The S&P 500 and Dow Jones have fought their way back into the black on the year (at least as of this writing). Favorable corporate earnings from some big name stocks helped lead the charge, and gave way to new optimism for many stocks.
But don’t think this means that the market is going to be smooth sailing from here on out. The bottom line is that a number of companies are still struggling, after just posting poor earnings or issuing warning signs as they approach their earnings date or as investors digest unfortunate earnings reports.
To keep you out of the worst stocks, here are eight big-name blue chips to sell now.
Bank of America Corp. (BAC)
Sector: Diversified Financial Services
YTD Performance: -7.5%
Bank of America Corporation (NYSE: BAC) is a bank holding company, and a financial holding company well known to consumer and investors alike. Even though BAC has managed to stay ahead of the broader markets for most of 2010, sharp drops in shares in recent weeks have caused serious woes for investors. Recent trouble has been sparked by poor BAC earnings in mid-July, featuring lower profit and revenue for the quarter.
BP PLC (BP)
Sector: Oil & Gas
YTD Performance: -28.8%
BP PLC ADS (NYSE: BP) is one company that hardly needs an introduction thanks to the recent media frenzy surrounding its disaster in the Gulf of Mexico. As can be expected from such a devastating event, shares for this once titan-of-industry have already fallen almost -30% so far this year. Though the well is capped and reports place the amount of oil outstanding in the Gulf at only about a quarter of the initial spill, the specter of open liability as legislative backlash looms large.
Exxon Mobil (XOM)
Sector: Oil & Gas
YTD Performance: -8.3%
Exxon Mobil (NYSE: XOM) is the largest oil and gas company in the world. Shares have been in a tailspin this year, faring much worse than the market, and Exxon has missed earnings estimates in three of the last five quarterly reports. Until crude oil demand ramps up and the economy gets going at full steam, XOM should continue to experience a headwind.
Goldman Sachs Group (GS)
Sector: Capital Markets
YTD Performance: -7.9%
The Goldman Sachs Group, Inc. (NYSE: GS) is a bank holding and a global investment banking, securities and investment management company. Combined with the controversies surrounding the company and its dealings is the fact that GS stock had its bottom fall out in April. The company’s shares are down around -8% total since January, in part due to the threat of charges from the SEC (which have since been resolved for a cool $550 million) and also due to a whopping -60% earnings miss in the company’s latest report.
JPMorgan Chase & Co. (JPM)
Sector: Diversified Financial Services
YTD Performance: -4.2%
JPMorgan Chase & Co. (NYSE: JPM) is a financial holding company with Chase Bank USA as the firm’s credit card-issuing bank. JPMorgan is hoping to see its shares rebound because the company has underperformed the broader markets this year at with a slight decline, with most of the losses occurring recently.
Petrobras Petroleo Brasileiro (PBR)
Sector: Oil & Gas
YTD Performance: -20.0%
Petroleo Brasileiro S.A. (NYSE: PBR) is an integrated oil and gas company that deals in oil and gas exploration, development and production in Brazil. This year has been unkind to PBR shareholders who have witnessed their investment drop significantly in value since the start of 2010.
Telefonica (TEF)
Sector: Diversified Telecommunications Services
YTD Performance: -15.2%
Telefonica S.A. (NYSE: TEF) together with its subsidiaries operates in the telecommunications, media and contact center industries. Like so many other blue chips, its profits and returns are both down from last year for TEF. Until debt trouble in the euro zone clears up, this Spanish-based company will continue to suffer a headwind.
Toyota Motor Corp. (TM)
Sector: Automobiles
YTD Performance: -14.2%
Toyota Motor Corp. (TM) is a Japan-based company mainly engaged in the automobile and financial business. With the company currently under investigation for possible defects in the steering rods of its vehicles, it seems like the hits keep on coming for TM and its shareholders. The automaker is reeling from -14% returns this year despite just posting reasonably strong sales for July. The bottom line is that as long as consumer spending is weak, Toyota will suffer.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.
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