25 Worst-Performing Stocks of the Past Decade
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Underdogs of the S&P 500
If you bought Ford stock 10 years ago, you'd have made at least a little money, right? Wrong. If you put $1,000 into that stock, you'd only have $150 left today. Xerox has been a big winner long-term, right? Nope. In the past 10 years it is down 73%. You'd only have $270 left of your 1998 investment of $1,000. These are No. 8 and 16 on the Schaeffer's Investment Research list of the top 25 worst-performing S&P 500 stocks based on their returns from June 30, 1998 through June 30, 2008. Click through our gallery as we count down from No. 25 to No. 1.
First Up: Worst Stock No. 25Related Links:
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Fannie Mae
No. 25: Fannie Mae
Current Stock Quote: FNM
Price on 6/30/98: $60.75
Price on 6/30/08: $19.51
10-Year Return: -68%
In a Nutshell: This mortgage buyer's problems started long before anyone heard of subprime. But it was the subprime mess that left the government no choice but to finally "rescue" Fannie and her brother Freddie. FNM is now double its 52-week low of $6.68, set about two weeks ago.
· More on Fannie Mae's Stock
Next: Worst Stock No. 24Related Links:
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Mark Duncan, AP
No. 24: KeyCorp
Current Stock Quote: KEY
Price on 6/30/98: $35.62
Price on 6/30/08: $10.98
10-Year Return: -69%
In a Nutshell: This financial services company, parent of KeyBank, experienced its massive decline in market value only since February 2007. Prior to that it enjoyed a long and steady climb. These days KEY trades near $12, recovering from the $7.93 low set July 15 after it reported a narrower loss than Wall Street expected.
· More on KeyCorp's Stock
Next: Worst Stock No. 23Related Links:
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AP
No. 23: Gannett Co.
Current Stock Quote: GCI
Price on 6/30/98: $71.06
Price on 6/30/08: $21.67
10-Year Return: -70%
In a Nutshell: As readers began defecting from traditional print media toward Internet-based alternatives, Gannett began its long slide despite peaking in 2004. Gannett's performance since then can best be described as "prolonged death throes." GCI shares have not stopped on their way down, trading around $18.25 these days.
· More on Gannett Co.'s Stock
Next: Worst Stock No. 22Related Links:
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No. 22: Interpublic Group
Current Stock Quote: IPG
Price on 6/30/98: $30.34
Price on 6/30/08: $8.60
10-Year Return: -72%
In a Nutshell: Once the "brand steward" for Coca-Cola Classic, the economic slowdown in the early 2000s and the ensuing accounting fiasco hit this Madison Avenue icon hard. IPG shares continue to decline and trade at $7.80 these days.
· More on Interpublic Group's Stock
Next: Worst Stock No. 21Related Links:
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Danny Johnston, AP
No. 21: Dillard's Inc.
Current Stock Quote: DDS
Price on 6/30/98: $41.43
Price on 6/30/08: $11.57
10-Year Return: -72%
In a Nutshell: After slowly recovering from the last recession and its stock peaking in May 2007, this mid-market department store once again was recently hurt by yet another economic slowdown. With discretionary income shrinking and consumer spending declining, it is no wonder DDS has taken a hit.
· More on Dillard's Stock
Next: Worst Stock No. 20Related Links:
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Jeff Glidden, AP
No. 20: Goodyear Tire & Rubber
Current Stock Quote: GT
Price on 6/30/98: $64.43
Price on 6/30/08: $17.83
10-Year Return: -72%
In a Nutshell: Problems just keep compounding for this once-member of the Dow Jones Industrial Average. From questionable acquisitions to improper accounting practices, the company has recently also been hurt by the weakness in the auto market on the one hand and rising costs on the other.
· More on Goodyear's Stock
Next: Worst Stock No. 19Related Links:
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LM Otero, AP
No. 19: Tenet Healthcare
Current Stock Quote: THC
Price on 6/30/98: $20.83
Price on 6/30/08: $5.56
10-Year Return: -73%
In a Nutshell: After Tenet was charged with Medicare fraud in 2002 the stock price took a dive from which it never recovered. The Justice Department then slapped this healthcare services company with a $323-million lawsuit in 2003, and the stock price has just kept dropping since.
· More on Tenet Healthcare's Stock
Next: Worst Stock No. 18Related Links:
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Xerox
No. 18: Xerox Corporation
Current Stock Quote: XRX
Price on 6/30/98: $50.81
Price on 6/30/08: $13.56
10-Year Return: -73%
In a Nutshell: Paper? Isn't that passe? Indeed, Xerox shares endured severe sell-offs thanks to an earnings losing streak due to fundamental woes. However, signs of growth are peeking through the past few quarters as the company wants to prove it is no longer the outdated copier company of yesterday.
