion.

6. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 62

PE Ratio: 21.25

YTD Decline in Share Price as of June 15: 8.76%

PepsiCo, Inc. (NASDAQ:PEP) makes and sells beverages and convenient foods. The firm has a solid track record in the dividend space and has paid a growing dividend to shareholders for the past fifty years. On May 3, the firm declared a quarterly dividend of $1.15 per share, an increase of close to 7% from the previous dividend of $1.075 per share. The forward yield was 2.74%. The dividend is payable to shareholders by late June.

On April 27, Guggenheim analyst Laurent Grandet maintained a Buy rating on PepsiCo, Inc. and raised the price target to $193 from $188, appreciating another strong quarter of earnings by the company.

At the end of the first quarter of 2022, 62 hedge funds in the database of Insider Monkey held stakes worth $4.8 billion in PepsiCo, Inc., compared to 60 in the previous quarter worth $4.6 billion.

Along with Lowe’s Companies, Inc., Johnson & Johnson, and The Procter & Gamble Company, PepsiCo, Inc. is one of the stocks that hedge funds are monitoring.

5. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 65

PE Ratio: 15.06

YTD Decline in Share Price as of June 15: 14.52%

Lowe’s Companies, Inc. is a home improvement retailer. As interest rates rise, home prices have gone up as well, slowing down the pace of home improvement and resulting in a cooling of the real estate market. Although the company beat market estimates on earnings per share in the recent quarterly results, it missed sales estimates, resulting in a revenue miss as well. The firm blamed cold weather for the sales miss, saying it impacted outdoor sales.

On May 19, Jefferies analyst Jonathan Matuszewski maintained a Buy rating on Lowe’s Companies, Inc. stock and lowered the price target to $238 from $290, noting that the sales and margin guidance was achievable.

At the end of the first quarter of 2022, 65 hedge funds in the database of Insider Monkey held stakes worth $5.5 billion in Lowe’s Companies, Inc., compared to 72 in the preceding quarter worth $6.8 billion.

In its Q4 2021 investor letter, Pershing Square Capital Management, an asset management firm, highlighted a few stocks and Lowe’s Companies, Inc. was one of them. Here is what the fund said:

“Lowe’s Companies, Inc. is a high-quality business with significant long-term earnings growth potential

Supportive macroeconomic backdrop

-Aging housing stock, lack of new inventory, robust home equity values, and unprecedented pro project backlog

-COVID-19 causing millennials to enter the housing market

Positioned to grow EPS largely independent of market conditions

-Idiosyncratic revenue opportunities driving share gains

-Self-help initiatives catalyzing operating margin expansion

-Buybacks representing ~8% of current market capitalization planned for 2022

Multi-year business transformation with substantial earnings upside

-Margin target of 13% has substantial upside; Home Depot at ~15.3% and increasing

-Potential to generate high-teens EPS growth over the next several years.

Lowe’s Companies, Inc. continues to trade at a significantly discounted P/E multiple relative to Home Depot despite materially higher prospective EPS growth. LOW’s share price including dividends increased 63% in 2021 and has decreased 10% year-to-date in 2022.”

4. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 66

PE Ratio: 15.06

YTD Decline in Share Price as of June 15: 30.91%

Cisco Systems, Inc. (NASDAQ:CSCO) makes and sells networking and other products. On June 6, the company announced that it would be rolling out a new strategy for the security cloud business. As part of the new strategy, the firm expects to offer enhanced threat prevention, detection, response and remediation at scale.

On May 19, Jefferies analyst George Notte maintained a Buy rating on Cisco Systems, Inc. stock and lowered the price target to $52 from $65, noting that it was a bit early for economic pressures to filter through to the business of the firm.

At the end of the first quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Cisco Systems, Inc., compared to 57 in the previous quarter worth $3.4 billion.

Here is what Hayden Capital has to say about Cisco Systems, Inc. in its Q1 2022 investor letter:

“During the height of the tech bubble, Cisco’s stock peaked at ~$80 in March 2000, reaching up to a $500BN+ valuation (~26x Price / Sales, with ~17% operating margins or 156x operating profits). However, by the time it bottomed in September 2002, shares were trading at just ~$8.60 per share (~3.2x Price / Sales, ~21x operating profits). A little over a year later, the share price had doubled to ~$20, but then continued to trade around those levels in a range for the next 10 years.

So why were Amazon and Mercado Libre able to recover so quickly from their large draw-downs, while Cisco’s stock price remained anemic?

