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

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.


Read/Post Comments (1) | 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.

  • Report this Comment On March 04, 2014, at 4:54 PM, whyaduck1128 wrote:

    For a site that is supposed to be about investing for the long term, The Fool certainly seems to be reacting a lot to short-term, even one-day swings in the market.

Add your comment.

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: 2862479, ~/Articles/ArticleHandler.aspx, 10/31/2014 1:47:32 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...

Today's Market

updated 4 hours ago Sponsored by:
DOW 17,195.42 221.11 1.30%
S&P 500 1,994.65 12.35 0.62%
NASD 4,566.14 16.91 0.37%

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

10/30/2014 4:30 PM
^GSPC $1994.65 Up +12.35 +0.62%
S&P 500 INDEX CAPS Rating: No stars
AVP $9.97 Down -0.99 -9.03%
Avon Products, Inc… CAPS Rating: **
CLF $10.50 Up +0.28 +2.74%
Cliffs Natural Res… CAPS Rating: ***
IGT $16.19 Down -0.10 -0.61%
International Game… CAPS Rating: ****

Advertisement