Why National Oilwell Varco, Inc.,, and Newmont Mining Corp. Are Today's 3 Worst Stocks

The stock market underwent a choppy session of trading on Monday as investors tried to reconcile rising tensions with Russia with encouraging economic data and a flurry of earnings reports. While Wall Street ended on a mixed note, there wasn't much to reconcile for National Oilwell Varco (NYSE: NOV  ) , (NYSE: CRM  ) , and Newmont Mining Corp. (NYSE: NEM  ) shareholders, as the stocks finished as the three worst performers in the S&P 500 Index (SNPINDEX: ^GSPC  ) today. The S&P 500 as a whole ended with a 6-point, or 0.3%, gain, closing at 1,869.

National Oilwell Varco, the $33 billion Houston-based oil rig-maker, saw shares take a nasty 7.4% stumble on Monday. On the face of it, the pullback seems surprising, since the company reported first quarter earnings that beat Wall Street estimates today. The company barely missed revenue forecasts, logging sales of $5.78 billion to analysts' hopes of $5.79 billion, but the real kicker came in National Oilwell Varco's talk of the future. It expects rig sales to taper off as the year wears on, with its record backlog of $16 billion easing to a mere $14 billion or $15 billion come New Year's. 

Shares of, a leading name in web-based sales generation and management, also had a rough go of it today, plunging 7%. The odd thing about Salesforce's decline today is that it wasn't clearly predicated on disappointing numbers or projections. Instead, shares are in a momentum-based freefall, one that's given shares a 12.4% haircut in the last five trading days. Stocks like Salesforce, with lofty valuations (70 times forward earnings) in hot-button industries (cloud computing), have been skating on thin ice for the last few months as institutional investors have started de-risking their portfolios in favor of less speculative plays. 

Newmont operations in Peru. Source: company website.

Lastly, shares of Newmont Mining lost 6.7% today, as talks of a merger with Barrick Gold fell apart, degenerating into a dirty game of PR bashing. Had the two companies merged, the new entity would form a $32 billion global gold-mining empire with production facilities in dozens of countries, creating new cost efficiencies from the distributed geographical locations of the company's mines. Location to the end consumer is extremely important in the materials sector, since shipping large amounts of heavy, sometimes unwieldy cargo across the world can cost a fortune. Instead of sharing the advantages offered by a merger, Newmont Mining and Barrick are left to compete with each other and point fingers as to who was responsible for the breakdown in talks. Both stocks lost major ground today, but it was the smaller Newmont that bore the brunt of the damage.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (1) | Recommend This Article (2)

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.

  • Report this Comment On April 28, 2014, at 7:49 PM, Decoy0527 wrote:

    I could never figure out who was buying SalesForce over $50 per share, because even valued primarily on revenue growth rates, it was over priced. It has no earnings, questionable accounting practices, and a CEO who seems to be the P.T. Barnum of the cloud companies. This thing could, and should, trade below $30 until it demonstrates a consistent, real GAAP earnings trend. The non-GAAP "earnings" reported by SalesForce are just a whatever we want it to be number.

Add your comment.

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: 2933900, ~/Articles/ArticleHandler.aspx, 9/3/2015 7:00:39 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 9 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
CRM $67.98 Up +1.35 +2.03% CAPS Rating: **
NEM $16.21 Down -0.52 -3.11%
Newmont Mining Cor… CAPS Rating: ***
NOV $40.86 Down -0.49 -1.19%
National Oilwell V… CAPS Rating: *****