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



Why Jabil Circuit, Occidental Petroleum, and International Game Technology Are Today’s 3 Worst Stocks

All three major indexes finished higher on Thursday, as strong numbers from the U.S. manufacturing sector gave the stock market a boost. With worries about the Russia-Ukraine conflict waning but still in the air, markets have advanced this week on cautious investor optimism. But investor optimism was nowhere to be found for Jabil Circuit, (NYSE: JBL  ) , Occidental Petroleum (NYSE: OXY  ) , and International Game Technology (NYSE: IGT  ) today; each finished as one of the worst-performing stocks in the entire S&P 500 Index (SNPINDEX: ^GSPC  ) . The S&P itself finished 11 points, or 0.6%, higher, at 1,872.

Jabil Circuit shares shed 2.9% as Wall Street recoiled at the negative impact that cutting ties with BlackBerry is having on its business. Now, to be fair, BlackBerry made up about 12% of Jabil Circuit's sales before Jabil decided to "disengage" from the beleaguered phone maker. Shareholders have known for some time that BlackBerry's death spiral would also be painful for its suppliers, and that knowledge was built into the stock price. That said, the company's revenue miss yesterday highlights just how difficult it will be for Jabil to replace that business.

Occidental Petroleum fell for a second straight day Thursday as investors continued to react to the city of Carson, California's brand spankin' new drilling ban. Shares lost 2.3% today as fallout from the decision continued. Occidental plans to spin off its California business -- in part because of the difficult regulatory environment in the state -- and the city of Carson imposed a moratorium on new drilling, and suspended talks with Occidental about plans for 200 additional wells until the spinoff is complete. The City Council cited concerns about controversial "fracking" techniques in its decision, apparently not buying Occidental's claim that no such techniques would be used in the wells. 

Finally, International Game Technology fell 2.2% on Thursday. The company makes slot machines and other high-tech gaming products, and has also invested heavily in mobile and social gaming in recent years. Today's slump isn't as bad as it appears; about half of the decline can be chalked up to IGT shares going ex-dividend today. Ex-dividend dates have a downside bias, as some short-term investors sell their shares with the assurance that they'll still receive the next quarterly dividend, anyway. Of more concern to the long-term picture, however, is the future of social gaming, and the company's ability to cash in on the potentially lucrative trend. IGT ponied up $500 million to acquire social gaming company DoubleDown Casino in 2012, only to see its founders leave the company earlier this year as the acquisition's success soured.

Three Stocks for America's next energy boom
California may provide its share of challenges for the drillers like Occidental Petroleum, but 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. 

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: 2884241, ~/Articles/ArticleHandler.aspx, 8/29/2015 11:58:34 PM

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...

John Divine

Fool since 2012, unique fingerprints since birth. Age 7: Put lifetime savings ($18.37!) in the bank, became disillusioned with low interest, and a fascination with the stock market was born.

Today's Market

updated 1 day 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 4:55 PM
^GSPC $1988.87 Up +1.21 +0.06%
S&P 500 INDEX CAPS Rating: No stars
IGT $16.99 Up +0.23 +1.37%
International Game… CAPS Rating: ****
JBL $19.47 Up +0.16 +0.83%
Jabil Circuit, Inc… CAPS Rating: ****
OXY $71.84 Up +1.28 +1.81%
Occidental Petrole… CAPS Rating: ****