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Barron’s 2023 portfolio of 77 recommended stocks had an average total return of 9.9%, lower than their respective benchmarks which returned 12.7%.
In its article examining the performance of stocks targeted by bullish articles, Barron’s noted that the choice just one of the magnificent 7 – Tesla (TSLA) – was one of the main reasons for the underperformance.
Picks are measured against the S&P 500 Index (NYSEARCA:SPY) (IVV) (VOO), the S&P 400 Midcap (MDY) or the Russell 2000 (IWM), depending on market capitalization.
Tesla was the best performing company on the list, with a total return of nearly 120% since it was mentioned in the article. Followed by Frontier Communications (FYBR) up 77%, Ferguson (FERG) up 55%, SharkNinja (SN) up 49% and Ferrari (RACE), up 43%.
Among the losers, Hertz (HTZ) was the worst, down 44%, followed by Pfizer (PFE), down 32%. The article called PFE a value choice that was economical for a reason.
Net Power (NPWR) fell 31%, Restaurant Payment Processing Toast (TOST) fell 22% and Topgolf Callaway (MODG) fell 17%.