Today's 3 Worst Stocks in the S&P 500

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The S&P 500 Index (SNPINDEX: ^GSPC  ) , though trading more or less sideways throughout the day, managed to end in the black Monday, stringing together a fourth straight day of gains. With Wall Street looking ahead to the thick of earnings season and the debt ceiling/shutdown crisis temporarily behind us, the benchmark index added 0.2 points, or less than 0.1%, to end at 1,744, an all-time record close. From where I sit, it's hard to imagine how corporate America could possibly be healthier after a 16-day government shutdown than it was before, but earnings season should give us a better idea about how justified current market levels are.

One S&P 500 stock that wasn't rewriting history books was J.C. Penney (NYSE: JCP  ) , which continued its recent death spiral, losing 8.3% on Monday. Actually, there was something historical about J.C. Penney shares today: They ended yet again at lows not seen in over 30 years. While there may be a flip side to every coin, the proverbial J.C. Penney specie is defaced on both sides and in danger of being recalled from circulation altogether. It's quite possible that talks of bankruptcy and $1-per-share price targets are overblown, but the famous Wall Street admonition warning investors against trying to catch a falling knife has never been truer than now.

Another iconic American brand, Goodyear Tire & Rubber (NASDAQ: GT  ) also saw its shares plummet Monday, as the stock slumped 6.7%. Thankfully, Goodyear's future is in far less jeopardy than J.C. Penney's, but that didn't stop Deutsche Bank from downgrading the stock to "hold" from "buy." While the sun certainly doesn't rise and set with analyst opinions, well-known research outfits do have the ability to move stock prices. In this case, the crystal ball displaying Goodyear's future margins fogged up, but with a strong name brand, consistent earnings potential and a small dividend, this stock is far from doomed. 

Lastly, Halliburton (NYSE: HAL  ) shares slipped 3.5% as the company's third quarter failed to impress investors. Dismissing the fact that the $46 billion oil services giant boosted year-over-year earnings by 24%, global revenue advanced just 5% as competition in North American markets intensified. Halliburton's massive scale, international diversification, and industry experience should reassure long-term investors that today's setback isn't reflective of Halliburton's staying power. 

Good things take time: 3 stocks to own forever
Odds are you know one of them. They travel the globe for weeks at a time. They have the first tee time tomorrow morning, and a five-star reservation for dinner. But if you asked what these people did for a living, chances are you'd be surprised. You see, these aren't doctors, lawyers, or Wall Street tycoons.These are everyday Americans with everyday jobs, now living the life of their dreams. 

And many of them can point to a single investing edge that helped them get there. It takes only minutes to learn, but it rewards its followers for a lifetime. Best of all, the details are clearly spelled out for you in The Motley Fool's special free report "3 Stocks to Own Forever." But don't let this title fool you. The most important information inside isn't a stock pick. Click here now for free access.


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

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.

DocumentId: 2692633, ~/Articles/ArticleHandler.aspx, 4/17/2014 7:10:58 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