Not every stock that gets whacked deserves it.
Stocks may fall because of bad news that’s real but temporary. They may fall because a company sacrifices short-term profits for long-term benefits. They may fall because investors, moving as a herd, take a dislike to a particular industry.
That’s why I like to look for buy candidates among stocks that have been beaten up. In this column, I compile a Casualty List of stocks that have been pummeled in the latest quarter, and I think have good comeback potential.
The Casualty List you’re about to read is the 71st in a series that began in 2000. The average 12-month gain on my picks has been 15.2%, handily beating the 9.9% average for the Standard & Poor’s 500 Index. (Figures are total returns, including dividends.)