Former high flying stocks that may rise from the ashes

Philip van Doorn, an investment analyst at Marketwatch, recently published an article on 60 stocks down at least 50% from their 2021 highs. He writes —

So if you are looking for former high-flyers that may rise from the ashes to soar again, the following list may be useful to begin your own research.

I love the language and the sentiment, so I used Fidap to replicate the list. Here are the stocks above a $10bn market cap that have fallen the most since their highs in the past year (click here to see the query in Fidap) —

Analysis as of Dec 3, 2021

The majority of the stocks are in the tech and consumer cyclical space. QuantumSpace leads the pack, having fallen nearly 80% from its peak. The company, according to Wikipedia —

QuantumScape is an American company that does research about solid state lithium metal batteries for electric cars. The company is headquartered in San Jose, California and employs around 400 people. Investors include Bill Gates and Volkswagen.

The company is in a hot space — EV batteries — but has zero revenues.

How we did this analysis in Fidap

We used the TICKERS table in Fidap, and specific fields including ticker, high_1y, closeadj, marketcap.

Here’s the query —

SELECT
    ticker,
    name,
    sector,
    high_1y,
    closeadj,
    (closeadj - high_1y) / high_1y * 100 AS fall_from_high
FROM
    fidap.US_EQUITIES.tickers
WHERE
    marketcap > 10e9
    AND fall_from_high < -50
    AND isdelisted = 'N'
order by fall_from_high asc
limit 20

We use the last available closing price closeadj as well as the pre-calculated prior 1 year high high_1y to calculate the fall from high. We add restrictions that the market cap is at least $10bn and the fall from high is greater than 50%.

That’s it!