The US equity market’s rally off the March lows has spawned moves over a few weeks in individual stocks that would normally take years to play out. Within the Russell 3000 as a whole, approximately 4% of the stocks in the index (125) have more than doubled from their closing levels on 3/23. At face value, that’s an extremely impressive reading. However, if you dig a little, you would also find that more than half of those stocks that have doubled are still down YTD. Amusement parks may still be closed, but who needs them when you have a roller coaster ride like the stock market.
There’s not enough space to list each of the stocks that have doubled from their closing levels on 3/23, so in the interest of space, the table below lists the 25 stocks in the Russell 3000 with market caps of $2.5 billion or more that have doubled since 3/23 sorted by market cap. The largest of the ‘doublers’ listed is Valero (VLO) which just barely made the cut gaining ‘only’ 102.9%. Behind Valero (VLO), the only other doublers with market caps of more than $10 billion are Twilio (TWLO), Moderna (MRNA), Wayfair (W), and Carvana (CVNA). Wayfair is also the top-performing stock on the list with a gain of over 500%! We’re not sure which, but at some point in the last two months, the market’s valuation of W was way off the mark. To put Wayfair’s YTD move in perspective, though, even with a 500%+ rally, the stock is still up only 112% YTD.
Just as we pointed out with regards to the entire universe of stocks that have doubled since 3/23, a large number of stocks listed below are also down YTD. Even the largest of the doublers – Valero – is still down 29.3% YTD. Looking through the list, most of the other stocks listed that are still down YTD are from the Energy sector. Below the table, we have also included charts of each stock (except Bill.com which hasn’t been public for six months). As shown, many of the stocks listed are trading at extremely overbought levels after their significant rallies, and investors would probably be best served to not chase these names from here. For clients with access, we have also created a custom portfolio, so you can track these names over time to see how they digest and consolidate the recent surges. Start a two-week free trial to Bespoke Institutional to access our Custom Portfolios, interactive tools, and full library of research.