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



Why LinkedIn, NCR, and Cigna Tumbled Today

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 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.

Friday delivered great news for many stock investors, as major market averages closed the week with gains of more than 1% to wipe out the losses from Monday's market plunge. Yet, even though most stocks benefited from today's optimism, LinkedIn (NYSE: LNKD  ) , NCR (NYSE: NCR  ) , and Cigna (NYSE: CI  ) weren't so lucky, with sharp declines even on a positive day.

LinkedIn (LNKD) fell 6% despite posting impressive revenue growth during its most recent quarter. Sales rose 47%, but the business social-media giant said that its growth rate would slow to an estimated 33% during the current year, leading some to believe that LinkedIn's share price is too high for revenue to decelerate at such a rapid pace. Yet, the big question for LinkedIn is whether its anticipated rise in spending will pay off in long-term growth, or prove to be a wasted investment. If the net result of LinkedIn's efforts is to shift income into 2015, then today's losses could provide a smart time to buy into the company's long-term growth story.

NCR tumbled 8% after issuing a mixed earnings report last night. The company said that operating income adjusted for pension effects rose 22% from the year-ago period, but revenue increases of just 2% fell short of what investors had wanted to see. NCR's retail and hospitality segments performed especially well, but some unfavorable trends in its financial-services division held the company back. Meanwhile, NCR's future guidance was also a mixed bag, with revenue guidance looking solid, but adjusted earnings expected to come in below investors' expectations. The results show that NCR has more work to do to evolve into a full-service enterprise-solutions specialist.

Cigna (CI) dropped 9% after the health-insurance company also failed to meet earnings expectations. At the same time that costs of its private Medicare insurance business rose, Cigna expects reimbursement rates for its Medicare Advantage plans to fall in the coming year, leading it to issue earnings guidance for 2014 that were 2% to 7% below what investors had expected to see. With Cigna only projecting 1% to 2% growth in customer counts in 2014, it's apparent that the Affordable Care Act and other initiatives haven't delivered the rise in popularity in insurance that some shareholders had expected to see.

Is this your chance to get in on a huge opportunity?
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one in one of the stocks listed above. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

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.

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: 2829570, ~/Articles/ArticleHandler.aspx, 8/29/2015 3:31:40 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...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 6 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

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

8/28/2015 4:00 PM
CI $137.87 Down -0.43 -0.31%
Cigna Corporation CAPS Rating: ****
LNKD $183.94 Up +1.30 +0.71%
LinkedIn CAPS Rating: **
NCR $25.16 Up +0.18 +0.72%
NCR CAPS Rating: ****