03/29/2017

The Best & Worst Stocks of 2016

With 2016 winding down, we will take a moment to highlight which companies have been the best and worst performers in 2016. After starting the year down 10% after a little over one month, the S&P 500 index has delivered just over 10% YTD highlighting just how volatile the markets have been this year. Today, we would like to identify which companies have been the biggest drivers of the indexes returns and which have been the biggest drag.

In the tables below we have highlighted the top 25 and bottom 25 performing companies in the index YTD. We will use AFG Investment Grade methodology and Valuation metrics to identify a few companies from each list that we find attractive going forward as well as highlight a few companies that we consider to be potential torpedo stocks heading in to 2017.

The chart below displays the 25 biggest gainers of 2016 YTD that have led the index in returns. We have highlighted two companies from this list that we believe still look attractive and have some more room to run which are Micron Technology, Inc. (NASDAQ:MU) and Cummins Inc. (NYSE:CMI). We have also highlighted two that we think will have the most trouble keeping this pace up in 2017, which are Halliburton Company (NYSE:HAL) Southwestern Energy Company (NYSE:SWN).

2016 Top Performers – S&P 500

2016-top-performers

The next chart shows us the S&P 500’s biggest losers of 2016 YTD. We have highlighted from this list two companies that we like as investment opportunities that look most likely to turn things around in 2017, which are Mylan NV (NASDAQ:MYL) and Express Scripts Holding Company (NASDAQ:ESRX). Two companies that we think will continue to struggle as they have poor Investment Grades and look overvalued according to AFG’s valuation model are Under Armour Inc. (NYSE:UAA) Coty Inc. (NYSE:COTY).

2016 Bottom Performers – S&P 500

2016-bottom-performers