Tue. May 28th, 2024

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.




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Fourteen S&P 500 stocks, including SolarEdge Technologies (SEDG), Enphase Energy (ENPH) and Moderna (MRNA), 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 (AAPL) and Alphabet (GOOGL), 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
(SEDG)
2/15/2023
-76.6%
Information Technology

Enphase Energy
(ENPH)
12/5/2022
-72.2%
Information Technology

Moderna
(MRNA)
12/14/2022
-64.7%
Health Care

Albemarle
(ALB)
11/11/2022
-59.6%
Materials

FMC
(FMC)
12/2/2022
-58.5%
Materials

Insulet
(PODD)
5/5/2023
-58.4%
Health Care

Etsy
(ETSY)
2/3/2023
-58.0%
Consumer Discretionary

Paramount Global
(PARA)
2/2/2023
-57.8%
Communication Services

Dollar General
(DG)
10/28/2022
-54.3%
Consumer Staples

Illumina
(ILMN)
11/11/2022
-54.2%
Health Care

Estée Lauder
(EL)
2/2/2023
-52.6%
Consumer Staples

KeyCorp
(KEY)
2/2/2023
-51.7%
Financials

AES
(AES)
12/13/2022
-50.9%
Utilities

Comerica
(CMA)
2/9/2023
-50.5%
Financials

Sources: S&P Global Market Intelligence, IBD
Follow Matt Krantz on X (Twitter) @mattkrantz

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