Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Today's 3 Worst Stocks

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although fears about Cyprus from earlier in the week have largely faded, Wall Street's new concern is Italy, a much larger economy whose political future is still up in the air. But that wasn't enough to hurt stocks too badly today; the S&P 500 Index (SNPINDEX: ^GSPC  ) fell less than 0.1% to close just points away from an all-time record. Still, there were some major losers in today's market, with one laggard in particular taking a severe hit.

Cliffs Natural Resources (NYSE: CLF  ) cratered 13.9% to safely secure its place as the absolute worst performer in the 500 stock index. As is often the case, "If you live by the analyst, you die by the analyst," and the uncertain future of Cliffs and the entire U.S. iron ore market means analyst opinions carry extra weight. Today's brutal downgrade from Morgan Stanley (NYSE: MS  ) cites, in essence, a global business nightmare: Declining iron ore prices, weakening reserves in Asia, and high costs in Canada make for an ominous trifecta of downward catalysts.

Coming in a distant second, telecom services provider Frontier Communications (NASDAQ: FTR  ) fell 2.8% Wednesday. There's just not a lot going for this company right now; Fitch's downgraded the stock last week, short interest is becoming more and more pronounced, and with a high debt load and a 10% annual dividend payout, you have to wonder how sustainable those cash outflows are.

Lastly, shares of Dollar General (NYSE: DG  ) slumped 2.4%, just days after the discount retailer rose following an earnings beat on Monday. The catalyst today came in the form of a 30 million-share secondary offering by major investors that threaten to flood the market with sell orders. Though sales in the most recent quarter didn't blow anyone away, Dollar General has managed to do pretty darn well for itself throughout the tough economy. So while the stock may have stumbled today, the longer-term health of the business -- it went from a net loss in FY 2008 to a $766 million profit in FY 2012 -- isn't too shabby.

Read/Post Comments (1) | 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.

  • Report this Comment On March 28, 2013, at 9:58 AM, VeryWiseInvestor wrote:

    Yes, John, FTR's big loss would be of concern, IF it wasn't just $0.19 in real dollars. And Fitch's downgrade might be troublesome IF S&P didn't have it at 4 stars. And let's not forget those all knowing short sellers. They've had such a good record in 2012 and 13. NOT.

    Do some research before you burb your opinion next time.

Add your comment.

Compare Brokers

Fool Disclosure

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: 2335522, ~/Articles/ArticleHandler.aspx, 9/30/2016 6:22:25 PM

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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 5:01 PM
^GSPC $2168.27 Up +17.14 +0.80%
S&P 500 INDEX CAPS Rating: No stars
CLF $5.85 Down -0.01 -0.17%
Cliffs Natural Res… CAPS Rating: ***
DG $69.99 Up +0.67 +0.97%
Dollar General CAPS Rating: ***
FTR $4.16 Down -0.09 -2.12%
Frontier Communica… CAPS Rating: ***