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

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.


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.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

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