Why The Priceline Group Inc., Edwards Lifesciences Corp., and Citigroup, Inc. Are Today’s 3 Worst Stocks

Acquisitions, growth assumptions, and potential federal lawsuits plague these three stocks today

Jun 13, 2014 at 7:01PM
Longview

Investors got back into the buying spirit on Friday, sending nine out of 10 sectors higher, as all three major U.S. indices gained ground today. On Wednesday, the World Bank revised the estimate for global growth in 2014 lower, to 2.8% from 3.2%, and yesterday's sectarian violence in Iraq sent stocks plunging, yet again. But on Friday, those fears were largely dismissed or ignored by Wall Street, and the S&P 500 Index (SNPINDEX:^GSPC) added six points, or 0.3%, to end at 1,936. The Priceline Group (NASDAQ:PCLN), Edwards Lifesciences Corp. (NYSE:EW), and Citigroup, (NYSE:C), however, each finished the day in the red, ending as some of the worst stocks in the benchmark index.

The Priceline Group was Friday's single largest laggard in the S&P 500, tumbling 3%. Priceline didn't make a costly PR gaffe, or receive any damning analyst downgrades; Wall Street punished the stock merely because it acquired restaurant-booking website OpenTable for $2.6 billion. In fairness, Priceline did pay a hefty premium for its stake -- a 46% premium to Thursday's closing price, as a matter of fact -- but in return, Priceline diversifies its business and gets a company that's nearly tripled its annual sales since 2009.

The only sector of the markets that didn't gain ground today was the health-care sector, where medical appliances manufacturer Edwards Lifesciences makes its bread and butter. The stock shed 1.9% on Friday, as investors continued to punish the company for saying that its growth will likely be affected by competition this year. The silver lining is that the company, which specializes in making devices that treat heart ailments and disease, sees industry-beating growth beginning in 2015. Edwards Lifesciences also just received a $1.1 billion patent infringement settlement from rival Medtronic last month, so investors can be thankful for a big payout and, of course, fewer legal fees in the future.

Citigroup

Source: Public domain

Finally, shares of Citigroup lost 1.4% today after reports that the Justice Department is preparing to sue the company for its role in selling mortgage-backed securities that went sour, causing a ripple effect that helped to create the financial crisis. In what must be one of the most dysfunctional love/hate, public sector/private sector relationships in history, Citigroup received $476 billion in cash and guarantees during the financial crisis to keep it afloat. Today's reports allege that the bank refused to pay more than $4 billion to the Justice Department during negotiations for its role in the economic collapse.

These stocks beat the big banks...
Here's your chance to pocket big dividends. Over time, dividends can make you significantly richer. And guess what? The big banks are laggards when it comes to paying dividends. So instead of waiting for a cash windfall that may never come, check out these stocks that are paying big dividends to their investors RIGHT NOW. Click here for the exclusive free report.

John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool recommends OpenTable and Priceline Group. The Motley Fool owns shares of Citigroup, Medtronic, and Priceline Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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