The five worst performing stocks on the S&P 500 so far this year include companies like Coach Inc (NYSE:COH), Whole Foods Market, Inc. (NASDAQ:WFM) and Staples, Inc. (NASDAQ:SPLS). All of these stocks are under consumer discretionary space. The challenges that these companies face are unique and different though.
Seema Mody of CNBC was reporting on the five worst underperforming stocks so far this year and the names were all from a similar segment, consumer discretionary. Analysts who reviewed these underperforming retail stocks said that this highlights the broader concerns around the state of the consumer. Coach Inc (NYSE:COH) has lost approximately 39% YTD whereas Whole Foods Market, Inc. (NASDAQ:WFM) and Staples, Inc. (NASDAQ:SPLS) lost 33% and 31% percent respectively.
One of the analyst who covers Coach Inc (NYSE:COH), said that it’s all about getting the traffic back in stories via channelized marketing and investment. The new merchandise coming out in September under the new director of Coach Inc (NYSE:COH) could also spur demand, however it is just a speculation and we can just stay cautious.
Whole Foods Market, Inc. (NASDAQ:WFM) had disappointed earnings results which resulted in the shares getting hit. Some experts say that the stock is oversold and that its currently trading at an attractive valuation which could actually stabilize Whole Foods Market, Inc. (NASDAQ:WFM) on the market.
Staples, Inc. (NASDAQ:SPLS) was negatively impacted by badweather conditions earlier this year and this resulted in a reduced food traffic.
“Analysts say, going forward the retailers need to focus on strengthening their online platforms.” Mody Said.
The key investor in Coach Inc (NYSE:COH) is Blue Ridge Capital with over 4.3 million shares as of March 31st 2014. Lansdowne Partners owns approximately 8.6 million shares of Whole Foods Market, Inc. (NASDAQ:WFM) and would definitely be hoping for a rebound. Pzena Investment Management has about 31.9 million shares in Staples, Inc. (NASDAQ:SPLS) which has just started to gain on the market.