The 10 Worst Stocks of 2016

worst stocks of 2016While markets have hit record highs this year, the worst stocks of 2016 have managed negative double-digit returns. Short selling investors could have made big profits from falling stocks like these in 2016.

To help investors find struggling stocks, we've put together a list of the top ten worst stocks of 2016. To make our list, each company had to have a market cap of at least $1 billion and to have seen at least a double-digit drop in share price this year.

Some bad stocks might turn around in 2017, but these were the worst stocks to own in 2016...

Worst Stocks of 2016, No. 10: Lions Gate Entertainment Corp.

Founded in Canada and headquartered in the United States, Lions Gate Entertainment Corp. (NYSE: LGF) is a major producer of entertainment, including feature films and television programming. Through the beginning of November, the company's stock had tanked 41.3%, with a 52-week low of $16.21 per share.

However, LGF has had some good news recently, so it might not be the worst stock on our list. Lions Gate is working to close a $4.4 billion merger with Starz (Nasdaq: STRZA), and LGF stock is up 15% in just the past 30 days.

LGF is trading at $26.09, with shares down 19.45% year to date (YTD).

Worst Stocks of 2016, No. 9: LendingClub Corp.

LendingClub Corp. (NYSE: LC) is a U.S. peer-to-peer lending company. LendingClub's business model is to match individual borrowers with individual lenders, cutting out the traditional banks and financial institutions. But 2016 hasn't been a good year for LC. The company's latest reported return on assets is -1.9%, and its return on equity is -10.8%.

LC is currently trading at $5.22, and the stock is down 52.67% in 2016.

Worst Stocks of 2016, No. 8: Tableau Software Inc.

Tableau Software Inc. (NYSE: DATA) is a Seattle-based software company. DATA develops and produces interactive data visualization products for business analytics. The company's Q3 EPS was $-0.04, which was -14.29% off of expectations.
DATA is trading at $41.74 per share, with shares down 55.68% YTD.

Worst Stocks of 2016, No. 7: Puma Biotechnology Inc.

Puma Biotechnology (NYSE: PBYI) is a Los Angeles-based biotech company that concentrates on novel therapeutics for the treatment of cancer. Of the past 12 reported quarters, the company missed earnings estimates nine times and was off -1% for Q3. The next consensus EPS projection is $-2.02.

PBYI stock is trading at $31.00, with shares down 60.2% in 2016, making it one of the worst stocks of 2016.

Worst Stocks of 2016, No. 6: Fang Holdings Ltd.

Fang Holdings Ltd. (NYSE: SFUN) operates the largest real estate internet portal in China. The company's latest earnings release demonstrated growth, but not at the level expected.

Quarterly revenue was up just 1% over the last year to $250.1 million, with a $0.08 EPS. The company has also announced in the past week that it is restructuring. SFUN is selling assets and is talking about acquiring an energy company.

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SFUN stock is trading at $3.30 per share, with losses of 55.35% in 2016.

Worst Stocks of 2016, No. 5: Restoration Hardware Holdings Inc.

Restoration Hardware Inc. (NYSE: RH) is a California-based home furnishings company, selling home merchandise through stores, online, and catalogs. The company sells unique and high-end furniture, but sales have been down this year. They have also had some supply shortages, which hasn't endeared them to consumers.

RH's latest results posted EPS of $0.20 compared to $0.65 for the same period a year ago. The company is forecasting a 1% growth in net revenue for the year.

RH is trading at $30.86, with shares down 61.16% on the year.

Worst Stocks of 2016, No. 4: RR Donnelley & Sons Co.

RR Donnelley (NYSE: RRD) is a Chicago-based Fortune 500 integrated communications company. RRD provides commercial printing, marketing, and business communication services to its clients. Sales growth in the past five years was 2.4%. But EPS growth in the same period was -7.10%.

RRD is currently trading at $16.11, with losses of 63.52% in 2016.

You've seen some bad stocks from this year, but they get even worse. These are the three worst stocks of 2016...

Worst Stocks of 2016, No. 3: Fitbit Inc.

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Despite fitness trackers and wearables being popular, Fitbit Inc. (NYSE: FIT) remains a terribly unprofitable company. The San Francisco-based innovator of wearable fitness trackers has acquired rival Pebble, yet still can't seem to grow in what could be a saturated market. Since they haven't diversified, this is a problem.

Fitbit met earnings estimates in Q3 with $0.19 EPS, and its estimate for Q4 is a dismal $0.01 EPS.

FIT stock is trading at $7.41, with shares down 74.94% YTD.

Worst Stocks of 2016, No. 2: Herc Holdings Inc.

Herc Holdings Inc. (NYSE: HRI), formerly known as Hertz Global Holdings, is affiliated with the Hertz Corporation, which is the largest car rental company in the United States. HRI operates a large equipment rental operation, called Herc Rentals, that supplies equipment to construction companies, government, and other industries.

Latest quarterly results were $0.11 EPS, which missed estimates by $0.30. The company also has a negative return on equity of 1.81%.

Shares of HRI are trading at $40.30, with losses of 81.12% YTD.

Worst Stocks of 2016, No. 1: Valeant Pharmaceuticals Intl Inc.

Valeant Pharmaceuticals Intl. (NYSE: VRX) tops our list of the worst stocks of 2016. This Canadian pharmaceutical company develops and markets both prescription and non-prescription medications. The company is currently battling weak sales and patent expirations.

At one point last year, VRX was the most valuable company in Canada by market cap. Now, investors are just trying to unload their shares. This week, shares hit $13 for the first time since 2009.

VRX is currently trading at $13.99, with shares down 86.27% YTD.

If you think these stocks are bad, there are some even worse. Money Morning Global Credit Strategist Michael Lewitt knows how to make money on failing stocks. But he says these stocks are too terrible to trade...

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