Earlier last year, the stock market crashed during the onset of the COVID-19 pandemic, tragically crippling many industries and shutting down thousands of businesses across the United States. Some companies were able to come back and see massive growth, while others continue to struggle.
These five entries were among the worst performing of 2020; however, with the COVID vaccine currently being rolled and the light at the end of the tunnel growing brighter, these stocks could make a comeback.
5. United Airlines (NASDAQ: UAL) − Down 50%
Airlines, in general, took a really big hit this year as people stopped traveling and countries enacted travel bans, but the worst hit was United Airlines as its stock fell more than 50% over the year. United Airlines has recovered from its initial 80% drop in March when the market crashed. xxx
The good news is their stock has gone up ever since the news of an effective COVID-19 vaccine was announced, but the bad news is there are a lot of obstacles as vaccinating a sizable portion of the population will be difficult to implement and the billions of dollars in debt United Airlines took as a part of its bailout.
4. Carnival Corp (NYSE: CCL) − Down 57%
Like airlines, the cruise ship industry also took a tremendous blow with the biggest loser being Carnival Corp, one of the world’s largest cruise lines, having gone down 57%.
All cruises were canceled in March 2020, and since then, Carnival Corp has taken measures to weather the storm by reducing the size of its fleet and sold two of its ships to raise capital, but the future is not bright because even prior to the pandemic, Carnival’s EBIT margins have been on the decline for several quarters now.
3. Farmer Bros (NASDAQ: FARM) − Down 64%
Stepping away from travel industries, the food service industry is another industry that took a big hit as well, but Farmer Brothers, in particular, took one of the largest blows having lost over 64% of its stock value, although the stock is currently on the rise.
$FARM, Farmer Brothers Company, stock price is #down 70% YTD. With 70% of sales derived from $coffee the stock could see more pain ahead. Nov. 10 closing @ $4.31
— AllByte Commodities (@allbytecmdty) November 11, 2020
Farmer Brothers specializes in manufacturing and distributing coffee, tea, and about 300 other foodservice items to restaurants and establishments, and this year saw the closing of over 110,000 establishments; in fact, during the height of the pandemic, Farmer Brothers saw its direct store delivery fall 70%.
2. Sundial Growers (NASDAQ: SNDL) − Down 81%
Sundial Growers is a cannabis company headquartered in Calgary, Alberta, and it had a really rough time in 2020 as its stocks fell over 81% and reported an operating loss of $151.5 million in the first nine months of 2020.
Sundial had to sell some of its stock and converted some of its debt into equity to stay afloat, although there is a renewed hope in Sundial, and the marijuana industry as a whole, as the state of Georgia recently elected two Democrats; both of whom are pro-marijuana reform.
1. Globus Maritime (NASDAQ: GLBS) − Down 94%
Globus Maritime saw the largest dropped of all stocks in 2020 has gone down 94% over the year, and unlike the other entries on this list, Globus has seen almost no growth; any growth gained is met with an immediate drop.
$GLBS Down 30%
Globus Maritime Limited Announces Reverse Stock Split
— The Rock Trading #TRT (@The_RockTrading) October 19, 2020
Globus Maritime manages a fleet of bulk vessels that transports iron ore, coal, grain, steel, aluminum, and other kinds of dry bulk cargo, but due to the pandemic, global demand for manufacturing and construction has dropped considerably making recovery a difficult prospect.
This has all been my personal opinion, and not to be taken as investment advice. Talk to your financial advisor about that.
It will be interesting if and when these companies recover. With the vaccines out, it’s only a matter of time. Follow BTC Pro for the latest in-depth news on cryptocurrency and financial news.
— Reuters (@Reuters) April 22, 2020