These stocks rose when companies lost money. So that's not as crazy as it sounds

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<pre><pre>These stocks rose when companies lost money. So that's not as crazy as it sounds

The monetary forces that have helped revive the bull market are so strong that stocks have risen significantly over the past year, even though the companies themselves have lost money.

A list of the best performers among the money losers can be found below.

In an article in the Wall Street Journal, James Mackintosh called Tesla

TSLA, + 8.10%

and General Electric

GE, + 3.13%

"The two most valuable companies at a loss" after Tesla's shares doubled in three months and GE's stock rose 44%.

"The proportion of US listed companies that have been losing money for three years has peaked since the late 1990s last year," Mackintosh wrote, citing data from Andrew Lapthorne, global leader in quantitative research at Société Générale.

Given the negative interest rates in Europe and Japan and the increasing stimulus from the US Federal Reserve, investors should not be surprised that the S&P 500 index

SPX, + 0.50%

returned 26% last year. Investors see the US stock market as an oasis.

Tesla and GE offer contrasts when it comes to money-losing companies whose stocks have risen. Tesla's shares rose after the electric car maker reported a profit in the third quarter, opened a Chinese plant in the fourth quarter, and saw increasing demand.

GE represents a cleanup project. Even after the recent price gains, the stock has dropped 59% in the past three years.

Another example of a recovery game listed below is Caesars Entertainment

CZR, + 0.63%.

This is an increase of 55% over the past year as the casino company has continued its multi-year investment in property upgrades.

A look at the broad US market as represented by the Russell 3000

RUA, + 0.49%.

shows 808 companies that together achieved negative earnings per share in the last four reporting quarters. Of this group, 149 of the stocks have returned 50% or more in the past 12 months to January 12, with dividends reinvested.

This is such a large list that we turned to the S&P Composite 1500 Index, which is made up of the Large-Cap S & P 500, the S & P 400 Mid-Cap Index

MID, + 0.54%

and the S & P Small-Cap 600

SML, + 0.59%,

S&P Dow Jones Indices has several criteria for listing a company for the first time. One of them is that it shows the most four quarters of profitability. So all of these companies have been consistently profitable at some point, even if they have been through a difficult period recently.

There are 211 companies among the S&P 1500 that have lost at least one cent in the last four quarters by January 12. The S&P 1500 Composite Index returned 28% last year and 45 companies performed at least as well as the index, with four delivering more than 100%.

Here is the entire list, sorted by total 12-month returns:

Companies ticker Total return – 12 months to January 12th EPS – after four reported quarters Revenue growth – over the past 12 months from the previous 12-month period Gross margin – last quarter Gross margin – previous year's quarter
Diebold Nixdorf Inc.

DBD, + 0.08%

201% – $ 4.48 0% 25.35% 21.20%
Cutera Inc.

CUTR, -1.09%

158% – $ 2.62 6% 56.88% 52.75%
Ultra Clean Holdings Inc.

UCTT, + 2.07%

133% – $ 0.01 -5% 18.68% 14.06%
LivePerson Inc.

LPSN, + 0.45%

102% – $ 1.21 15% 70.05% 72.38%
Invacare Corp.

IVC, -3.66%

82% – $ 1.07 -4% 28.29% 26.57%
PDF Solutions Inc.

PDFS, + 1.95%

82% – $ 0.22 -11% 59.44% 46.61%
Agilysys Inc.

AGYS, + 0.98%

81% – $ 0.52 15% 46.40% 47.95%
Cardiovascular Systems Inc.

CSII, + 0.71%

80% – $ 0.09 15% 79.99% 81.21%
Western Digital Corp.

WDC, + 1.71%

76% – $ 5.27 -24% 20.45% 33.09%
Veeco Instruments Inc.

VECO, + 1.17%

76% – $ 4.08 -30% 34.80% 33.29%
Lumentum Holdings Inc.

LITE, + 0.50%

75% – $ 0.62 22% 35.87% 35.58%
Momenta Pharmaceuticals Inc.

MNTA, + 6.17%

74% – $ 2.16 -40% N / A N / A
Triumph Group Inc.

TGI, -0.55%

73% – $ 3.43 -4% 15.50% 9:03%
Universal Electronics Inc.

UEIC, -2.81%

71% – $ 1.05 8th% 23.98% 21.53%
Synaptics Inc.

