The 10 Worst-Performing S&P 500 Stocks in June

Editors' pick: Originally published June 30. This article has been updated from June 30 with updated returns and charts.

Brexit volatility put a major damper on the global markets this month, and investors who owned these 10 S&P 500 stocks saw their profits shrink substantially in June.

Stocks rallied over the past three days (markets opened flat on Friday), and the S&P 500 finished out the month up 0.09%. However, the Index is in positive territory for the year, up 2.7%. 

Brexit worries had the market roiling late last week and early this week upon news that the U.K. would leave the European Union. Financial stocks dominated the list of 10 worst S&P 500 stocks for June.

Check out which companies made June's biggest losers.

10. Lincoln National
10. Lincoln National

Market Cap: $9.3 billion
Stock Return in June: -15.4%

Lincoln National (LNC - Get Report) is expected to report June-quarter financial results on Aug. 3. Analysts, according to Thomson Reuters, expect the Radnor, Pa.-based insurance company to report earnings of $1.58 a share, up 8% from the year-ago period, on revenue of $3.45 billion, up 1%, for the quarter.

Morgan Stanley analyst Nigel Dally rates Lincoln National at overweight and has a $54 price target associated with the stock.

"We are reiterating our Overweight rating on Lincoln following its investor day," Dally wrote in a note to clients on June 9. "While we wouldn't necessarily say there were any major surprises in the presentations, we felt management did a good job in addressing major concerns -- (1) low rates, (2) variable annuity captives, (3) energy exposure, and (4) DOL fiduciary standards. In our view, while it is clearly a challenging environment, the future prospects for the company are significantly stronger than what is reflected in the current stock price."

9. E*Trade Financial
9. E*Trade Financial

Market Cap: $6.5 billion
Stock Return in June: -15.8%

E*Trade Financial (ETFC - Get Report) is expected to report June-quarter financial results in late July. Analysts, according to Thomson Reuters, expect the New York-based brokerage firm to report earnings of 39 cents a share, up 54% from the year-ago period, on revenue of $474 million, up 6%, for the quarter.

Devin Ryan, an analyst with JPM Securities, rates E*Trade at market outperform with a $31 price target.

"Bottom line, given a rapidly building excess capital reserve (and management's track record of putting excess capital to work), we continue to believe the market is underestimating the potential for additional proactive capital utilization, and that any incremental actions are not reflected in forward estimates, in our view," Ryan wrote in a June 21 note to clients following meetings with E*Trade management. "We believe the risk/reward remains compelling in ETFC shares at ~13x our 2017E and we continue to see significant optionality in earnings related to interest rates and upside as excess capital is deployed."

8. Delta Air Lines
8. Delta Air Lines

Market Cap: $28 billion
Stock Return in June: -16.2%

Delta Air Lines (DAL - Get Report) is expected to report June-quarter financial results in mid-July. Analysts, according to Thomson Reuters, estimate that the Atlanta-based airline will report earnings of $1.80 a share, up 42% from the year-ago period, on revenue of $10.6 billion, down 1%, for the quarter.

"Management of Buy-rated Delta Air Lines, Inc. was the first network airline to recognize the risks inherent in the cyclical, competitive and high fixed cost airline industry and, in our view, put into place a plan to de-risk its business, identify financial goals, make them transparent to foster accountability and reward stakeholder, based on execution of the plan," wrote Sterne Agee CRT analyst Michael Derchin in a May 16 note to clients.

7. Biogen
7. Biogen

Market Cap: $53 billion
Stock Return in June: -16.5%

Biogen (BIIB - Get Report) is expected to report June-quarter financial results on July 21. Analysts, according to Thomson Reuters, expect the biotech company to report earnings of $4.68 a share, up 1% from the year-ago period, on revenue of $2.79 billion, up 8%, for the quarter.

Jefferies analyst Brian Abrahams rates Biogen at a buy, with a $323 price target.

"We met with BIIB's IR team coming out of this morning's positive Alzheimer's progress outlined at partner Eisai's Scientific Day. We came out reassured by their sharpened neuro focus, leaner company structure, stabilizing MS franchise, and potential NT nucinersin/Alzheimer's catalysts, though we believe the portfolio is in much need of a fresh element. Nonetheless, with limited pipeline potential in current valuation, we still see favorable upside/downside," Abrahams wrote in a June 29 note to clients.

Biogen is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Cramer and Jack Mohr, Action Alerts Research Director, wrote in a recently weekly commentary:

Shares continued their selloff this week. Although the pain was exacerbated by the Brexit outcome, we have been vocal about our intent to outright exit the position above $260 given our dislike for the company's increasing reliance on binary (boom or bust) pipeline outcomes and a deteriorating multiple-sclerosis franchise. That being said, we are very pleased with our decision to trim all but a sliver of the position above $291 per share when the stock was rising on a hope trade. 

6. Signet Jewelers
6. Signet Jewelers

Market Cap: $6.5 billion
Stock Return in June: -16.7%

Signet Jewelers (SIG - Get Report) is expected to report July-quarter financial results in late August. Analysts, according to Thomson Reuters, expect the Bermuda-based jewelry store chain to report earnings of $1.49 a share, up 16% from the year-ago period, on revenue of $1.45 billion, up 2%, for the quarter.

RBC Capital Markets analyst Brian Tunick rates Signet Jewelers at outperform but lowered his price target by $20 to $120 on Wednesday.

"We continue to view SIG as one of the better positioned retailers as its net share gainer position, coupled with synergies, should lead to mid-teens EPS growth over the next few years," Tunick wrote in a June 28 note to clients. "However, in the near term, we expect increased uncertainty around its credit book sale, as well as possible impact on Kay sales of negative publicity and Brexit in the UK to continue to weigh on the stock."

5. Charles Schwab
5. Charles Schwab

Market Cap: $33.3 billion
Stock Return in June: -17.2%

Charles Schwab (SCHW - Get Report) is expected to report June-quarter financial results on July 18. Analysts, according to Thomson Reuters, estimate that the brokerage company will report earnings of 30 cents a share, up 20% from the year-ago period, on revenue of $1.8 billion, up 15%, for the quarter.

JMP Securities analyst Devin Ryan rates Schwab at market outperform and has a price target of $34 on the company.

"We remain bullish on Schwab's long-term prospects, and also feel slightly more constructive on the earnings outlook on the year given what we would characterize as modestly better guidance," Ryan wrote in an April 25 note to clients following its earnings results.

4. Invesco
4. Invesco

Market Cap: $10.7 billion
Stock Return in June: -18.7%

Invesco (IVZ - Get Report) is expected to report June-quarter financial results at the end of July. Analysts, according to Thomson Reuters, estimate that the based Atlanta-based investment manager will report earnings of 56 cents a share, down 11% from the year-ago period, on revenue of $854 million, down 9%, for the quarter.

Jefferies analyst Daniel Fannon rates Invesco at buy with a price target of $35.

"Last week we traveled with the mgmt. of Invesco throughout Europe. While Brexit remains the primary headwind, flow trends in U.S. retail and institutionally broadly remain positive," Fannon wrote on June 20. "For an industry that is facing several headwinds from a regulatory perspective, IVZ is well positioned with its ETF franchise and global footprint. At 10.5X '17 EPS and a ~4% div yield we view IVZ's valuation as attractive."

3. Affiliated Managers Group
3. Affiliated Managers Group

Market Cap: $7.5 billion
Stock Return in June: -18.9%

Affiliated Managers Group (AMG - Get Report) is expected to report June-quarter financial results at the end of July. Analysts, according to Thomson Reuters, estimate that the West Palm Beach, Fla.-based asset management company will report earnings of $3.07 a share, flat compared with the year-ago period, on revenue of $589 million, down 9%, for the quarter.

Keefe Bruyette & Woods analyst Robert Lee rates Affiliated Managers at outperform with a price target of $229.

"While the short-term financial impact is potentially more moderate than recent deals given the possibility of issuing equity, we view these acquisitions favorably as the transactions further deepen and expand AMG's already sizable exposure to faster growing alternative strategies," Lee wrote on June 6 following the company's acquisition of minority stakes in five alternative asset managers. "Pro forma for the deals, AMG will have about $285bn of alternative AUM (about 41% of the pro forma total AUM) across 20 managers and about 115 strategies."

2. Synchrony Financial
2. Synchrony Financial

Market Cap: $21.1 billion
Stock Return in June: -19%

Analysts, according to Thomson Reuters, estimate Synchrony Financial (SYF - Get Report) to report earnings of 55 cents a share, down 15% from the year-ago period, on revenue of $3.2 billion, down 11%, for the June quarter.

Keefe Bruyette & Woods analyst Sanjay Sakhrani rates Synchrony at outperform with a price target of $35.

"Synchrony Financial (SYF) offers private label credit cards, dual cards, commercial credit products, and consumer installment loans through the company's wholly owned subsidiary, Synchrony Bank, and multiple platforms such as Payment Solutions, Care Credit, and Retail Card," Sakhrani wrote on June 17. "Over the long term, we like SYF shares given the company's strong fundamentals, growth potential, and the fact that private label is a lucrative part of the card industry to operate within."

1. Alexion Pharmaceuticals
1. Alexion Pharmaceuticals

Market Cap: $26.3 billion
Stock Return in June: -22.6%

Alexion Pharmaceuticals (ALXN - Get Report) is expected to report June-quarter financial results at the end of July. Analysts, according to Thomson Reuters, estimate the New Haven-Conn.-based biopharmaceutical company to report earnings of $1.18 a share, down 18% from the year-ago period, on revenue of $743 million, up 17%, for the quarter.

On Monday, Citigroup analyst Robyn Karnauskas upgraded Alexion to a buy. Karnauskas has a price target of $154 on the company.

The analyst says that investor worries regarding Alexion's U.K. exposure are overblown.

"We expect the negative sentiment around the stock to shift as the company continues to execute on the base business and investors become more comfortable around the long term growth," Barron's cited Karnauskas as writing. "We expect both these things to happen in next 6-12 months. We believe this weakness provides a good entry point as the stock is trading close to our worst case scenario valuation of $112/sh."

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