Macy’s Inc. (NYSE: M) may have the pandemic to blame, just like so many other retailers, but its woes, at about $6.00 a share, are worse than the 65% year-to-date drop would imply. Macy’s has been the poster child of being on the wrong side of the retail apocalypse for years, with no growth and pre-pandemic sales still lower than they were three years earlier. Macy’s was close to a $17 stock at the start of 2020, but that is down from a peak of almost $70 back in 2015. New management, permanent store closures, temporary store closures, negative sales trends and even a weak snapback for calendar year 2021 all beg the question of whether this anchor tenant for retail shopping malls, with what is now less than a $2 billion market cap, even needs to exist for most Americans a decade from now.
Molson Coors Beverage Co. (NYSE: TAP) may have been up on Wednesday after a positive valuation recognition by an analyst upgrade, but this beer maker just has not seen a recovery in its stock like other alcoholic beverage companies (Anheuser-Busch InBev, Boston Beer, Constellation Brands and so on). With a market cap of nearly $8 billion, the stock is barely above the plunge-depth lows of March, due to very recent buying. The stock trades at only about 10 times expected earnings, and that is based on even lower earnings than in 2019, without a full earnings recovery to pre-pandemic levels even expected in 2021.
Peabody Energy Corp. (NYSE: BTU) may have a low $200 million market cap, but that’s what happens when a stock falls 80% year to date and even worse compared to the past. Being in the coal business is no fun place, and the future looks bleak for the industry. It even seems fair to ask how this company will be able to operate in the future, and it appears that there are no Buy ratings from analysts at all. Maybe this is a story where you go back in time to when stockbrokers would pitch stocks to investors: “So, there is this great coal company you should consider…”
Revlon Inc. (NYSE: REV) currently has a $340 million market cap, but it is down over 70% from its January highs. As the work-from-home and staying-in trends have remained for a large portion of the country (and the world), it is hard to imagine that makeup sales are happening at all. Revlon’s stock is under the March selling lows. This is just another casualty of COVID-19, and it is in great need of a vaccine or a cure like others.
Spirit AeroSystems Holdings Inc. (NYSE: SPR) is not at fault for its woes. With Boeing as the main customer and with airline manufacturing now on hold until the airlines can get back on track, it is a hard time to be in the business of manufacturing fuselage, propulsion and wing systems. Despite the $18.85 per share being up from a low under $14, this stock effectively has traded sideways after losing half of its value since June. To make matters worse, Spirit’s stock is down about 75% year to date.
Wells Fargo & Co. (NYSE: WFC) remains the bank that investors want to avoid. Its $24.75 share price is barely up 10% from its 52-week low, and the stock is down 55% so far in 2020. After a major dividend cut and continued scrutiny, even the great Warren Buffett has thrown in the towel on what was once one of the two safest and most prestigious banks in America. Scandals don’t come without costs, and questions remain about how it will recover as well as the other major banks. With profitability not even assured in 2020, the Refinitiv consensus of $2.01 in earnings per share in 2021 is still just half of the $4.05 per share from 2019.