Why Valero Energy, Mylan, Inc., and Teradata Corporation Are Today's 3 Worst Stocks

Tech, health care, and materials mainstays all end as some of the worst performers in the stock market today

Apr 7, 2014 at 7:52PM
Longview

Investors fled from the stock market with little discretion on Monday, as all 10 sectors ended in the red and a three-day Wall Street sell-off intensified. After a uniquely bullish 2013, major indexes have remained stagnant; the S&P 500 Index (SNPINDEX:^GSPC) lost 20 points today, or 1.1%, to end at 1,845. It has yet to gain 1% in 2014. While we can ridicule the S&P for its ho-hum performance this year, Valero Energy (NYSE:VLO), Mylan, (NASDAQ:MYL), and Teradata Corporation (NYSE:TDC) deserve our concern and inquiry, since each stock ended as an incorrigible underperformer today.

The larger theme of the stock market today -- aside from the fact that everyone was selling them, was that investors rushed to sell momentum stocks above all others. Shares of Valero Energy lost 4.5% Monday, just days after hitting 52-week highs last week. Valero and other oil and gas refiners in the U.S. have benefited immensely from the ban on exporting American crude oil abroad. As my colleague Varun Chandran notes, lifting the ban would undoubtedly pressure refinery margins and hurt their business. But as Capitol Hill starts pondering what a lift on the ban would mean for the American economy, Valero and its peers are beginning to face some political risks.

Mylanstockphoto

Image source: Mylan website.

Generic-drug maker Mylan, is well-versed in headaches induced by regulators and Washington lawmakers. In fact, the company is even forced to deal with international regulators in the case of foreign acquisitions, and if you think the $18 billion Mylan isn't vying for a worldwide generic drug empire, then perhaps you haven't been taking your unbranded memory pills. Mylan shares shed 4.4% today after a modest advance on an analyst upgrade last Friday. The upgrade, however, came before Swedish drug maker Meda squashed negotiations that were aimed at joining the two companies. 

Teradata Corporation stands alone as the single stock on today's list that hasn't posted market-beating returns in the last year. While demand for data storage is growing by leaps and bounds, Teradata's real value lies in its data analytics, consulting, and discovery. Shares lost 4.3% on Monday, and they've fallen 14% in the last year as competitors from open-source platforms like Hadoop threaten Teradata's business model. The company almost seems desperate to reclaim the throne as the king of data and data analytics, putting out three press releases over a span of 10 minutes this morning touting new "unprecedented," "sophisticated," and "unmatched" offerings.

The biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now, for just a fraction of the price of Apple stock. Click here to get the full story in this eye-opening new report.

John Divine owns shares of Apple. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends Apple and Teradata and owns shares of Apple. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers