Investors fearing a brutal stock market crash are still waiting with dread. But it's already arrived for a group of battered S&P 500 stocks.
Fourteen S&P 500 stocks, including SolarEdge Technologies, Enphase Energy and Moderna, have crashed 50% or more from their highest levels in 52 weeks, according to an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
Such massive losses in individual stocks shows much of the market's troubles since late July are largely masked by the indexes. The S&P 500 is down just 8.8% from its 52-week high. And the Nasdaq 100 is even closer to a 10% correction as it's down 9.2% from its highest point in a year.
Stocks are suffering as higher inflation eats into returns and interest rates lure away investors looking for a safe return. "The stock market isn't ready to rally until bond yields are sharply lower, which probably won't happen until we see inflation a lot closer to the Fed's target," said Edward Moya of Oanda.
Waiting For A S&P 500 Correction Or Worse
Investors' nerves are already on high alert.
Many market players consider October a "jinx month" as it's been when many historic stock market crashes have occurred. Plus, the S&P 500 is struggling since topping this year in late July. And some pointed out similarities between October 1987, the month of a major crash, with 2023 so far.
Meanwhile, many of the Magnificent Seven stocks that powered the S&P 500 all year are fading. Apple and Alphabet, for instance, are down 14% and 11% from their highs this year, putting them both in correction territory.
But there's far worse in the S&P 500.
Alternative Energy Stocks Hit Hard
Two of the leading solar plays in the S&P 500 are suffering the most.
SolarEdge, a maker of inverters for solar power, has seen shares collapse more than 70% from their 52-week high notched on Feb. 15 of this year. Shares just this year are off 64.4%.
But the sell-off isn't driven by any foreseeable business drops. Analysts think the company's profit will rise nearly 17% this year to $6.95 a share on an adjusted basis. And for 2024, analysts are calling for nearly 3% more growth in profit.
Along with the theme of falling solar stocks, Enphase Energy's shares are down more than 72% from their 52-week high on Dec. 5. And like SolarEdge, the company is still growing. Analysts think adjusted profit will rise more than 6% in 2023 and another 25% in 2024.
Not Just Solar Is Dimming
Outside of the solar industry, you'll find plenty of other S&P 500 stocks in a world of hurt.
Vaccine maker Moderna has struggled since worries about Covid-19 subsided. Shares are down more than 64% from their 52-week high on Dec. 14 of last year. But this drop is very easy to understand. The company is expected to lose $4.24 a share this year, down from a profit of $20.12 a share last year.
It's unclear if investors nerves about the S&P 500 will ease as more companies report third-quarter results. But judging on some of the stocks getting absolutely destroyed, some investors aren't taking any chances.
Stock Market Crash Here Now
S&P 500 stocks down 50% or more from 52-week highs
| Company | Symbol | 52 week high date | % ch. from high | Sector |
|---|---|---|---|---|
| SolarEdge Technologies | 2/15/2023 | -76.6% | Information Technology | |
| Enphase Energy | 12/5/2022 | -72.2% | Information Technology | |
| Moderna | 12/14/2022 | -64.7% | Health Care | |
| Albemarle | 11/11/2022 | -59.6% | Materials | |
| FMC | 12/2/2022 | -58.5% | Materials | |
| Insulet | 5/5/2023 | -58.4% | Health Care | |
| Etsy | 2/3/2023 | -58.0% | Consumer Discretionary | |
| Paramount Global | 2/2/2023 | -57.8% | Communication Services | |
| Dollar General | 10/28/2022 | -54.3% | Consumer Staples | |
| Illumina | 11/11/2022 | -54.2% | Health Care | |
| Estée Lauder | 2/2/2023 | -52.6% | Consumer Staples | |
| KeyCorp | 2/2/2023 | -51.7% | Financials | |
| AES | 12/13/2022 | -50.9% | Utilities | |
| Comerica | 2/9/2023 | -50.5% | Financials |
