The bull market is celebrating its 10th birthday. Here are the 5 worst-performing stocks during the bull run.

Advertisement
The bull market is celebrating its 10th birthday. Here are the 5 worst-performing stocks during the bull run.

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., February 8, 2018. REUTERS/Brendan McDermid

Thomson Reuters

Traders work on the floor of the NYSE in New York

Advertisement
  • On March 9, 2009, the S&P 500 marked its low point for the worst bear market in stocks since the Great Depression.
  • Since then, the benchmark index has more than quadrupled in value.
  • The bull market celebrates its 10th birthday on Saturday.
  • Five companies lost nearly all their values during the bull market, according to the digital trading platform TradeStation.

Saturday will mark the 10th anniversary of the longest bull market in history.

On March 9, 2009, the S&P 500 closed at 676.53, marking the low point for the worst bear market in stocks since the Great Depression. Since then, the benchmark index has more than quadrupled in value.

The market was extremely oversold a decade ago as the financial crisis created a rare level of panic, David Russell, vice president at TradeStation, the fifth-largest digital-trading platform in the US told Business Insider.

"We haven't had any real problem since then," he said, adding that Greece's default on an IMF loan payment, the UK's Brexit vote, and Federal Reserve's interest-rate hikes didn't impact strong economic fundamentals in the US.

Advertisement

Despite a decade of favorable economic conditions, some companies including the retailer JCPenney, have still been struggling and have seen their entire market value almost completely wiped out. These companies usually have an old-fashioned business model and a high level of debt, according to Russell.

"The society's shopping habits changed but they didn't keep up," he said. "When those businesses started to shrink, its leverage worked in reverse."

Here are the five-biggest losers during the stock market's record-setting bull market based on data from TradeStation. The list is in descending order of companies' 10-year performance through March 5:

{{}}

Avon Products

Avon Products

Ticker: AVP

Sector: Consumer defensive

10-year performance: -85%

TradeStation comment:

This consumer name has gone wrong, struggled with corner office issues, and market share losses– even as other companies like Estee Lauder (EL) kept growing, Russell said.

Source: TradeStation

Denbury Resources

Denbury Resources

Ticker: DNR

Sector: Energy

10-year performance: -86%

TradeStation comment:

"The ticker says it all," Russell noted. "Declining oil and gas production, years of weak energy prices and plenty of debt. What’s not to love!"

Source: TradeStation

Advertisement

JCPenney

JCPenney

Ticker: JCP

Sector: Consumer cyclical

10-year performance: -88%

TradeStation comment:

"The once-thriving department store operator flip-flopped from one mishap to another: Martha Stewart, Everyday Prices, Shops, appliances, poor management," TradeStation said.

"Same-store sales languished, shoppers shrugged and competitors kept closing in. Now under the leadership of new CEO Jill Soltau it’s finally trying to stage a comeback."

Source: TradeStation

Eldorado Gold

Eldorado Gold

Ticker: EGO

Sector: Basic materials

10-year performance: -90%

TradeStation comment:

"Gold is in the midst of another 'lost decade,'" Russell said. "Falling production and regulatory headaches have also weighed on this Canadian company."

Source: TradeStation

Advertisement

Frontier Communications

Frontier Communications

Ticker: FTR

Sector: Communication services

10-year performance: -97%

TradeStation comment:

"This old-school telecom has struggled to keep its head above water as traditional wireline customers disappeared," Russell noted. "That, along with a pile of debt, made it a favorite for short sellers over the years."

Source: TradeStation