25 Stocks Down 20% That Could Be Steals

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Weyerhaeuser Co. (NYSE: WY) was last seen trading at $26.43, down over 31% from its 52-week high of $39.39. Its current market cap is $20 billion, and its new share price comes with a dividend yield of 5.1%. Weyerhaeuser may not be exciting, and its growth days may be hampered with slowing in housing and industry. Still, this company owns and leases so much timberland it could petition the United States to become the 51st state.

PVH Corp. (NYSE: PVH) was last seen trading at $118.39, down over 30% from its 52-week high of $169.22. Its current market cap is $9 billion, and its new share price comes with a dividend yield of 0.1%. The company has been a powerhouse in fashion and apparel, but it’s an obvious trade war victim as tariffs will pressure its margins. Still, PVH is valued at only about 12 times a blended 2018 and 2019 earnings. Maybe it should change to a larger dividend policy if investors do not want to pay up for growth from a very diversified line of fashion brands.

Netflix Inc. (NASDAQ: NFLX) was last seen trading at $284.84, down over 33% from its 52-week high of $423.21. Its current market cap is $124 billion. Netflix was looking like the poster-child of a strong earnings season reporter, but the selling pressure has been so strong that not even Mr. Hastings and the mighty Netflix have been able to escape the black hole’s gravity. Will new competition from AT&T, Disney and others kill its growth in 2019 and beyond? Will its endless international growth opportunity begin to diminish? Its bullish analysts don’t think so — just don’t try to figure out what is an acceptable P/E ratio here.

Kraft Heinz Co. (NASDAQ: KHC) was last seen trading at $55.52, down over 33% from its 52-week high of $82.48. Its current market cap is $68 billion, and its new share price comes with a dividend yield of 4.5%. The problems of Kraft-Heinz seem endless, and the food business is changing rapidly. This company has yet to find any ways to entice new investors, and Warren Buffett probably isn’t even that happy he’s knee-deep in ketchup and cheese here. How the company can grow remains elusive. Does 15 times earnings make it a value stock or a value trap?

Caterpillar Inc. (NYSE: CAT) was last seen trading at $113.98, down over 34% from its 52-week high of $173.24. Its current market cap is $68 billion, and its new share price comes with a dividend yield of 3.0%. The maker of giant equipment has gone from a darling to a scoundrel rather harshly in 2018. An obvious trade war loser, or so the thought goes, is still valued at just 11 times expected 2019 earnings — if it lives up to lowered expectations.

Facebook Inc. (NASDAQ: FB) was last seen trading at $142.09, down over 35% from its 52-week high of $218.62. Its current market cap is $410 billion. Being the social media leader hasn’t helped the company fight fake news, tampering and dwindling use among younger Americans. Will Facebook be regulated into the dirt? Will advertisers flee? That remains to be seen here, and the market cap destruction has been massive in 2018.

Nvidia Corp. (NASDAQ: NVDA) was last seen trading at $185.62, down over 37% from its 52-week high of $292.76. Its current market cap is $113 billion, and its new share price comes with a dividend yield of 0.3%. Nvidia has suffered with other chip names, and no one should expect that its old crypto-mining franchise was permanent. Still, Nvidia is the leader in graphics and its wins are going to come from artificial intelligence, self-driving cars and probably every next-generation idea that requires high graphics and computing power.

Electronic Arts Inc. (NASDAQ: EA) was last seen trading at $91.19, down over 40% from its 52-week high of $151.26. Its current market cap is $28 billion. The video game business is great on the way up, but any game delays and any slowing in consumer spending on games can sure hurt here. EA is down worse than most gaming peers in 2018. It’s valued at about 18 times blended 2018 and 2019 earnings estimates, if it lives up to its growth expectations next year.

United Rentals Inc. (NYSE: URI) was last seen trading at $109.29, down over 43% from its 52-week high of $190.74. Its current market cap is $9 billion. United Rentals was one of the key beneficiaries of the expected infrastructure build-out and was considered one of the primary “Trump winners” in 2017. That said, after a series of acquisitions, United Rentals is having a hard time even finding investors who want to rent rather than buy its shares.

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