• 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
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • 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
    • Trifecta Stocks
  1. Home
  2. / Investing

Updating My Tax Loss Selling Rebound Exercise for These 12 Stocks

So far nine are in positive territory, and are up an average of just over 11%.
By JONATHAN HELLER
Feb 04, 2019 | 12:00 PM EST
Stocks quotes in this article: WGO, UNFI, GS, BAC, GIS, KHC, GRPN, KRO, HAIN, BBBY, BCC, MEI, PETS

My 2018 tax loss selling rebound exercise continues to bear fruit early on in 2019. The objective, as in past years, was to identify names that had been hammered during the year, might be further sold off late in the year in order to offset gains, potentially setting them up for a rebound in the New Year.

Of course, besides being punished, qualifiers also had to exhibit some level of "cheapness" and meet the following criteria:

  • Down at least 30% year to date,
  • Forward price earnings ratios below 15 in the next two fiscal years
  • Minimum market cap $100 million

The resulting list was then whittled down from 200 to 12, and released in three tranches of four names each in mid-December. Overall, since the first update, results have improved. So far nine of the 12 are in positive territory, and are up an average of just over 11%.

Tranche 1, released on 12/10 has perked up over the past month. Up an average of about 7% since, it's ahead of the S&P 500 (+2.7%) and Russell 2000 (+1.9%). Winnebago (WGO) (+24%) remains the overall leader so far, while United Natural Foods (UNFI) (-11.9%) is the laggard, but has picked up a little steam. Last week, the company garnered some headlines when it filed a lawsuit against Goldman Sachs (GS) and Bank of America Merrill Lynch (BAC) regarding advice those firms gave about the Supervalu acquisition; it appears as though UNFI may have overpaid, and in turn took on a lot of debt. Rounding out this tranche is General Mills (GIS) (+16.2%), and Kraft Heinz (KHC) (-2%).

Tranche 2, released on 12/12 is up 15% on average, again, better than the S&P 500 (+2.6%) and Russell 2000 (+4.3%). Groupon (GRPN) remains the winner so far (+23.5%); Kronos (KRO) has also staged a nice recovery (+20%). Hain Celestial (HAIN) (-3.2%) is still in modestly negative territory, while Bed Bath & Beyond (BBBY) (+20.5%) has rebounded about 25% over the past month. Much of that gain stems from a positive outlook issued by the company in early January - including earnings per share guidance of $2.00 for 2019 - with its third quarter results.

Tranche 3, released on 12/14 is up an average of 11.5%, also well ahead the S&P 500 (+2.1%) and Russell 2000 (+3.4%). Boise Cascade (BCC) is the leader here so far (+17%) while Methode Electronics (MEI) (+13%) and Skechers SKX (+14%) are not far behind. PetMed Express (PETS) (+1.6%) has given back some performance over the past month.

So far so good, but one of the true tests would be to see how these names performed in a down market.

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, Jonathan Heller had no position in the securities mentioned.

TAGS: Investing | Markets | Stocks | Trading

More from Investing

Broadcom Appears Wired to Go Higher

Bruce Kamich
Dec 5, 2019 12:40 PM EST

Traders could go long on AVGO, as the charts appear to show price targets of around $335 and then $400.

As Nike Finds Its Footing on Direct Sales, Expect It to Race Higher in 2020

Stephen Guilfoyle
Dec 5, 2019 11:39 AM EST

But if China trade talks fail, this shoe company could get tripped up, so here's how to play it.

Ready, Set, Go: Nike Could Break Out to the Upside

Bruce Kamich
Dec 5, 2019 11:09 AM EST

Let's check the charts and technical indicators before we lace up a recommendation.

Weakness After Protracted Upside Move Causes Discomfort

James "Rev Shark" DePorre
Dec 5, 2019 10:52 AM EST

Some traders seem unsettled by a bit of downside volatility after not experiencing much of it of late.

Here's How I'd Play Nike

Timothy Collins
Dec 5, 2019 10:41 AM EST

Nike is a name that draws a good amount of business from China.

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

  • 12:24 PM EST GARY BERMAN

    Fibocall: The SPX-Cash Long-Term View

    You will hear from many analysts on TV screaming t...
  • 10:35 AM EST BOB LANG

    Added Some Apple

    We'll take advantage of this pullback and add some...
  • 01:50 PM EST BOB LANG

    Added Some HD, MRTX

    We'll add this strong biotech name and a retailer ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

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