The stock market is on the verge of another year of double-digit percentage gains, but some players haven’t joined in the fun.
Peloton, Zoom Video, Penn National Gaming and Global Payments are among the stocks that have been relegated to Santa’s “naughty list” not only by staying away from the rally, but also registering big losses for the year.
CNBC’s “Trading Nation” asked two of its traders which of the most deteriorating stocks could be about to rebound in the new year.
Nancy Tengler, CEO and Chief Investment Officer at Laffer Tengler Investments, pointed to payments company Block, formerly known as Square. Shares have fallen 23% this year.
“It’s a company that finds itself in an ideal space for disruption, but it appears to have encountered a number of hurdles this year, not just recent regulatory concerns over ‘Buy now, pay later’, but there are. had concerns about slowdowns in payments and as the “stimmy” tax checks started to fade, ”Tengler said Thursday.
The tailwinds for 2022 are now piling up, she said. An ecommerce partnership with TikTok and its acquisition of the “Buy Now, Pay Later” company Afterpay are two reasons for optimism, according to Tengler.
Joule Financial chairman Quint Tatro is instead focusing on Las Vegas Sands casino action, which is down more than 35% this year.
“Las Vegas Sands has really had a double whammy this year. Obviously it’s an entertainment name that’s going to have some trouble because of Covid, but it’s tied to China as well. So this stock really has. been in the trash, ”Tatro said. during the same interview.
Chinese stocks and companies exposed to the country had a chaotic 2021 as Beijing cracked down on industries ranging from tech to private education amid the country’s uneven economic recovery. Las Vegas Sands generates nearly half of its revenue in Macau, a gambling destination off the coast of mainland China.
“I think travel and games will come back,” Tatro said. “It’s a stock that looks pretty cheap, which has been beaten, but I think it will do well in the years to come.”
Disclosure: Laffer Tengler Investments owns SQ. Joule Financial owns LVS.