Text size
We know the feeling. (Photo by Scott Heins/Getty Images)
Getty Images
Barron’s prides itself on its stock picking. Whether we’re on the hunt for out-of-favor ideas or outperformers that may have more room to run, we look for what others have missed about a company that could drive its shares higher. We don’t mind bragging when we’re right, but we’re far from perfect–and we’ll gladly admit when our calls go wrong. So far this year, our picks have gained 7% on average, outperforming their benchmarks’ 4.4% average gain (we compare the stocks to the
S&P 500,
S&P 400 Mid Cap Index,
and the small-cap
Russell 2000
). But we’ve also had a number of stinkers.
Here are the five stock picks of 2021 that have lost the most since they were selected:
Guardant Health
(GH), -33%;
Exact Sciences
(EXAS), -26%: We group these two together because they came from the same story, an April 9 article about the quest for a blood test for cancer. It’s important stuff, and when the discovery is finally made, it will change our lives for the better. The stocks mentioned in the story, however, have done quite poorly. Guardant asked the FDA to revoke its emergency use application for Guardant-19 after the close on Monday, causing the stock to tumble 8.2% on Tuesday. Exact, meanwhile, offered disappointing guidance back in May, causing its stock to tumble.
First Quantum Minerals
(FQVLF), -24%: Andrew Bary’s February commodity cover was perfectly timed. This pick of a copper miner wasn’t. The story argued that the green revolution would require a lot of copper, a thesis that likely holds true now. Unfortunately, copper had been on a massive run and peaked at around the same time this story ran on May 7. If copper rallies, so will First Quantum.
PetIQ
(PETQ), -24%: Once again, timing was a big problem. The pet economy was a big lockdown winner as everyone and their neighbor seemingly bought a dog. Yet, by the time this article on how to play pet care ran, the theme was looking a little shaggy, just like those pandemic puppies. PetIQ peaked about a week after this story ran on April 16, and it has been downhill ever since. The latest drop occurred on Aug. 5 after the company reported weaker-than-expected earnings and sales and announced the departure of its CFO.
Coinbase Global
(COIN), -21%: Back in April, Bitcoin was making a run to $60,000 and Coinbase was heading for an IPO. Whether the former was driving the latter or vice versa was unclear, but both peaked at the same time, and Coinbase’s IPO marked its high-water mark. The article acknowledged Coinbase’s nosebleed valuation, but recommended ignoring it, calling the company “the real deal.” Maybe. But Coinbase still has a long way to go just to make up these losses.
Write to Ben Levisohn at ben.levisohn@barrons.com