It seems the answer is in their differing growth profiles in the years afterwards. For example, Cisco Systems, Inc. revenues were $18.9BN in 2000, $22.3BN in 2001, $18.9BN in 2002, $18.9BN in 2003, and $22.0BN in 2004. By contrast, Amazon was able to grow its business by ~120% in the 3 years after the stock bottomed, and Mercado Libre grew by ~118% in the following 3 years. For Cisco Systems, Inc., it wasn’t until 2012 (11 years later) that revenues managed to double (to $46BN) from its original peak. Compare this to Amazon, who during those same 11 years, managed to grow its business 22x.”

3. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 72

PE Ratio: 23.29

YTD Decline in Share Price as of June 15: 18.98%

The Procter & Gamble Company markets branded consumer packaged goods. On April 20, the firm posted earnings for the third fiscal quarter, reporting earnings per share of $1.33, beating market estimates by $0.04. The revenue over the period was $19.4 billion, up over 7% compared to the revenue over the same period last year and beating estimates by $710 million. The firm also raises sales growth outlook to up to 5% for 2022 from previous 4%.

On June 1, Deutsche Bank analyst Steve Powers maintained a Buy rating on The Procter & Gamble Company stock and lowered the price target to $171 from $177, noting that the consumer products space had outperformed in a difficult backdrop in the past few months.

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in The Procter & Gamble Company with 9.9 million shares worth more than $1.5 billion.

2. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 79

PE Ratio: 11.00

YTD Decline in Share Price as of June 15: 15.28%

Pfizer Inc. (NYSE:PFE) makes and sells biopharma products. On June 14, a study by Mayo Clinic found that Paxlovid, an antiviral developed by Pfizer, had been successful in COVID-19 patients and resulted in just a few rebound cases. The study was carried out in around 500 coronavirus patients. The results were published in a clinical journal. The patients that took part in the trial were considered at high risk of developing severe disease because of existing health conditions.

On May 23, SVB Leerink analyst David Risinger initiated coverage of Pfizer Inc. stock with a Market Perform rating and a price target of $55, appreciating the initiatives of the management of the firm to boost innovation.

At the end of the first quarter of 2022, 79 hedge funds in the database of Insider Monkey held stakes worth $4 billion in Pfizer Inc., compared to 83 in the preceding quarter worth $5 billion.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. was one of them. Here is what the fund said:

“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer Inc. vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. While we accepted that recovery would not be smooth and that it would take time to deploy vaccines both domestically and globally, we decided that recovery was the logical path of least resistance and we were being well compensated for these risks.

What we did not account for, however, was vaccine hesitancy and the risk of further infection waves. As a result, the first variant wave, Delta, was a negative surprise to both the market and our team. When the risk surfaced, we immediately updated our probability-driven models and debated how we should react. The resulting conclusion was that the recovery would be delayed and that we should reduce our exposure quickly, subsequently targeting the most aggressive recovery stocks such as cruise lines. We again acted swiftly and decisively to the positive surprise that Pfizer Inc. had delivered a high-efficacy antiviral COVID-19 pill. This pill should greatly reduce COVID-19 severity risks globally, increasing the probability of a global travel recovery in 2022. While this is still true, the emergence of the highly mutated Omicron variant set off another infection wave which spurred us to again act quickly and further reduce our risk exposure. This back-and-forth may sound exhausting, but it highlights our compulsion to act if we determine a surprise has a large enough impact on the probabilities that power our valuation-driven investment cases.”

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 89

PE Ratio: 19.92

YTD Decline in Share Price as of June 15: 15.31%

Union Pacific Corporation (NYSE:UNP) is a transportation firm based in Nebraska. On May 12, the firm declared a quarterly dividend of $1.30 per share, an increase of more than 10% from the previous dividend of $1.18. The forward yield was 2.3%. The company is one of the reliable dividend players in the transportation industry with a history stretching back more than three decades. Over the last six years, these payouts have grown consistently.

On May 26, Evercore ISI analyst Jonathan Chappell downgraded Union Pacific Corporation stock to In Line from Outperform with a price target of $245, noting that the “cyclical sector is not immune to slowdowns in economic activity”.

At the end of the first quarter of 2022, 89 hedge funds in the database of Insider Monkey held stakes worth $7 billion in Union Pacific Corporation, up from 59 in the preceding quarter worth $5.6 billion.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Union Pacific Corporation (NYSE:UNP) was one of them. Here is what the fund said:

“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. These consistent growers were complemented by solid contributions from structural holdings including Union Pacific Corporation.”

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