Goldman Sachs Group (GS)Securities and investment management company Goldman Sachs (GS) has also fallen on hard times as of late. Year-to-date, Goldman's stock has slipped -8.7%, compared to the broader markets which have remained close to even. Since last September, the stock has dropped -11.8%, so the problems at Goldman are not new. Additionally, GS underperformed earnings estimates by nearly -63%. Goldman reported EPS of $0.78, after experts projected EPS of $2.08. All these factors, as well as the chance that the legendary GS proprietary trading unit may be deep sixed due to new SEC rules, make Goldman Sachs an expensive stock to avoid.
JP Morgan Chase (JPM)Compared to other financial stocks on this list, JP Morgan Chase (JPM) has not had a disastrous year. That being said, JPM's 2010 has been far from successful. Over the past nine months, JP Morgan has dropped -2%, compared to the broader markets which have remained even. Since last September, the stock is down -3%. Experts do not appear to be thrilled with the stock's performance either, projecting EPS of just $0.89 next quarter, despite EPS of $1.09 last quarter. Things could be worse for this financial stock, yet it still remains a stock to sell.
Lloyds (LYG)Working primarily in the UK, Lloyds Banking Group provides a range of banking and financial services to its clients. This financial stock has done well in 2010, up +46% year-to-date. However, the stock still remains a shell of its former self with a stock price of just $4.78 and I'm not convinced that the upward momentum can continue much longer. There need to be wholesale improvements in lending, employment, foreclosures and consumer spending before gains like that will stick for any financial company. Get out of Lloyds while the getting is good.
Royal Bank of Scotland (RBS)Royal Bank of Scotland (RBS) is another banking stock that at first glance seems to have had recent success. In 2010, the stock has climbed nearly +63%. While the first nine months of 2010 may have been kind to this financial stock, the last year has not. Despite the gain, RBS is still down -17% over the past year. Likewise, the stock is down an incredible -93% over the past five years. It's -8.3% profit margin in its last income statement is hardly a selling point -- unless it is investors that need to be doing the selling.
Wells Fargo & Co. (WFC)Diversified Financial service company Wells Fargo (WFC) is another big-name financial stock worth selling. Since mid May, WFC's stock price has fallen -19.9%, or $6.54. In fact, it's been some time since Wells Fargo maintained any real financial growth, having dropped -11.8% over the past five years. More recently, WFC has disappointed stock holders by missing earnings estimates three of the last four quarters. This has caused experts to predict EPS of $0.54 this quarter after an EPS of $0.55 last quarter. Add a quarterly earnings growth of -3.5% into the equation, and Wells Fargo is a financial stock to sell.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.
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