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 Mercury General Corporation (NYSE:MCY) 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.
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An auto repair shop with a car in the foreground, demonstrating the need for comprehensive automobile coverage.
Mercury General Corporation (NYSE:MCY)
30-day Decline as of February 3, 2025: 25.5%
Mercury General Corporation (NYSE:MCY) is an insurance company that provides coverage across auto, home, renters, and business insurance lines, with a particular focus on automobiles and homeowners insurance. The stock registered a 25.5% decline in its share price over the past 30 days going from $65.74 to $48.95 on February 3.
The Californian insurance company saw a significant decline in its share price as wildfires continued to burn. The decline came in shortly after state authorities issued evacuation orders for thousands of people residing in the region. Following the decision, Mercury General Corporation (NYSE:MCY) announced that it was prepared to help homeowners, renters, and auto policyholders who had to evacuate.
On January 20, Mercury General Corporation (NYSE:MCY) provided an update on the recent wildfires in Southern California and its latest reinsurance program. The company stated that it received multiple claims and is using aerial images to conclude if properties are categorized as total losses. The report also mentioned that the company had already paid $80 million to policyholders for living expenses and housing contracts.
Overall, MCY ranks 10th on our list of stocks that took a nosedive in January. While we acknowledge the potential of MCY 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 MCY 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.