Today’s big drop in the S&P 500 and the Nasdaq 100 has talking heads on financial media already talking about whether now is a good time to buy the dip. It’s hard to blame them, as this year has made heroes out of anyone who uttered “buy the dip” every time stocks lost more than a percent or two in one day.
The more who say it, the easier it is to repeat it as a gospel of some kind. The fact is, the year 2024 has not been all that bullish once you leave out the handful of favorites that have attracted most of the attention. The recent action of the NYSE Advance/Decline index shows that most stocks failed to participate in the recent “new highs” story.
I mentioned it earlier on Forbes.com here and here.
4 Large Cap Stocks Already In Bear Markets.
Alexandria R E Equity.
The stock in mid-November dropped below the August low, rallied and then failed to sustain the brief rally. The 50-day moving average dropped below the 200-day moving average in early November. Today’s 4.28% drop comes on heavy volume.
The real estate investment trust has a market capitalization of $17.11 billion. The stock’s price-earnings ratio is 59. It now trades at a 9% discount to book value. The debt-to-equity ratio is .75. Alexandra Real Estate Equity offers investors a dividend of 5.28%.
Bunge Global.
The farm products company is downtrending since late July and today’s new low establishes the price well below the early November low. The 50-day moving average crossed below the 200-day moving average in late September/early October.
Market cap is $11.05 billion. This year’s earnings are down by 31%. Over the past five years, EPS growth is 55%. The stock trades at just over its book value with a price-earnings ratio of 10. The debt-to-equity ratio is .76. Bunge pays a dividend of 3.41%.
Olin.
The stock earlier in December crossed below the September low (designated by the red-dotted line) and today reached another new low. The 50-day moving average crossed below the 200-day moving average in mid-July.
The chemicals company has a market capitalization of $3.98 billion. Olin trades with a price-earnings ratio of 27 and at 1.93 book. Earnings this year are off by 75% and up over the past five years by 12.91%. The debt-to-equity ratio is 1.56. Olin pays a 2.39% dividend.
Textron.
The aerospace and defense firm on Tuesday took out the late October low and today subtracted another 4.95% from the price. The 50-day moving average crossed below the 200-day moving average in early October, a signal of weakness.
Textron trades with a price-earnings ratio of 16 at 2 times its book value. This year’s earnings are off by 1.40%. Over the past five years, earnings are down by 1.11%. The debt-to-equity ratio is .57. The company pays a .09% dividend. Market cap is $14.12 billion.
More analysis and commentary at johnnavin.substack.com.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
No artificial intelligence was used on the writing of this piece.
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