· More on Xerox's Stock
Next: Worst Stock No. 17Related Links:
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No. 17: Wachovia Corporation
Current Stock Quote: WB
Price on 6/30/98: $58.25
Price on 6/30/08: $15.53
10-Year Return: -73%
In a Nutshell: Until the subprime mess hit most financials, Wachovia even looked promising. But in 2007, a ruthless credit crunch forced Wachovia to the Federal Reserve's discount window along with its cash-strapped peers.
· More on Wachovia's Stock
Next: Worst Stock No. 16Related Links:
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Mark Duncan, AP
No. 16: Fifth Third Bancorp
Current Stock Quote: FITB
Price on 6/30/98: $42.00
Price on 6/30/08: $10.18
10-Year Return: -76%
In a Nutshell: Fifth Third can't just blame the recent turmoil in financial markets for its trouble. The stock of this diversified financial services company started its decline long before, in 2002. An SEC investigation, a Justice Department lawsuit and shrinking deposits are just some of its woes. FITB recently traded around $13.80.
· More on Fifth Third Bancorp's Stock
Next: Worst Stock No. 15Related Links:
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First Horizon
No. 15: First Horizon
Current Stock Quote: FHN
Price on 6/30/98: $31.56
Price on 6/30/08: $7.43
10-Year Return: -76%
In a Nutshell: This regional bank first revealed mortgage-related weakness in August 2006. Sharp losses caused sharp selloffs and no one seems to know what lies ahead for the parent of First Tennessee Bank.
· More on First Horizon's Stock
Next: Worst Stock No. 14Related Links:
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No. 14: Huntington Bancshares Incorporated
Current Stock Quote: HBAN
Price on 6/30/98: $25.16
Price on 6/30/08: $5.77
10-Year Return: -77%
In a Nutshell: Huntington started to feel the pain of subprime-gone-wrong as early as July 2007. Since then, HBAN stock shed 81%. While its own outlook is still cautious, Huntington has shown signs of recovery recently and its stock has traded around $7.
· More on Huntington's Stock
Next: Worst Stock No. 13Related Links:
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Jack Dempsey, AP
No. 13: Qwest Communications International
Current Stock Quote: Q
Price on 6/30/98: $17.43
Price on 6/30/08: $3.93
10-Year Return: -77%
In a Nutshell: What could go wrong with a communication company? Well, this provider of voice, data, Internet and video services suffered from unfortunate acquisitions and partnerships, even with Enron, which caused the stock's decline starting back in 2000. It hasn't recovered since.
· More on Qwest's Stock
Next: Worst Stock No. 12Related Links:
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Bill Pugliano, Getty Images
No. 12: General Motors
Current Stock Quote: GM
Price on 6/30/98: $55.26
Price on 6/30/08: $11.50
10-Year Return: -79%
In a Nutshell: The once "world's largest automaker" finds its title recently challenged by Japanese carmaker Toyota. After peaking in 2000, the stock has been on a long, steady decline. Recently some analysts even questioned its ability to remain solvent.
· More on General Motors' Stock
Next: Worst Stock No. 11Related Links:
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Eastman Kodak Company
No. 11: Eastman Kodak
Current Stock Quote: EK
Price on 6/30/98: $73.06
Price on 6/30/08: $14.43
10-Year Return: -80%
In a Nutshell: Kodak has struggled as the world of photography changed from print to digital. Although news of a $1-billion stock buyback program boosted the stock in June, its long decline is not expected to stop unless a fundamental change occurs.
· More on Eastman Kodak's Stock
Next: Worst Stock No. 10Related Links:
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JDS Uniphase Corporation
No. 10: JDS Uniphase
Current Stock Quote: JDSU
Price on 6/30/98: $62.78
Price on 6/30/08: $11.36
10-Year Return: -82%
In a Nutshell: As a major supplier of components for fiber-optic networks, JDS Uniphase could serve as the poster child for the collapse of telecom. The stock peaked in March 2000, then collapsed, never to return to its glory days.
· More on JDS Uniphase's Stock
Next: Worst Stock No. 9Related Links:
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Marianna Day Massey, ZUMA Press
No. 9: Washington Mutual
Current Stock Quote: WM
Price on 6/30/98: $28.95
Price on 6/30/08: $4.93
10-Year Return: -83%
In a Nutshell: The endearingly nicknamed bank, WaMu, was doing just fine until the subprime mess, credit crunch and economic woes hit it in the spring of 2007. While several banks caught a break in the recent earnings period, Washington Mutual wasn't one of them. The stock is trading at $3.70 today.
