S&P 500 Underperformers: 22 Stocks with Declining Returns Over the Last Decade, and One is Being Removed
S&P 500 Overview: The S&P 500 Index, established in 1957, is a key stock market index in the U.S., reflecting overall market performance and health, with over a 200% increase in value over the past decade.
Stocks with Negative Returns: A report identifies 22 stocks within the S&P 500 that have experienced negative total returns over the last 10 years, including Walgreens Boots Alliance and Viatris Inc.
Walgreens' Removal from Indexes: Walgreens Boots Alliance will be replaced in the S&P 500 Index on August 28, following its removal from both the Dow Jones Industrial Average and Nasdaq 100 due to poor performance.
Recent Performance Trends: Despite their long-term losses, 19 of the 22 identified stocks showed positive returns in August, indicating potential recovery, particularly in sectors like healthcare and consumer discretionary.
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- Price Target Adjustment: Piper Sandler raised Occidental Petroleum's (NYSE:OXY) price target from $46 to $47 while maintaining a Neutral rating, reflecting expectations for strong Q4 results, although it noted challenges from weak oil and gas prices.
- Market Outlook: BofA also increased its price target for Occidental from $44 to $45, emphasizing that geopolitical factors, such as unrest in Venezuela and Iran, have contributed to rising crude prices, indicating a growing focus on the oil and gas sector.
- Industry Dynamics: Analysts expect that by fiscal 2026, oil companies will prioritize maintenance programs, while several gas producers will focus on growth to meet rising LNG demand, highlighting a strategic shift within the industry.
- Investment Comparison: While Occidental is viewed as a potential investment, analysts believe that certain AI stocks offer greater upside potential and lower downside risk, suggesting investors consider opportunities in other sectors.
- Oil Price Rebound: In January 2026, Occidental Petroleum's shares surged 10.4%, significantly outperforming the S&P 500's 1.4% increase, primarily driven by a 16% rise in Brent crude and a 14% increase in WTI, showcasing the company's strong performance amid recovering oil prices.
- Asset Sale Boosts Cash Flow: Occidental sold its chemicals business, OxyChem, to Berkshire Hathaway for $9.7 billion in early January, with plans to use $6.5 billion of that cash to reduce debt, thereby lowering its debt level below $15 billion and enhancing financial flexibility.
- Contract Structure Optimization: The company amended its Delaware Basin natural gas gathering contract with Western Midstream Partners, transitioning from a cost-of-service agreement to a fixed-fee structure, which is expected to save costs and improve flexibility in developing oil and gas assets while reducing its ownership stake from 42% to 40%.
- Improved Financial Position: With rising oil prices and reduced debt, Occidental is poised to generate more cash flow in 2026, further strengthening its balance sheet and enhancing long-term investment appeal, even after last month's significant share price rally.

- Berkshire Hathaway's Investment: Berkshire Hathaway's most successful investment since the onset of Covid-19 involves a group of five Japanese trading companies.
- Value Increase: The value of this investment has surged to nearly $40 billion following a stock rally in 2026.

- Cash Reserves: The article discusses the potential benefits of having substantial cash reserves, suggesting that it may not be as detrimental as previously thought.
- Financial Flexibility: It highlights how cash can provide financial flexibility and security, allowing individuals and businesses to navigate uncertain economic conditions more effectively.
- Investment Opportunities: The piece also mentions that having cash on hand can create opportunities for strategic investments when market conditions are favorable.
- Economic Context: The discussion is framed within the current economic landscape, emphasizing the importance of liquidity in times of volatility.
- Manufacturing Index Surge: The US January ISM manufacturing index rose by 4.7 to 52.6, surpassing expectations of 48.5, marking the strongest expansion in over 3.25 years, which bolstered market optimism and contributed to stock gains.
- Chip Stocks Rally: Chipmakers and AI infrastructure stocks performed strongly on Monday, with Sandisk (SNDK) surging over 15% to lead the S&P 500 gainers, reflecting strong demand for tech stocks and a recovery in investor confidence.
- Energy Stocks Under Pressure: Energy producers faced headwinds as WTI crude oil prices fell more than 4%, with Diamondback Energy (FANG) and Occidental Petroleum (OXY) both declining over 3%, indicating growing concerns in the energy sector.
- Cryptocurrency Market Retreats: Bitcoin plummeted over 7% to a 9.75-month low, leading to widespread declines in cryptocurrency-related stocks, with Galaxy Digital Holdings (GLXY) and Strategy (MSTR) both dropping over 6%, reflecting weakened investor confidence in the crypto market.
- Market Recovery: The S&P 500 index rose by 0.39%, the Dow Jones Industrial Average increased by 0.84%, and the Nasdaq 100 climbed by 0.64%, reflecting positive market sentiment driven by strong economic signals, particularly following the expansion of the manufacturing index.
- Rare Earth Stocks Surge: President Trump's plan to launch a $12 billion strategic stockpile of critical minerals to reduce reliance on China has led to a rise in US rare earth stocks, with USA Rare Earth up over 12% and United States Antimony Corp up over 6%, indicating a positive impact from supportive policies on the sector.
- Energy Stocks Under Pressure: WTI crude oil prices fell by more than 4%, primarily due to easing geopolitical risks, putting pressure on energy producers, with companies like ConocoPhillips and Chevron seeing declines of over 2%, reflecting market concerns about energy demand prospects.
- Cryptocurrency Market Retreats: Bitcoin prices dropped over 7% to a 9.75-month low, leading to widespread declines in cryptocurrency-related stocks, with Galaxy Digital Holdings down more than 4%, highlighting a weakening market confidence in crypto assets.









