15 Stocks Projected To Have The Biggest 5-Year EPS Declines

Each earnings season, traders obsess over two numbers above all else: EPS and revenue. But seasoned traders know share prices often respond to the direction of EPS and revenue growth rather than their magnitude and size.

A company with a low price-to-earnings ratio may look cheap to value investors at first glance. But if its EPS is declining over time, it could be a major red flag that something is fundamentally wrong with a company’s business model. Companies can milk earnings from businesses in secular decline for years, but those earnings declines almost always catch up to investors eventually.

Largest Projected EPS Declines

Many stocks experience short-term EPS fluctuations on a quarter-by-quarter basis. However, these 15 S&P 500 stocks are projected to have the largest EPS declines over the next five years, according to Finviz:

1. Newell Co NWL, -14% growth.
2. Western Digital Corp WDC, -13.8% growth.
3. SL Green Realty Corp SLG, -10.8% growth.
4. HollyFrontier Corp HFC, -10.3% growth.
5. Diamond Offshore Drilling Inc DO, -10.1% growth.
6. Delphi Technologies PLC DLPH, -9.8% growth.
7. ConocoPhillips COP, -9.6% growth.
8. State Street Corp STT, -9.5% growth.
9. Archer Daniels Midland Co ADM, -8.8% growth.
10. Kraft Heinz Co KHC, -8.2% growth.
11. Nektar Therapeutics NKTR, -7.3% growth.
12. FirstEnergy Corp. FE, -6.6% growth.
13. Prologis Inc PLD, -6.0% growth.
14. Phillips 66 PSX, -4.7% growth.
15. Nucor Corporation NUE, -4.1% growth.

Benzinga’s Take

It may be tempting to buy some of these stocks give many of them trade at very attractive earnings multiples. However, unless they can stop the earnings bleeding in the near future, the heavy losses most of these stocks have endured in the past year will likely continue.

Do you agree with this take? Email feedback@benzinga.com with your thoughts.

Related Links:

14 Stocks With The Highest Long-Term Projected Earnings Growth Rates

13 Stocks With The Highest EPS Growth Over The Past 5 Years

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