This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

4 Loser Stocks Poised for a Comeback in 2013

NEW YORK ( Stockpickr) -- Despite a few spend bumps along the way, the S&P 500 managed to grind out another double-digit gain in 2012.

Of course, not all stocks joined in on the upside. In fact, there were 45 stocks scattered over the S&P 500, S&P 400 (mid-caps) and S&P 60 (small-caps) that plunged by more than 40% over the past year.

>>4 Reasons to Buy Stocks in 2013

Many of those falling knives will stay down, which is why you shouldn't try to catch them. But the investing landscape is also filled with stocks that fell deeply out of favor in one year, only to rally sharply in the next year. Netflix (NFLX - Get Report), for example, plunged from $300 in the spring of 2011 to below $60 by the summer of 2012 but is now back up above $170. The huge gain over the past six months wasn't anticipated by the crowd that simply saw a losing stock chart.

Here are four more stocks with solid rebound potential in 2013.

>>5 Toxic Stocks That Are Poisoning Your Portfolio

Diamond Foods

Diamond Foods (DMND - Get Report), the packaged food company behind Kettle Brand chips, Emerald nuts, Pop Secret popcorn and other items, has been on a losing streak that began 16 months ago. Shares moved above $90 back then but now trade below $16.

What went wrong? A botched acquisition of the Pringles brand potato chips, fraudulent dealings with walnut growers, a complete turnover of management, and a last-minute capital infusion that boosted the share count were just some of the factors.

All of those issues are now behind Diamond Foods, but shares have failed to rebound as recent quarterly results remain messy. New management continues to sort out the final details of the mess that they inherited. More than likely, the new management team will look to sell off one of those brands to raise cash.

On a sum-of-the-parts basis, analysts at D.A. Davidson think shares are worth at least $20 a share, which is more than 40% above current levels. This stock will never revisit the heights seen back in 2011, but better days appear to lie ahead.

J.C. Penney
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ABFS $34.95 2.22%
CLF $2.34 1.70%
DMND $41.67 0.90%
JCP $8.24 -0.30%
NFLX $125.17 0.81%


Chart of I:DJI
DOW 17,791.81 -21.58 -0.12%
S&P 500 2,088.89 +0.02 0.00%
NASDAQ 5,122.7270 +6.5840 0.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs