BOSTON (TheStreet) -- The S&P 500 Index, the benchmark for U.S. stocks, is rising for a third consecutive year after a recession decimated corporate profits in 2008 and 2009.But, some stocks are languishing, as their businesses are dogged by weaker demand from customers, higher energy prices or special circumstances. 10 Best-Performing S&P 500 Stocks of 2011 The S&P 500 has fallen from a high of 1,343 on Feb. 18. Uprisings in the Middle East and an earthquake and ensuing nuclear calamity in Japan prompted the sell-off. Still, the stock market has regained a firmer footing in the past week, as investors were pleased by improvement in the U.S. job market. Top-Performing Energy Stocks Picked by Funds The following 10 S&P 500 stocks, the worst of 2011 so far, have fallen fast. Each has been hurt by a turn in sentiment related to business prospects. For opportunistic buyers, these equities may offer value. 10. Carnival ( CCL) owns and operates cruise lines, including Princess and Holland American. Its stock soared 46% in 2010, but is down 16% this year. Adjusted fiscal first-quarter earnings increased 58% to 19 cents, matching the consensus estimate, as sales gained 10%. But, the stock tumbled nearly 5% in reaction to the report as management signaled that revenue would be lower than expected in 2011. Also, higher fuel costs hampered profit growth. A higher gasoline price not only raises Carnival's operating costs, but also deters Americans from taking vacations, as they have less discretionary income.
8. Target ( TGT) is a multi-line retailer, selling clothing, food and household items. Target's stock advanced 24% in 2010, but has fallen 17% this year. Its adjusted fiscal fourth-quarter earnings increased 11% to $1.38, narrowly missing consensus, as sales inched up 2.4%. Last week, William Blair, voicing the criticism of many analysts, downgraded Target to "market perform." Also, Credit Suisse lowered its target for the stock, citing a slowdown. Same-store sales, the key metric for retailers, fell 2.5% in 2010. Given the rise in gasoline prices, discounters like Target may see a drop in same-store sales as consumers retrench. Its stock sells for 11-times forward earnings, an attractive 46% industry discount.
6. Hudson City Bancorp ( HCBK) is a consumer-oriented savings, mortgage and consumer loan bank, based in New Jersey. Its stock dropped 7% in 2010 and has now fallen 23% in 2011, lagging the S&P 500. Hudson's adjusted fourth-quarter earnings decreased 11% to 25 cents, beating analysts' consensus by 13%, as sales fell 5.8%. The stock dropped 9%, following the release. Non-performing loans rose from 2% to 2.8%, year-over-year, and the provision for losses remained steady at $45 million, signaling weakness in core businesses. Investors expecting balance sheet repair and dividend increases were discouraged. But, Hudson sells for a forward earnings multiple of just 11, a 57% peer discount, and yields 6%, to boot.
4. Tellabs ( TLAB) designs equipment for communications service providers. The company's stock appreciated 19% in 2010, but has dropped 24% in 2011. Tellabs' adjusted fourth-quarter profit tumbled to two cents, missing analysts' consensus by 76%, as sales grew 5.5%. Tellabs was unprofitable on a GAAP basis. Its stock fell 19% in reaction to the quarterly report. The stock was then downgraded to "sell" by Standard & Poor's. Tellabs has questionable growth prospects. Its sales have dropped 5% a year since 2008. But, it is inexpensive based on book value and cash flow, offering peer discounts of 64% and 70%, respectively. Just 9% of researchers rate it "buy" as business is expected to decline.
2. F5 Networks ( FFIV) makes hardware and software to improve the performance and security of servers and data-storage devices. Part of the cloud-computing movement, it was a beloved growth stock in 2010, more than doubling. It's down 27% in 2011. F5's adjusted fourth-quarter earnings beat consensus by 6.4%, but its stock dropped 21% as management provided poor guidance. Goldman Sachs recently reiterated its "sell" rating on the stock, forecasting lower server sales in the year ahead and a slowdown in F5's growth rate. Costing 24-times cash flow and 8-times book value, F5 is priced for rapid expansion. It receives "buy" ratings from 53% of analysts in coverage.