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20 Worst Performing S&P 500 Stocks in 2023

Hamna Asim
29 min read

In This Article:

In this article, we discuss 20 worst performing S&P 500 stocks in 2023. If you want to skip our detailed analysis of the stock market outlook, skip over to 5 Worst Performing S&P 500 Stocks in 2023. 

Wall Street analysts are still largely split when it comes to their forecasts for the S&P 500 index, despite the year being halfway through. The difference in opinion among analysts has grown even more since the benchmark index emerged from its lengthiest bear market since 1948. Goldman Sachs raised its end of year target for the S&P 500 from 4,000 to 4,500, noting that their 2023 earnings-per-share projections remain unmodified. Goldman Sachs speculates that a soft landing will be delivered by the Federal Reserve, despite the brutal interest rate hikes over the last year to counter inflation. The firm believes that market sectors that are underperforming so far have the potential to keep pace with market leaders. The mega-cap tech stocks are dominating the market this year, and the profits from artificial intelligence can potentially prolong the current stock market upswing. On the other hand, Morgan Stanley reiterated its negative stance on the stock market, noting that the bear market is not over and an earnings recession is projected to hinder any further gains. Michael Wilson, the chief equity strategist at Morgan Stanley, expects the S&P 500 to sink to 3,900 by year-end. 

On May 23, Reuters polled 43 Wall Street strategists and they believe that the S&P 500 index is expected to experience a decline by the end of 2023. These strategists think that investor sentiment will be negatively impacted due to high interest rates, banking failures, and disappointing earnings. They expect the S&P 500 index to close at 4,150 at the end of 2023. The substantial gains this year are predominantly attributed to the growth and technology sectors, which led to significant market rallies and offset some of the instability caused by collapsing regional banks. According to Jonathan Golub, head of U.S. equity strategy and quantitative research for Credit Suisse, the S&P 500 will likely close at 4,050 at the end of this year. He told Reuters: 

"It's just a very uninspiring, low-growth backdrop, with tight monetary policy and earnings that will be down this year versus last." 

Data from Refinitiv suggests that the forward 12-month price-to-earnings ratio of the S&P 500 is presently 19, compared to 17 recorded at the end of 2022 and exceeding the long-term average of approximately 16. UBS Global Wealth Management has a year-end S&P 500 target of 3,800, and Nadia Lovell, a senior U.S. equity strategist at UBS, said: 

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