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



Why Intuitive Surgical, Inc., Delta Air Lines Inc., and Pitney Bowes Inc. Are Today's 3 Worst Stocks

Stocks ended last week on an abysmal note. The S&P 500 Index (SNPINDEX: ^GSPC  ) lost 2% on Thursday, then another 1% on Friday, as a sell-off in high-growth names, tech and biotech companies drove the market lower. Thankfully, Wall Street bounced back on Monday as March U.S. retail sales beat estimates. But retail sales didn't impress investors in Intuitive Surgical, (NASDAQ: ISRG  ) , Delta Air Lines (NYSE: DAL  ) , and Pitney Bowes (NYSE: PBI  ) , each of which in the troughs of the benchmark index today. The S&P itself added 14 points, or 0.8%, to end at 1,830.

Intuitive Surgical shed 3.3%, as investors still appear unable to get over last week's revenue warning. While the robotic medical devices company doesn't report official first-quarter results until April 22, it released preliminary, unaudited results last week. The 24% sales slump, driven by poor results from its da Vinci systems division, doesn't bode well for the company. The da Vinci systems segment is seen as the catalyst for growth, so it's no wonder Wall Street cringed at the 59% decline in the area. That said, the next generation of the robotic surgery device, the da Vinci Xi, was approved by the FDA earlier this month, and it should reinvigorate the company's prospects. 

Source: company website

Similar to Intuitive Surgical, shares of Delta Air Lines are also reeling from last week's sentiments. Stock in the airliner fell 2.4% today, bringing its three-day losses to 8.6%. Delta Air Lines shares began to slip after Imperial Capital lowered earnings estimates for American Airlines last Thursday, claiming the company had yet to factor in the effects of winter weather on results. The pullback doesn't seem fair to Delta, which reported that passenger unit revenue, a common and widely followed metric for airlines, increased 1% in March 2014 from March 2013. 

Pitney Bowes shares, too, have been through a rough three-day period. Off 6% in the last three sessions, the stock dropped 2% Monday. The mail processing equipment provider isn't just in a short-term pickle: its long-term prospects don't look so hot, either. As snail mail continues to slowly perish, so too do Pitney Bowes' sales. The company either needs to expand its offerings, boost its margins, or face its demise head-on. Judging by its results, Pitney Bowes is opting for the latter choice: sales have declined at an accelerating rate for the past four years, slumping 21% in 2013 alone.

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 AAPL stock. Click here to get the full story in this eye-opening new report.

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: 2915124, ~/Articles/ArticleHandler.aspx, 9/3/2015 12:39:26 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...

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 3 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

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

9/2/2015 4:36 PM
^GSPC $1948.86 Up +35.01 +1.83%
S&P 500 INDEX CAPS Rating: No stars
DAL $45.99 Up +2.22 +5.07%
Delta Air Lines, I… CAPS Rating: ***
ISRG $511.13 Up +7.71 +1.53%
Intuitive Surgical CAPS Rating: ****
PBI $19.59 Up +0.30 +1.56%
Pitney Bowes, Inc. CAPS Rating: ***