10 Worst Stocks So Far in 2012

The worst Dow Jones and S&P 500 stocks at the midway point

      View All  
10 Worst Stocks So Far in 2012

#4 Worst S&P Stock: Allegheny Technologies

AlleghenyTechnologies185 10 Worst Stocks So Far in 2012Sector: Materials
YTD:
-39%

Allegheny Technologies Incorporated (NYSE:ATI) is a small-cap specialty metals producer worth about $3 billion. The company’s products include titanium and specialty steel alloys, among other things, used in a wide array of high-tech capacities that include jet engines.

It goes without saying that the recession wasn’t kind to materials stocks like Allegheny. Demand fell off a cliff as sales of durable goods and machinery dried up. There was a resurgence in shares across 2010 and 2011 on hopes of a recovery, but recent troubles in Europe and fears of a double-dip at home have battered this stock.

Fundamentally, ATI isn’t all that bad these days. It has seen nine straight quarters of year-over-year revenue increases and is tracking a nearly 50% jump in earnings per share for fiscal 2012 over fiscal 2011.

But materials stocks just can’t catch a break right now, whether they be big players like Alcoa (NYSE:AA) or smaller fish like ATI. These companies are cyclical and driven by broad demand trends, and investors just aren’t confident that demand will be there amid global economic troubles.


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/10-worst-stocks-so-far-in-2012/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.