Today's 3 Worst Stocks

Mixed signals breed mixed results, and today's sideways market reflects just that sort of environment.

With a paucity of concrete indicators, investors weighed positive auto, home, and retail sales against a bleak unemployment outlook and continued signs of slowing growth in Europe. This confluence of disparate signs ended with meager gains in the S&P 500 Index  (SNPINDEX: ^GSPC  ) , as it rose 0.3 points, or less than 0.1%, to close at 1,472. Nonetheless, three S&P 500 stocks stood out as laggards today. 

Organic Tex-Mex restaurant Chipotle Mexican Grill (NYSE: CMG  ) , first and foremost, fell more than 5.5% today as it warned the markets about higher food costs that it expects will ding fourth-quarter earnings. Chipotle stock, which has seen a prodigious rise in the past few years amid rapid expansion and popularity, has gone through some tough times since hedge fund manager David Einhorn announced he was shorting the shares last year because of increasing competition. We'll have to wait until Feb. 5 to see how dramatically Chipotle results are affected by higher input costs. 

A week before, Allegheny Technologies (NYSE: ATI  ) is set to announce fourth-quarter results, its stock took a 4.3% hit. While there was no clear catalyst today, the selling may just have been a continuation of a year-long trend: Allegheny has lost 40% of its market cap in the last year. That, and investors in the steel and specialty metal producer were probably more than a bit underwhelmed with signs of a bleak European growth environment.

Shares in PC powerhouse Dell (UNKNOWN: DELL.DL  ) round out the last of the three big S&P losers Wednesday. Falling 4.3%, the stock was overdue for a correction, after rising 13% on Monday and 7% on top of that on Tuesday. Despite The Wall Street Journal's report that private equity group Silver Lake Partners was willing to offer as much as $13-$14 per share for the company, the level of uncertainty surrounding such a deal leaves shares trading around $12.60.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2200313, ~/Articles/ArticleHandler.aspx, 11/26/2014 9:25:30 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement