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

From energy to health care, natural gas to allergies, today's 3 laggards couldn't hang with the rest of the stock market

Mar 5, 2014 at 7:26PM
Longview

The S&P 500 Index (SNPINDEX:^GSPC) pulled back ever-so-gently from its record close yesterday, as a gauge of U.S. private sector employment came in below expectations. The ADP employment report, often considered an indicator for the Labor Deartment's monthly nonfarm payrolls report, showed soft jobs growth in February. That said, the Federal Reserve's "Beige Book," which is released eight times a year and details current economic conditions, blamed low economic growth in early 2014 on the weather. Let's hope it's the weather. Unsure whether to blame Mother Nature or accept the idea of a poor labor market, the S&P 500 finished sideways, losing 0.1 points, or 0.01%, to end at 1,873. 

ExxonMobil (NYSE:XOM) shareholders had no trouble figuring out which way the stock should go today, sending shares down 2.8% in trade. Exxon committed to cutting costs this year, forecasting cost reductions that will run all the way through 2017. Cost reductions weren't behind today's slump, though -- lousy production rates were. Exxon's projected 2014 oil and natural gas production is expected to remain flat from last year; not only that but the company expects to drill in the Russian Arctic later in 2014, plans that could be put off if the U.S. imposes sanctions against Russia for its hostility toward Ukraine. 

Pioneer Natural Resources (NYSE:PXD), a Texas company that produces oil and natural gas, saw shares lose 2.8% on Wednesday. The loss is mostly attributable to the fact that Wednesday was an awful day to be in the oil and gas business -- the sector was the worst performing of the 10 market sectors. That's because the price of oil fell 1.8% as tension from the Russia-Ukraine conflict continued to subside; natural gas prices also fell 3% today. Natural gas's relative affordability due to the U.S. energy boom in recent years is one reason Exxon made the conscious decision to decrease its natural gas production in 2014, as it waits for the supply glut to disappear. 

Lastly, shares of $21 billion generic pharmaceutical company Mylan (NASDAQ:MYL) slipped 2.4% today. Pops and drops like today's are nothing out of the ordinary for Mylan investors, who -- when including last week's 9% jump after an exemplary earnings call -- have seen shares jump 80% in the last year alone. Mylan's gross margins in the fourth quarter were great at 51%, and revenue growth was driven by the company's partnership with Pfizer, in which Mylan markets the EpiPen, a product used to treat severe allergies. As for today's decline, it's nothing for investors to lose their heads over.

3 stocks for America's next energy boom
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

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