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

All 10 market sectors fell today, and all 3 of these stocks were some of the day's worst performers.

Mar 3, 2014 at 7:26PM
Longview

With a nervous eye on the worsening geopolitical conflict between Russia and Ukraine, stocks sold off heavily today. All 10 market sectors lost ground; Wall Street fears that the U.S. response to Russia's invasion of Ukraine's Crimean Peninsula could negatively affect global commerce, and that's not inconceivable. Not only could economic sanctions hurt the flow of goods and services between the U.S. and Russia, but if it reached the point of U.S. military intervention, the economic risks couldn't immediately be foreseen. Recognizing the existence of unknowable risks, investors headed for the exits, and the S&P 500 Index (SNPINDEX:^GSPC) lost 13 points, or 0.7%, to end at 1,845. 

While losers outnumbered gainers by a 2-to-1 margin in the stock market today, some stocks felt the pain more harshly than others. Avon Products (NYSE:AVP) and the two stocks below are such examples. Shares of the beauty products company lost 2.8% Monday, perhaps because investors realize the significant challenges Avon still faces. The entire business model depends on the size and capability of Avon's sales representatives, and last year their fleet size fell by 15%. With North American sales halved since 2007, sales still falling in the most recent quarter, and a net loss in the fourth quarter, things don't look great right now. Thankfully, Avon is popular with the Hispanic community, which should be a boon to its revenue as U.S. demographics change over time.

International Game Technology (NYSE:IGT), which largely lives and dies with the success of the casino industry, saw shares slump 2.5% today. Not only is International Game Technology in the traditional business of offering products like video poker and slot machines, but it's at the forefront of social, mobile, and online gaming, all of which are enormous avenues for growth in the industry going forward. Unfortunately for IGT, its $500 million investment in social gaming company Double Down in 2012 is starting to look like a dud, with Double Down's founders leaving IGT earlier this year, just as the company announced an earnings hit from the two-year-old acquisition.

Lastly, shares of Cliffs Natural Resources (NYSE:CLF) shed 2.4% today. Iron ore and coal producers like Cliffs Natural often, by their very focus, derive a substantial portion of their revenue from steel producers, who use the aforementioned materials to forge steel. Unfortunately, if these materials companies aren't sufficiently diversified, they can essentially morph into proxy investments in the steel industry, and Cliffs investors got a painful reminder of that last week. Shares slumped nearly 5% last Tuesday when reports surfaced that Asian lenders were starting to loan less money to real estate projects in an effort to discourage over-speculation, sending steel prices lower and hitting Cliffs shareholders in the process.

Say goodbye to "Made-in-China"
For the first time since the early days of this country, we're in a position to dominate the global manufacturing landscape thanks to a single, revolutionary technology: 3-D printing. Although this sounds like something out of a science fiction novel, the success of 3-D printing is already a foregone conclusion to many manufacturers around the world. The trick now is to identify the companies -- and thereby the stocks -- that will prevail in the battle for market share. To see the three companies that are currently positioned to do so, simply download our invaluable free report on the topic by clicking here now.

John Divine has no position in any stocks mentioned. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers