Well, well, well. Here we are at the end of 2025, and if you’re anything like me, you’re probably looking at your portfolio like it’s that junk drawer in your kitchen – you know there’s some good stuff in there, but also a lot of random crap that needs to go.
Enter the January Effect, aka the market’s version of New Year’s resolutions. Every January, fresh money floods into the market faster than people abandon their gym memberships. Fund managers rebalance their portfolios, bonuses get deployed, and suddenly everyone’s feeling optimistic about their financial future (until February reality hits, but that’s another story).
The thing is, this annual cash injection tends to lift the boats that are actually seaworthy. The leaky ones? They just sink faster. So before we pop champagne and pretend 2026 will be different, let’s talk about the 10 stocks that need to get the boot from your portfolio.
According to some serious number-crunching (we’re talking Stock Grader levels of analysis here), these companies are currently sporting grades that would make your high school guidance counselor concerned:
The Hall of Shame:
- Clorox (CLX) – Even bleach can’t clean up this mess (Grade: F)
- DraftKings (DKNG) – Betting against this one is the safest wager (Grade: D)
- Dick’s Sporting Goods (DKS) – Not exactly scoring goals lately (Grade: D)
- CarMax (KMX) – This ride needs to be traded in (Grade: F)
- Lowe’s (LOW) – Living up to its ticker symbol (Grade: D)
- Meta (META) – The metaverse called, it wants its hype back (Grade: D)
- Starbucks (SBUX) – This coffee’s gone cold (Grade: D)
- Stanley Black & Decker (SWK) – These tools aren’t working (Grade: D)
- Target (TGT) – Missing the mark entirely (Grade: F)
- U-Haul (UHAL) – Time to help this one move out (Grade: F)
Now, I know what you’re thinking. “But wait, some of these are household names!” And you’re right. Meta was supposed to be the future. Starbucks has been America’s caffeine dealer for decades. Target? Come on, who doesn’t love Target?
Here’s the brutal truth: brand recognition doesn’t pay your bills. Fundamentals do. And right now, these companies are fundamentally challenged – whether it’s earnings growth that’s flatter than day-old soda, or business models that are about as relevant as a Blockbuster membership card.
The market in 2026 is going to be ruthless. It’s not enough to be “okay” or “getting by.” You need companies with rock-solid fundamentals, growing earnings, and business models that make sense in today’s world.
So here’s your homework for the last few trading days of 2025: Take a hard look at your portfolio. If you’re holding any of these underperformers, consider this your friendly neighborhood reality check. Sometimes the best investment decision is knowing when to cut your losses and move on.
After all, there’s no participation trophy in investing – only profits and lessons. Make sure you’re collecting more of the former in 2026.