With tech seeing better days and disrupting newer industries, we look at the stocks that have underperformed in 2018. Yes, the markets have been choppy this year after a spectacular run in 2017. Concerns over trade war with China have escalated and negatively impacted several stocks. However, the S&P 500 is still up by over 7.5% this year. While some stocks might be trading at attractive valuations, investors need to be cautious while allocating funds to them.

Frontier Corp.

Shares of Frontier Corp. have declined 21.3% in 2018 after falling 84% last year. The communication services firm has been struggling with declining sales with revenue expected to fall from $9.12 billion in fiscal 2017 to $8.59 billion in 2018, $8.2 billion in 2019 and $7.9 billion in 2020.

Frontier Corp. is expected to post a net loss of -$1.68 per share in 2018. The company continues to lose video subscribers due to the rapid growth of online streaming services. In Q2 2018, the company lost 40,000 video customers. Frontier also lost broadband customers in the last quarter driven by customer migration to larger cable operators. Although the average 12-month analyst price target for Frontier is 18% above its current price, investors should be cautious while investing in this stock.

Windstream Holdings

Similar to Frontier Corp., Windstream Holdings has also seen its stock depreciate significantly since the start of 2017. Last year, Windstream shares fell 73% and the stock is further down by 44% in 2018. This communications services firm is expected to experience a revenue decline of over 4% in 2018.

Analysts also expect its earnings per share to fall from -$8.15 in 2017 to -$11.23 in 2018. In June 2018, Citigroup analyst Michael Rollins downgraded Windstream stock from “hold” to a “sell” as Windstream’s operating position is precarious and fraught with financial risks.

Windstream has a total debt of $10.74 billion and approximately $60 million in cash and analysts have now started to question the company’s long-term sustainability. Windstream has an average price target of $6.46 which is 26%  higher compared to its current price of $5.14.

Dish Networks

Shares of Dish Networks have also declined over 26% this year after falling close to 18% last year. Cord cutting has led to a decline in customers for Dish Networks, which is expected to lead to a 5% year-over-year decline in revenue during 2018 and a 4.6% decline in 2019.

Dish Networks reported Q2 results and lost 192,000 satellite customers in their latest quarter. However, the company has an online streaming service known as Sling TV and this vertical added 41,000 subscribers in Q2 2018. Analysts are optimistic about this stock and Dish Networks is currently trading at a discount of 51% to analyst price target estimates.

GoPro

GoPro’s stock has declined significantly since 2014. GoPro became a publicly traded firm in June 2014 and its stock price rose from $35.76 since the IPO (initial public offer) to almost $87 in October 2014. The shares have since been in a freefall. GoPro stock fell 50% in 2016, 13% last year and has declined over 18% in 2018. GoPro has been struggling with device sales over the past few quarters. The company also had to discontinue manufacturing its drone after lackluster demand from customers.

GoPro operates in a very niche market with a high product price point. GoPro now intends to increase sales after launching devices targeting several consumer segments. GoPro is currently trading at $6.20 which is higher than the average price estimate of $6.09. Although GoPro might return to revenue growth in fiscal 2019, investors need to take a wait and watch approach with regards to this stock.

Symantec

Shares of Symantec have declined close to 30% in 2018. In early August, shares fell 9% after the firm reported a weak outlook for fiscal Q2 2019. Symantec estimated revenue between $4.67 billion and $4.79 billion in Q2 2019 which was below analysts estimates of $4.84 billion.

In May 2018, the company launched an internal investigation after a former employee raised concerns over the disclosure of financial results which also dragged the share price lower. Symantec faces competition from cybersecurity leaders including Cisco, Palo Alto Networks, Fortinet, and FireEye. This will result in a revenue decline of almost 5% for Symantec in fiscal 2019. The company’s earnings per share is estimated to fall 11% year-over-year to $1.51 in fiscal 2019. Symantec is trading at a discount of 11% to analyst estimates as well.

Fitbit

Shares of Fitbit have declined marginally by 0.2% this year after falling 22% in 2017. Similar to GoPro, Fitbit is also impacted by declining device sales coupled with competition from niche and established players including Apple, Xiaomi, Garmin, and Fossil. Fitbit shares have declined significantly from $47.17 in July 2015 to its current price of $5.70.

Fitbit has managed to lose market share over the last few quarters and the company’s device sales have fallen despite robust growth in the global wearable market. Though Fitbit’s Versa which is its latest product has already sold over a million units, analysts and investors might not be too confident about entering the stock at current levels.