DJIA Stocks Down More Than 25% From Highs (AA, BA, BAC, CAT, CSCO, DIS, GE, HD, HPQ, JPM)

The market has brutalized many great companies and we are seeing the mayhem reach a cycle-peak in the VIX if the history of the market holds up after hitting 48.0 yesterday during the 600+ point DJIA drop.  What the catalyst will be that saves the markets is still not clear, but we wanted to identify the largest stocks in DJIA components that are off by 25% and more from their highs of the year.

We have shown how far off of highs these are today and added in trading ranges, color if applicable, a forward P/E ratio and the dividend. Most of these are still expected to show growth in the year ahead, at least as of today based on ‘official’ estimates.  It is hard to simply evaluate value based upon sell-offs, but when the markets turn the stocks which rally the most are generally the ones that sold off the most.

Alcoa Inc. (NYSE: AA) kicked off earnings season with a so-so report and it is still maintaining a market double by 2020 unless the last month changed things.  At $11.33 this is down 38.66% from recent highs with a 52-week range of $9.92 to $18.47.  The forward P/E ratio is and the dividend is a paltry 0.9%.

Boeing Company (NYSE: BA) hit $58.71 (almost a low this year), down 27.2% from the highs and a 52-week range is $58.61 to $80.65. The forward P/E ratio is 8 and the dividend is %.

Bank of America Corporation (NYSE: BAC) may be the true culprit in America tanking stocks and the stock hit a 2-year low.  Dick Bove of Rochdale just defended its balance sheet this morning on CNBC without saying “BUY IT!” as he thinks stocks in general will fall more.  Where the bottom is anyone’s guess, but the stock is the worst DJIA component.  At $6.51, this is down 57.5% from its 52-week high. The forward P/E ratio is 5 and the dividend is a paltry 0.5%.

Caterpillar, Inc. (NYSE: CAT) is supposed to be part of the global growth trade, too bad the global growth may be gone.  At $82.60, this is down 29.13% from recent highs and the 52-week range is $63.34 to $116.55. The forward P/E ratio is 8.8 and the dividend is 2.0%.

Cisco Systems, Inc. (NASDAQ: CSCO) is just about to report earnings and it is hard to find anything good at all going on in enterprise communication equipment.  BUybacks be damned here since they haven’t worked.  At $13.94, this is down 43.95% from recent highs as the 52-week range is $13.94 to $24.87. The forward P/E ratio is 8 and the dividend is 1.6%.

The Walt Disney Company (NYSE: DIS) is also soon to report earnings and it has fallen off the track after some real and solid growth.  At $33.03, the Mouse House is down 25.51% from highs as the 52-week range is $31.55 to $44.34. The forward P/E ratio is 11 and the dividend is 1.1%.

General Electric Company (NYSE: GE) has been brutalized and at $15.43 it is now down 28.73% from the year highs with a 52-week range of $14.25 to $21.65. The forward P/E ratio is 9.5 and the dividend is 3.6%.

Home Depot, Inc. (NYSE: HD) can’t find any love and who can blame that with ties to rebuilding and repairing housing when housing just stinks.  At $28.93m this is down 26.54% from highs and the 52-week range is $27.10 to $39.38. The forward P/E ratio is and the dividend is %.

Hewlett-Packard Company (NYSE: HPQ) has its share of problems and it probably wished the “Hurd” incident would have just been overlooked.  At $30.81, H-P is down 37.62% from highs and the 52-week range is $30.73 to $49.39. The forward P/E ratio is 11 and the dividend is 3.3%.

JP Morgan Chase & Co. (NYSE: JPM) is not supposed to be slapped as hard as it is being slapped and that is write-down and BofA-related most likely.  Rising tides lift all ships, and sewage in a DJIA component makes the stench increase even at top rivals.  At $34.06, shares are down by 29.57% from highs with a 52-week range of $33.69 to $48.36. The forward P/E ratio is 6 and the dividend is 2.7%.

The reality here is simple… The debate is on the we are in the next recession or the double-dip recession.  Some sectors are in a recession while some are still expecting growth.  If the economy manages to hold up, these share price discounts will have turned out to be the biggest bargains in years.  If the recession continues to gain steam, let’s just say that ‘value’ doesn’t really matter.

JON C. OGG