We recently published a list of 15 Stocks That Took a Nosedive in January. In this article, we are going to take a look at where Abercrombie & Fitch Co. (NYSE:ANF) stands against other stocks that took a nosedive in January.
Historically, the S&P 500’s performance in January sets the pace for the rest of the year. According to Jared Blikre, Yahoo Finance Markets Editor, the S&P 500 returned nearly 17% in January, which is pretty impressive because a positive January usually translates as a positive year for the markets. Jared also added that while the energy and utilities sectors are lagging, the communication services and healthcare segments are showing signs of strength.
At the same time, while the S&P 500 remained positive at the end of January, some stocks declined due to various reasons especially the launch of the Chinese OpenAI rival, DeepSeek, and new regulations amid the new administration.
15 companies in diverse sectors such as the financials, biotechnology, healthcare, technology, and energy industries, declined due to unsupportive market conditions, macroeconomic environment, and other factors. That said, let’s take a look at the 15 stocks that took a nosedive in January.
To come up with the 15 names, we only considered stocks with a market capitalization of more than $2 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the 15 with the largest 30-day decline from January 3, 2024, to February 3, 2025.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a customer trying on a piece of apparel in the retailer’s spacious dressing room, emphasizing the company’s focus on personal care and experience.
Abercrombie & Fitch Co. (NYSE:ANF)
30-day Decline as of February 3, 2025: 27.5%
Abercrombie & Fitch Co. (NYSE:ANF) is a lifestyle retailer based in the United States. The stock went from $158.92 on January 3, to $115.29 on February 3, a decline of 27.5%. While the stock registered a general downward trend during the month, ANF saw its stock price dwindle significantly between January 10 and January 13.
On January 14, analyst firm, Raymond James, lowered its price target for Abercrombie & Fitch Co. (NYSE:ANF) from $180 to $165, keeping an outperform rating on the stock. The decision to decrease the price target is attributed to ANF’s revenue beat not being strong enough and the margin guidance being significantly lower, despite the company raising its Q4 revenue guidance.
Similarly, on January 15, Alex Straton, an analyst at Morgan Stanley lowered his price target on Abercrombie & Fitch Co. (NYSE:ANF) from $149 to $139, keeping an equal weight rating on the stock. The analyst took this decision after ANF decided to raise its Q4 guidance but maintained its operating margin outlook, which is quite low. Straton emphasized that the decision fuels the bearish outlook on the company, explaining why the stock declined significantly in the middle of January.
Overall, ANF ranks 8th on our list of stocks that took a nosedive in January. While we acknowledge the potential of ANF to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ANF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
