Related topics: stocks, commodities, Micron Technology, investing strategy, TheStreet
The Standard & Poor's 500 Index ($INX)is up year to date, but not all of its members have fared as well. Among the benchmark's big losers are struggling commodities companies, an unloved chip-maker and also-ran retailers.
SuperValu
Shares of SuperValu (SVU, news), operator of supermarket chains including Acme and Shaw's, were down 29% this year. Like other middle-of-the-road grocery chains, SuperValu is struggling in some of its markets to compete with discount giant Wal-Mart Stores (WMT, news)on price.
The Eden Prairie, Minn., company reported same-store sales declined 5.7% in its most-recent quarter, with food sales falling 10%.
Outlook: SuperValu has problems ranging from labor disputes to competition, but it's likely to remain viable. The company has $203 million in cash and $7.1 billion of debt, though it cut its debt by 13% during the past year. While no analysts rate SuperValu a "buy," the stock is significantly cheaper than shares of other grocers.
Micron Technology
Shares of Micron Technology (MU, news), a maker of memory chips, were down 31% this year amid weak computer sales.
Outlook: Most of the 21 analysts covering Micron are bullish: 11 rate the stock a "buy," nine rate it a "hold" and one has a "sell" rating. A median price target of about $11 suggests that shares in the Boise, Idaho, company could rebound sharply in 2011.
Goodyear Tire & Rubber
Shares of Goodyear Tire and Rubber (GT, news)were down 32% year to date. The Akron, Ohio, company swung to a third-quarter loss of $20 million on rising costs, although revenue grew by 13% and tire sales jumped 6%. Over the past year it has pared its debt by 16%, to $5 billion, but cash on the balance sheet has fallen more than twice as fast, to $1.7 billion.
Outlook: Wall Street analysts have a median price target of $13.54, suggesting that the stock could rise in 2011 as demand for new vehicles continues to recover.
Office Depot
Shares of Office Depot (ODP, news)were down 33% this year. The Boca Raton, Fla., company has struggled to keep pace with larger rival Staples (SPLS, news)as customers tighten their belts. After sustaining losses in eight of the previous nine quarters, Office Depot swung to a profit of $64 million in the third quarter, countering a 4.3% decline in revenues with aggressive cost controls.
Outlook: Analysts are pessimistic about the stock's near-term prospects. Of 18 analysts covering the company, three have "strong buy" ratings on the stock, 13 have "hold" ratings, one has a "moderate sell" rating and one rates it a "strong sell."
Diamond Offshore Drilling
Shares of Diamond Offshore Drilling (DO, news) are down 33% this year. The company was hurt by the federal ban on offshore drilling in the wake of the BP (BP, news)Deepwater Horizon oil spill in the Gulf of Mexico. Anticipating a prolonged slowdown in the Gulf region, management relocated many of the Houston company's rigs to international waters.
Outlook: With oil prices recently rising above $80 a barrel, Diamond foresees solid demand for its services. But Wall Street isn't convinced that the stock will receive a jolt. A median price target of $68.92 is close to where the stock is now trading.
Pultegroup
Shares of Pultegroup (PHM, news), the product of the 2009 merger of Pulte Home and rival homebuilder Centex, were down 38% year to date, reflecting the Bloomfield Hills, Mich., company's struggles in a punishing housing market.
Outlook: Few analysts expect a robust housing market in the near future. And few investors have been hunting for value among downtrodden homebuilder stocks. That could change in 2011 if the job market improves and the pace of foreclosures slows. Analysts' median price target of $9.11 suggests the stock could get a decent pop over the next 12 months.
AK Steel
Shares of AK Steel (AKS, news)were down 38% year to date. Higher iron ore prices are hurting the West Chester, Ohio, steel-maker, which posted a third-quarter loss of $59 million, or 54 cents a share, despite a 51% rise in revenue. Its cash balance fell 76% to $81 million at quarter's end; debt rose in 17% in the period to $503 million.
Outlook: Analysts are skeptical; eight of the 10 who cover the company rate the stock a "hold," and only one rates it a "buy."
