25 Stocks to Dump Right Now

By Karee Venema / February 06, 2018 / www.schaeffersresearch.com / Article Link

It's been a bloodbath on Wall Street in recent sessions, with the Dow fresh off its worst one-day point loss ever and the S&P 500 Index (SPX) notching its first back-to-back drops of 1% or more since early 2015. And while history suggests quick bounces for both indexes -- and says this pair of Apple suppliers are two of the best stocks to own after a sell-off --there are several names that may not be ideal for a "buy the dip" trade, including Dow stocks Intel Corporation (NASDAQ:INTC) and UnitedHealth Group Inc (NYSE:UNH).

worst spx stocks after a selloff

Looking back to 1986, Intel stock has been higher just 42% of the time one month out following the last 19 big S&P pullbacks, averaging a loss of 1.8%. Since hitting a 17-year high of $50.85 on Jan. 29, INTC shares have sunk 14% to trade at $43.69 -- erasing Monday's Apple-related intraday gains -- breaching recent support atop their 80-day moving average.

Dow stock UnitedHealth gapped lower last week on news of a high-profile healthcare partnership between Amazon (AMZN), Berkshire Hathaway (BRK.A), and JPMorgan Chase (JPM). UNH shares have now shed 12.5% since their Jan. 29 record high of $250.79, and more losses could be on the horizon. After the last 19 massive SPX drops, UNH stock has been lower 58% of the time one month later, averaging a loss of 2%. This would put the shares below long-term support at the 120-day trendline.

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