· More on Washington Mutual's Stock
Next: Worst Stock No. 8Related Links:
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Danny Johnston, AP
No. 8: Ford Motor Company
Current Stock Quote: F
Price on 6/30/98: $32.32
Price on 6/30/08: $4.81
10-Year Return: -85%
In a Nutshell: The once second-largest automaker was pushed to third place by Toyota and shared its American rival's fate. While Ford and GM's problems started long ago, the recent increase in gas prices and shifting consumer preferences hasn't helped. Its only hope is adapting quickly to consumer demands.
· More on Ford Motor's Stock
Next: Worst Stock No. 7Related Links:
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Tom Mihalek, AP
No. 7: Unisys Corporation
Current Stock Quote: UIS
Price on 6/30/98: $28.25
Price on 6/30/08: $3.95
10-Year Return: -86%
In a Nutshell: The shares of this IT solution services company peaked in 1999, but have been mostly declining since. Once the company started reporting lackluster earnings, it seemed it never recovered. With no fundamental change, the pattern of lackluster earnings continues and the stock suffers. UIS trades around $3.50.
· More on Unisys's Stock
Next: Worst Stock No. 6Related Links:
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Mark Duncan, AP
No. 6: National City Corp.
Current Stock Quote: NCC
Price on 6/30/98: $35.50
Price on 6/30/08: $4.77
10-Year Return: -87%
In a Nutshell: National City is yet another regional bank on this list of worst performers -- another bank hit by the subprime mortgage mess and the ensuing credit crunch following. Too bad, since NCC previously had a nice long-term uptrend. Recently, though, it got a boost from the sector-wide bounce, despite some remaining issues.
· More on National City's Stock
Next: Worst Stock No. 5Related Links:
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No. 5: Tellabs Inc.
Current Stock Quote: TLAB
Price on 6/30/98: $35.81
Price on 6/30/08: $4.65
10-Year Return: -87%
In a Nutshell: Add Tellabs to the list of casualties from the Great Telecom Bust of the new millennium. Since then, the stock has yet to break out of its long-term downtrend, and doesn't look like it will be doing so in the near future.
· More on Tellabs Inc.'s Stock
Next: Worst Stock No. 4Related Links:
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No. 4: MGIC Investment Corp.
Current Stock Quote: MTG
Price on 6/30/98: $57.06
Price on 6/30/08: $6.11
10-Year Return: -89%
In a Nutshell: Mortgage Guaranty Investment Corporation's (MGIC) cause of decline is implied by its name -- the subprime mortgage meltdown. Before that, until mid-2007, things were going just fine for the Milwaukee-based firm. MGIC will likely not return to profitability before 2009, and in the meantime its stock suffers.
· More on MGIC Investment's Stock
Next: Worst Stock No. 3Related Links:
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No. 3: Ciena Corporation
Current Stock Quote: CIEN
Price on 6/30/98: $243.68
Price on 6/30/08: $23.17
10-Year Return: -90%
In a Nutshell: Ciena is joining the rest of the telecom-related companies in this list that suffered during the dot-com bust. Its stock peaked in 2000, and tumbled ever since. Losses have continued to roll in for years, but more recently, Ciena's performance has improved. Wall Street, though, may not be so quick to forgive and forget.
· More on Ciena's Stock
Next: Worst Stock No. 2Related Links:
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No. 2: MBIA Inc.
Current Stock Quote: MBI
Price on 6/30/98: $49.91
Price on 6/30/08: $4.39
10-Year Return: -91%
In a Nutshell: Let's just say that there may be no worse business to be in than mortgage bond insurance in 2008. That's why MBIA is floundering. Recent credit rating downgrades are putting it in perilous financial shape.
· More on MBIA Inc.'s Stock
Next: Worst Stock No. 1Related Links:
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No. 1: Ambac Financial
Current Stock Quote: ABK
Price on 6/30/98: $39.00
Price on 6/30/08: $1.34
10-Year Return: -97%
In a Nutshell: All bond insurers have been hammered by the subprime mortgage mess. But Ambac Financial Group was doubly slammed by getting downgraded by rating agencies and booted out of the S&P 500 in June. Its stock is now just around $2.50 a share.
· More on Ambac's Stock
More on AOL: 10 Game ChangersRelated Links:
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10 Game Changers
Now that you've seen some company stocks that are flaming out, check out 10 companies that are rising stars and may be the next big things. Georges Yared picks companies that he thinks could be commerce's next kings.
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