SYNA, + 2.23%

70% – $ 0.67 -14% 36.28% 33.02%
Rambus Inc.

RMBS, + 2.55%

70% – $ 0.75 -12% 66.80% 79.03%
Colfax Corp.

CFX, + 1.71%

68% – $ 3.38 32% 43.49% 32.68%
Tenet Healthcare Corp.

THC, + 0.17%

67% – $ 2.31 -2% 8.47% 7.77%
Harmonic Inc.

HLIT, + 1.97%

64% – $ 0.10 1% 64.88% 49.02%
Cytokinetics Inc.

CYTK, + 5.81%

61% – $ 2.08 40% N / A N / A
Circor International Inc.

CIR, + 2.91%

59% – $ 7.86 5% 30.95% 32.39%
Aecom

ACM, + 1.52%

58% – $ 1.67 0% 4.66% 3.54%
Stericycle Inc.

SRCL, + 0.91%

56% – $ 4.91 -5% 31.62% 36.44%
Caesars Entertainment Corp.

CZR, + 0.63%

55% – $ 1.06 6% 39.53% 36.93%
Papa John & # 39; s International Inc.

PZZA, -0.66%

55% – $ 0.50 -9% 14.05% 10.78%
Equifax Inc.

EFX, + 1.38%

54% – $ 3.18 1% 47.63% 45.74%
Coty Inc. Class A

COTY, -0.94%

53% – $ 4.95 -7% 57.64% 55.87%
Boise Cascade Co.

BCC, -0.48%

53% – $ 0.16 -8th% 13.36% 11.33%
Jacobs Engineering Group Inc.

J, + 0.50%

51% – $ 0.69 21% 18.72% 18.88%
P. H. Glatfelter Co.

GLT, + 1.03%

48% – $ 1.30 9% 15.60% 14.88%
Zimmer Biomet Holdings Inc.

ZBH, -0.51%

45% – $ 0.49 0% 63.35% 63.43%
Hain Celestial Group Inc.

GROVE, + 0.87%

41% – $ 2.26 -7% 19.64% 16.50%
Legg Mason Inc.

LM, + 1.53%

41% – $ 0.74 -8th% 83.91% 82.31%
Crocs Inc.

CRO, -2.03%

39% – $ 0.34 10% 52.38% 53.27%
Hess Corp.

HE IS, + 1.34%

36% – $ 0.68 -3% 12.42% 20.89%
National Storage Affiliates Trust

NSA, + 1.91%

35% – $ 0.47 13% 38.46% 37.87%
Cohu Inc.

COHU, + 3.03%

35% – $ 2.67 68% 34.12% 39.90%
Live Nation Entertainment Inc.

LYV, + 1.46%

33% – $ 0.01 7% 22.44% 21.15%
CyrusOne Inc.

CONE, -6.46%

32% – $ 0.15 22% 16.94% 21.73%
Coca-Cola Consolidated Inc.

COKE, + 1.75%

32% – $ 0.60 4% 33.88% 34.21%
Edison International

EIX, -0.13%

32% – $ 0.99 -4% 19.59% 19.28%
Allergan plc

AGN, -0.39%

31% – $ 27.85 -1% 46.32% 44.59%
Kite Realty Group Trust

KRG, + 0.16%

29% – $ 0.56 -8th% 29.66% 29.89%
Weyerhaeuser Co.

WY, + 1.69%

29% – $ 0.20 -13% 16.28% 23.98%
Washington Real Estate Investment Trust

WRE, + 0.91%

28% – $ 0.05 1% 15.23% 24.03%
Source: FactSet

You can click the ticker for more information about each company, including profiles, news, pricing, analyst ratings, and financial information.

However, many of these stocks have recovered from earlier declines when investors were enthusiastic about the management teams' turnaround efforts. However, some additional data may also indicate reasons for investor confidence.

The table contains the sales growth figures as well as the gross margins for the most recently reported quarter and the same quarter of the previous year. This could give an insight into why these stocks have performed so well in the past year.

A company's gross margin is sales less costs to sell divided by sales. It is a measure of pricing power. Margin narrowing may result from discounting or other efforts to increase or defend market share. An increasingly narrow margin could be a bad sign. A rising margin, especially with increasing sales, is a positive sign that a company remains competitive.

The gross margin is not used in the banking, insurance and real estate investment industries. It is most useful to measure the pricing power of a single company over time. No useful comparisons between industries are possible.

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