Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
MATT KRANTZ

The Dreaded Market Crash Is Already Here For 14 Stocks

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
Sources: S&P Global Market Intelligence, IBD
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.