25 ‘dogs of the S&P 500’ that could outperform in early 2017

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Pranab Patel, a trader at Belgian KBC bank, reacts on the trading floor at the bank headquarters in Brussels, Belgium August 25, 2015. Volatile global markets got some respite from the latest blood-letting on Tuesday as bargain hunters nudged up Asian and European stocks, though China, at the center of the rout, was smashed again.
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Yves Herman/REUTERS

If you are looking to make money in the stock market next month, your strategy should be to buy the S&P 500’s worst-performing stocks of 2016.

That’s according to Nautilus Investment Research which measured the “Dogs of the S&P Effect,” or “the tendency of the prior year’s laggards to outperform the prior year’s leaders.”

The laggards tend to outperform leaders by an average of 4.84% in January “as tax loss selling abates and bottom fishers enter the scene,” says Nautilus.

However, Nautilus warns, “the effect is very short-lived and reverses completely in February” when laggards tend to underperform leaders by an average of 4.76%.

The 25 biggest laggards of 2016, according to Nautilus, are presented below.


1. Endo International

Ticker: ENDP

Sector: Health Care

Stock price: $15.67

2016 YTD return: -74.4%


2. First Solar

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First Solar

Ticker: FSLR

Sector: Information Technology

Stock price: $32.62

2016 YTD return: -50.3%


3. TripAdvisor

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Thomson Reuters

Ticker: TRIP

Sector: Consumer Discretionary

Stock price: $46.74

2016 YTD return: -45%


4. Perrigo

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Thomson Reuters

Ticker: PRGO

Sector: Health Care

Stock price: $82.35

2016 YTD return: -42.8%


5. Vertex Pharmaceuticals

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Vertex Pharmaceuticals

Ticker: VRTX

Sector: Health Care

Stock price: $74.14

2016 YTD return: -40.7%


6. Under Armour

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Rob Stinnett / Flickr

Ticker: UA

Sector: Consumer Discretionary

Stock price: $25.08

2016 YTD return: -38.8%


7. Stericycle

Ticker: SRCL

Sector: Industrials

Stock price: $76.86

2016 YTD return: -36.9%


8. Alexion Pharmaceuticals

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Google Images

Ticker: ALXN

Sector: Health Care

Stock price: $122.91

2016 YTD return: -35.1%


9. Allergan

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Thomson Reuters

Ticker: AGN

Sector: Health Care

Stock price: $207.94

2016 YTD return: -34.7%


10. Mallinckrodt

Ticker: MNK

Sector: Health Care

Stock price: $49.32

2016 YTD return: -33.4%


11. Illumina

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Myriad Genetics

Ticker: ILMN

Sector: Health Care

Stock price: $128.21

2016 YTD return: -33.4%


12. Mylan

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Thomson Reuters

Ticker: MYL

Sector: Health Care

Stock price: $37.39

2016 YTD return: -31.2%


13. L Brands

Ticker: LB

Sector: Consumer Discretionary

Stock price: $66.24

2016 YTD return: -31%


14. Regeneron Pharmaceuticals

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Reuters/ Mike Segar

Ticker: REGN

Sector: Health Care

Stock price: $373.83

2016 YTD return: -30.2%


15. H&R Block

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Brendan McDermid/Reuters

Ticker: HRB

Sector: Consumer Discretionary

Stock price: $23.22

2016 YTD return: -30.1%


16. Under Armour

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Getty/Justin Berl

Ticker: UAA

Sector: Consumer Discretionary

Stock price: $29.15

2016 YTD return: -29.3%


17. Frontier Communications

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Wikimedia Commons

Ticker: FTR

Sector: Telecommunication Services

Stock price: $3.35

2016 YTD return: -28.3%


18. McKesson Corp

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Justin Sullivan/Getty Images

Ticker: MCK

Sector: Health Care

Stock price: $141.85

2016 YTD return: -28.2%


19. Gilead Sciences

Ticker: GILD

Sector: Health Care

Stock price: $72.17

2016 YTD return: -28.1%


20. Coty

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Reuters/Susana Vera

Ticker: COTY

Sector: Consumer Staples

Stock price: $18.44

2016 YTD return: -27.9%


21. Hanesbrands

Ticker: HBI

Sector: Consumer Discretionary

Stock price: $21.56

2016 YTD return: -26.8%


22. Pitney Bowes

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REUTERS/Srdjan Zivulovic

Ticker: PBI

Sector: Industrials

Stock price: $15.34

2016 YTD return: -25.9%


23. AmerisourceBergen

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AP/George Widman

Ticker: ABC

Sector: Health Care

Stock price: $79.5

2016 YTD return: -24.5%


24. Signet Jewellers

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AP/Paul Sakuma

Ticker: SIG

Sector: Consumer Discretionary

Stock price: $93.59

2016 YTD return: -24.2%


25. Equity Residential

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Flickr / snappED_up

Ticker: EQR

Sector: Real Estate

Stock price: $63.72

2016 YTD return: -22.9%


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