Are the S&P 500's Worst-Performing Stocks Ready to Surge in 2021?

Our economy was left under unprecedented siege in 2020, with unemployment spiking to nearly 15% in April and the stock market falling nearly 30% around the same time . Somewhat surprisingly, the broader stock market recovered by December, with the S&P 500 returning 15.5% for the year.

While the S&P in aggregate provided positive returns, several stocks within the index experienced significant losses. Of the worst-performing stocks throughout 2020, there was a concentration of them in the cruise line and traditional energy sectors. Could these sectors and their stocks see a recovery in 2021? Let's take a look.

The 10 worst-performing stocks in the S&P 500 for 2020 contained a lengthy roster of oil and other traditional energy stocks. Among them were Occidental Petroleum Corporation (NYSE: OXY), Marathon Oil Corporation (NYSE: MRO), Diamondback Energy (NASDAQ: FANG), and ONEOK (NYSE: OKE) -- all losing around 50% of their respective values throughout the year. This should be no surprise, as demand for transportation and travel declined precipitously, thereby affecting the need for oil and other traditional fuel sources. Furthermore, supply levels persisted, further depressing the stocks.

Source Fool.com