INTC & 7 Other Dormant Stocks Springing Back To Life

INTC & 7 Other Dormant Stocks Springing Back To Life
8 stocks dead for decade spring to life

by Matt Krantz

Pity the poor Intel (INTC) investor no more. Although the computer chipmaker's stock has been dead money for a decade, shares are roaring back to life.

Patience is looking to be a virtue for investors in dead-money stocks that are only now shaking off their malaise. Intel is just one of eight stocks in the Standard & Poor's 500 (SPX) (SPY) coming into the year that had moved up or down less than 20% during the previous 10 years, but that are now up 20% or more just this year alone, according to a USA TODAY analysis of data from S&P Capital IQ.

Some of the decade-dead stocks coming alive aren't just creeping back to life, but springing to action. Intel investors are finally enjoying some tech-stock-like sparks. Shares of Intel came into the year having lost 19% of their value the previous 10  years. That must have been especially painful since the S&P 500 was up a staggering 66% during that time.

Many investors bailed. But those that have hung are starting to get a little bit of relief. Shares of Intel are up 22% this year, a nice showing relative to the 6.8% gain of the S&P 500. Investors were able to enjoy more of a increase when Intel rallied after earnings this week.

But while Intel is one of the best-known examples of a dead-money stock coming alive, it's not necessarily the most dramatic. Consider Newfield Exploration (NFX), a energy exploration company. Shares of the stock rose just 10% over the decade coming into this year. So far this year, though, shares are up 68%. The company reported a first quarter adjusted profit of 2 cents a share, topping estimates by 5%. Analysts see more growth ahead, and rate the stock "outperform."

8 Stocks Coming Back To Life Table

But while these stocks might be coming alive now, that doesn't necessarily mean analysts think the momentum after doing nothing for a decade can continue. The average Wall Street analyst has a "hold" rating on half of the eight stocks. That includes Intel, despite its recent stock and profit momentum.

Sometimes, though, analysts are slow to upgrade stocks that have been disappointing for so long. Maybe some of these stocks will show they can put the past decade even further behind them.

Courtesy of usatoday.com