Oggonomics is welcoming an expected Federal Reserve rate cut this week. The main question, outside of political gaming, is whether Jerome Powell will fulfill the market expectations of three total cuts left in 2025. The stock market is at all-time highs, so any disappointment could have a broad-range wave of profit taking.
A screen at Finviz has shown the 10 worst performing stocks year-to-date within the S&P 500. If these stocks are down this much when interest rates could have finally been lowered, maybe the market will warm to them. Maybe. But there are some issues with each of the top 10 losers.
It turns out that some are facing stock-specific woes rather than broad-based weakness only from the economy as a whole. While the screen was the worst YTD, we also looked at the gain/loss seen in the last month showing some positive performers in that case.
The Trade Desk (NASDAQ: TTD) -61.80% YTD; -14% last month… Will a 0.25% rate cut help the leader in online advertising outside of you know who? Will it keep AI from replacing search-based ads too?
Lululemon Athletica (NASDAQ: LULU) -57.55% YTD; -18% last month… Lululemon sales were not atrocious, but its guidance and the effects of tariffs was… But now it is being valued at less than 12-times forward earnings when sales growth is expected to have slowed to only 3.5% this year and just 5% next year.
Gartner, Inc. (NYSE: IT) -48.22% YTD; +5% last month… Will a 0.25% rate cut help a struggling IT research and advisory company when AI is taking over?
Centene (NYSE: CNC) – 47.51% YTD; +11.6% last month… Will a rate cut help a company which runs programs and services to government sponsored healthcare programs?
Enphase (NASDAQ: ENPH) – 43.23% YTD; +12% last month… will a rate cut help solar inverters when the new U.S. energy policy doesn’t care for anything tied to solar (and subsidies)?
Deckers (NYSE: DECK) -41.56% YTD; +15% last month… Maybe the anticipation of rate cuts is already helping a footwear and apparel maker with brands like UGG, HOKA and Teva… if tariff pressure doesn’t keep mounting. Sales growth is expected to be 10% this year and 8% next year — but with earnings per share stuck flat — valued at 18 times expected earnings too.
Moderna (NASDAQ: MRNA) -40.26% YTD; -11% last month… Will a 0.25% rate cut help rekindle vaccine demand or shield Covid vaccine pushbacks?
Molina Health (NYSE: MOH) -39.37% YTD; +5% last month… Will a 0.25% rate cut help health care services in Medicaid, Medicare, Marketplace, and other health insurance services?
Constellation Brands (NYSE: STZ) -39% YTD; -20% last month… Will a 0.25% rate cut help rekindle pro-drinking trends outside and inside of the home in America?
Dow, Inc. (NYSE: DOW) -39.00% YTD; -3% last month. A rate cut should be beneficial for a leader “materials sciences” like packaging, infrastructure, mobility and consumer applications, but it may have ongoing pressures from tariffs and other choppiness in key markets.
