• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

4 Well-Known Names Kick Off the 2023 Tax Loss Selling Recovery Portfolio

A social media giant, an online marketplace, a semiconductor producer and an automaker make the latest list of unloved stock losers.
By JONATHAN HELLER
Nov 28, 2022 | 10:00 AM EST
Stocks quotes in this article: META, EBAY, QCOM, F

Today I roll out the first tranche of my 2023 Tax Loss Selling Recovery Portfolio. The idea is to identify potentially cheap names that were down sharply in 2022 and might be pushed even lower at year-end as market participants book losses for tax purposes, but could recover in 2023 if selling pressure subsides. The objective is to outperform the S&P 500 and Russell 2000 indexes. This strategy worked well from 2018 through 2021, but not in 2022.

Here are the criteria for inclusion:

  • Down at least 30% year to date
  • Forward price-to-earnings (P/E) ratios below 15 in the next two fiscal years
  • Minimum market cap of $100 million

Just like last year, I've taken small positions in each of these names.

Here are the first four:

This one is a big surprise; not that fact that it made the list of candidates, but that I am selecting it for inclusion. Meta Platforms (META) (down 67% year to date) has had a horrendous year. It's a name I've never owned or wanted to own, so this is a first. Meta has its share of challenges, but no longer trades like the cult-stock growth story it once was at 14x and 12x 2023 and 2024 earnings, respectively. META ended its latest quarter with $41.8 billion, or about $15.50 a share, in cash and marketable securities and $10 billion in debt.

I've owned eBay (EBAY) (down 33%) in the past, specifically coming out of the 2008-2009 market meltdown. Shares of eBay currently trade at about 11x and 9x 2023 and 2024 consensus estimates, respectively. EBAY topped out above $80 in October 2020 and has been sliding most of the time since, closing Friday just above $45. The company has bought back a lot of its stock over the years, reducing shares outstanding from 1.2 billion at year-end 2015 to 548 million at the end of the most recent quarter. It instituted a dividend in 2019 and currently yields 1.95%.

Qualcomm (QCOM) (down 34%) trades at 12x and 10x 2023 and 2024 consensus estimates, respectively. Talk about profitability -- net profit margins were 29% in 2022 and 27% in 2021. Qualcomm currently pays a 75-cent quarterly dividend, which equates to a 2.4% yield. In addition, the dividend has grown at an 11.6% clip over the past 10 years (compound annual growth rate), quietly making QCOM a dividend champion of sorts.

Last but not least for the first tranche is Ford Motor (F) (down 35%). Ford trades at 8x and 7x 2023 and 2024 consensus earnings estimates, respectively. Ford stock started 2022 with a bang, eclipsing $25 in mid-January, but it has been rough running ever since. Ford shares closed at $14.08 last Friday. Ford currently yields 4.3%.

This is a first for my Tax Loss Selling Recovery Portfolio, four larger household names. The next two tranches likely will be dominated by smaller names.

(F is a holding of Action Alerts PLUS. Want to be alerted before the portfolio buys or sells these stocks? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Heller was long META, EBAY, QCOM and F.

TAGS: Investing | Stocks | Value Investing | Automotive | Media | Semiconductors & Semiconductor Equipment | Technology | Technology Hardware & Equipment | E-Commerce | Real Money

More from Stocks

Fast Food Might Offer Investors a Quick Buck

Bob Lang
Feb 7, 2023 5:15 PM EST

Let's see how these restaurants may be settling into a profit sweet-spot amid inflation's ups and downs.

Giddy Market Gets Powell Happy

James "Rev Shark" DePorre
Feb 7, 2023 4:33 PM EST

The euphoric reaction to the Fed among investors makes little sense -- but adds to the market volatility.

When It Comes to Politics and ETFs, If You Can't Beat 'Em, Join 'Em

Mark Abssy
Feb 7, 2023 2:17 PM EST

Surprise! Lawmakers, no matter the party, are not exempt from insider-trading laws, just like the rest of us. But we can all invest in these two new exchange-traded funds.

Is FMC Corp Facing a Downward Correction?

Bruce Kamich
Feb 7, 2023 12:55 PM EST

Let's see what the charts look like.

It's Decision Time for Bulls and the Market

James "Rev Shark" DePorre
Feb 7, 2023 11:45 AM EST

The market is at a very important juncture.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:22 AM EST REAL MONEY

    LIVE EVENT: Bruce Kamich and Todd Campbell Share Their Stock Market Insights

    This Monday, Feb. 6 at 12 p.m., our very own exper...
  • 02:58 PM EST REAL MONEY

    Sarge Guilfoyle Breaks Down the Jobs Report, Fed Policy and Stocks!

    Watch it here!
  • 11:35 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Trading an Irrational Market
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login