The S&P 500 index is down by 18% so far in 2022, but many of the companies that make up the benchmark index have performed much worse. In fact, five S&P 500 stocks are down by more than 60% through the first half of 2022 alone.

This begs the question: Are they worth buying for patient long-term investors now?

The five worst-performing stocks in the S&P 500 in 2022

Company (Symbol)

Year-to-Date Performance

Bath & Body Works (BBWI 2.19%)

(61.8%)

PayPal Holdings (PYPL 1.81%)

(62.1%)

Align Technology (ALGN -0.14%)

(63%)

Etsy (ETSY 0.68%)

(66%)

Netflix (NFLX -0.72%)

(70.6%)

Returns as of 6/29/2022. Data source: YCharts. Chart by author. Parenthesis indicate negative numbers. 

Not surprisingly, three of the five worst performers in the S&P 500 are technology-focused companies, as high-growth tech stocks have generally been the hardest hit in the downturn.

Are these stocks worth a look at current prices?

Bath & Body Works was known as L Brands until recently, with the company adopting the new name after spinning off Victoria's Secret last year. It's important to point out that the company was one of the best-performing stocks of 2021, up 88% for the year.

The stock has been beaten down for several reasons, including recession and inflation fears. While it could be a good long-term value at the current price, it's fair to say that it isn't exactly down for no reason.

PayPal has been hit hard since reporting slower-than-expected user growth in the past couple of quarters. The fintech leader has essentially conceded that its previous long-term active-user base targets aren't going to happen anytime in the foreseeable future. Instead, it has decided to pivot its focus to maximizing its current user base. With over $6 billion in annual free cash flow generation and billions more in the bank, PayPal certainly has the flexibility to invest in its business as it sees fit.

Align Technology disappointed investors with its growth in the first quarter, citing global pandemic headwinds (especially in China), economic weakness and supply chain disruptions, and the war in Ukraine. Revenue grew by 8.8% year over year, and management called it a "tougher-than-expected" environment. Even so, Align sees a major long-tailed growth opportunity, with less than 10% of the orthodontics market today.

Etsy was a major beneficiary of the early days of the pandemic and has grown its business remarkably in recent years. The platform has 5.3 million active sellers and 89.1 million active buyers, up by 112% and 89%, respectively, from pre-pandemic levels. Economic uncertainty could definitely become a drag on Etsy's growth and sales volume in the short term, but the company has been investing heavily in long-tailed growth initiatives and should keep its momentum going when we have a little more economic clarity.

Last but not least, Netflix plunged after its latest earnings report, as the streaming-giant's subscriber base declined for the first time in over a decade. The company is facing intense competition from Disney and other streaming rivals.

With pandemic restrictions largely being lifted in recent months, fewer people are willing to pay for the service. Netflix plans to roll out a cheaper, ad-supported version of its service, which could get it back on track. For the time being, shareholders don't seem too convinced.

Expect a roller-coaster ride for now

As a final thought, it's important to emphasize that nobody knows what any of these stocks will do over the next few weeks or months. If inflation gets worse, or if second-quarter earnings results don't live up to expectations, they all could drop even further in the near term.

Even if no major negative catalysts happen, it's fair to expect all of these to be volatile for the time being. There are solid long-term investment cases to be made for all five of these, but if you invest, make sure you do so with the long term in mind.