In sharp contrast to Wednesday's article on the top five winning stocks of 2021, below, with just two trading days left this year, we highlight the five names that suffered the biggest annual losses in terms of year-to-year date performance.
Surprisingly, four out of five are gearing up for an explosive 2022 as they try to recover from this year's significant declines.
1. Platoon
Jan. 1 Opening Price: $151.72
Dec 29 Closing Price: $34.56
2021 Year-To-Date Performance: -77.2%
Market Capitalization: $11.4 billion
Widely regarded as one of the biggest winners of the COVID outbreak of 2020, Peloton Interactive (NASDAQ:) fell out of favor this year as investors, moving into stocks that benefited from the reopening economy, dumped PTON stocks as well. though they were rising all the time the pandemic.
After making significant gains of 434% last year, Peloton's shares are down nearly 77% in 2021 amid the continued impact of several negative factors plaguing the home exercise equipment specialist, giving it the dubious title. of the worst performing stocks of the year.
Even more alarming, Peloton shares have now pulled more than 80% since hitting a record high of $171.00 on Jan. 14.
PTON shares, which started the year at $151.72, ended Wednesday's session at a new 52-week low of $34.56, giving the New York City-based company a valuation of $11.4 billion.
Sentiment over the out-of-favour name — which sells stationary bicycles and treadmills that allow monthly subscribers to participate in classes remotely via streaming media — took a dent as advances in vaccines prompted states across the country. to make your stay easier. measures at home and social restrictions.
Despite the dramatic, Peloton appears poised to recover in the coming year, given the company's leadership position in the home fitness equipment sector and its remarkable brand recognition.
Indeed, the quantitative models in InvestingPro indicate a 17% increase in Peloton shares from current levels over the next 12 months to a fair value of $40.36/share.
InvestingPro PTON Fair Value Chart
Source: InvestingPro
2. Pinduo duo
Jan. 1 Opening Price: $177.67
Dec 29 Closing Price: $54.01
2021 Year-To-Date Performance: -69.6%
Market Cap: $67.6 Billion
Pinduoduo (NASDAQ:) stocks have had a tumultuous year as investors worry about the damaging effects of continued scrutiny by the ruling Communist Party of China. Chinese regulators have stepped up efforts to rein in tech giants that dominate the country's consumer sector.
Shares of the online marketplace platform – which are up 370% in 2020 amid the shift to online shopping during the COVID pandemic – underperformed the broader market in 2021, falling nearly 70% year-to-date to making them the second worst performing name of the year.
Sentiment about the Shanghai-based e-commerce company turned bearish after Chinese authorities stepped up crackdowns on its powerful technology sector and booming platform economy, including imposing hefty fines and launching numerous antitrust investigations.
PDD shares, now about 75% below its all-time high of $212.30, reached a closing price of $54.01 on Feb. 16 last night. At current levels, Pinduoduo has a market cap of $67.6 billion, making it the third largest e-commerce company in China in terms of annual revenue, behind only Alibaba (NYSE:) and JD.com (NASDAQ:).
Despite the recent sell-off, Pinduoduo could be poised for a comeback year in 2022 as the worst of Beijing's anti-tech regulatory crackdown seems over and it further aligns with Chinese President Xi Jinping's priorities. With a fair value of $64.61 per share, InvestingPro models predict about 20% increase in Pinduoduo stock over the next 12 months.
InvestingPro PDD Fair Value Chart
Source: InvestingPro
3. Teladoc Health
Jan. 1 Opening Price: $199.96
Dec 29 Closing Price: $90.05
2021 Year-To-Date Performance: -54.9%
Market Capitalization: $14.4 billion
As investors increasingly turn away from "stay-at-home" businesses as a result of the easing COVID outbreak, Teladoc Health (NYSE:) stock struggled in 2021 amid dwindling demand for its virtual healthcare platform.
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Teladoc achieved a remarkable profit of 138% in 2020. The company, which uses telephone and video conferencing software to provide on-demand remote medical care, has seen its inventory fall about 55% during a sale so far. -out in companies that rallied during the pandemic.
TDOC shares started trading at $199.96 on Jan. 1 and ended yesterday's session at $90.05. Shares are now close to 70% below their all-time high of $308.00 reached on Feb. 16. At current valuations, the New York-based telemedicine pioneer has a market cap of $14.4 billion.
While the year-round corporate guidelines and membership have failed to impress investors, we believe Teladoc is well positioned to remain the leader in the fast-growing telehealth services market.
Under the InvestingPro model, TDOC stock is now undervalued and could rise nearly 13% from its current level over the next 12 months to its fair value of $101.50 per share.
InvestingPro TDOC Fair Value Chart
Source: InvestingPro
4. Coupa software
Jan. 1 Opening Price: $338.91
Dec 29 Closing Price: $159.23
2021 Year-To-Date Performance: -53.1%
Market Capitalization: $11.9 billion
Another notable winner of the COVID-19 outbreak, shares of Coupa Software (NASDAQ:) fell out of favor this year as advances on the vaccination front prompted states and countries to lift lockdowns and government-imposed stay-at-home measures to relax
The procurement software provider's inventory — which grew 131% in 2020 — fell 54% in 2021 amid concerns that some of the tailwind it enjoyed from COVID-related restrictions will ease as more employees return to the office work.
In addition, concerns about rising inflation and rising bond yields led to a sell-off of high-growth technology stocks, with investors instead plunging into value names, typically companies more sensitive to economic cycles.
COUP shares started the year at $338.91 and climbed to a record high of $377.04 on Feb. 19. It closed at $159.23 on Wednesday, earning the San Mateo, California-based enterprise software company a valuation of $11.9 billion.
With lingering concerns about one in its core businesses, Coupa looks poised to extend its sale into the new year given dwindling demand for its cloud-based business offerings. While analysts are a little more optimistic, the quantitative models in InvestingPro point to an additional 9% drop from current levels to a fair value of $144.79 per share.
InvestingPro COUP Fair Value Chart
Source: InvestingPro
5. Alibaba
Jan. 1 Opening Price: $232.73
Dec 29 Closing Price: $112.09
2021 Year-To-Date Performance: -51.8%
Market Capitalization: $303.8 billion
Alibaba Group (NYSE:) shares plunged in 2021, losing more than half their value during Beijing's long-standing crackdown aimed at strengthening regulations for businesses with consumer-facing platforms and improving data privacy . The stock, which is down about 52% so far, ended Wednesday's session at $112.09, not far from a recent two-year low of $108.70 reached on Dec. 3. Shares are now about 65% below their all-time high of $319.32 hit in October 2020.
At current levels, the Hangzhou, China-based technology giant has a market capitalization of $303.8 billion.
Like Pinduoduo, Alibaba could finally see the stock market bottom in the coming year, making China's most valuable company a prime candidate for a comeback year in 2022.
Despite the antitrust campaign that lasted a year, Alibaba showed itself in its core e-commerce business. Outside of the core retail segment, cloud revenue has increasingly become a key growth driver for Alibaba as it seeks to cement its position as the global leader in cloud computing alongside US rivals such as Amazon (NASDAQ:), Microsoft (NASDAQ:), and Google (NASDAQ:).
Not surprisingly, Alibaba is extremely undervalued according to InvestingPro models, which predict a roughly 73% rise in BABA shares over the next 12 months, pushing stocks closer to their fair value of $193.90.
InvestingPro BABA Fair Value Chart
Source: InvestingPro
