Why Vertex Pharmaceuticals Incorporated, Michael Kors Holdings, Ltd., and The ADT Corporation Are Today's 3 Worst Stocks

From biotechs to luxury retailers to security companies, these three names were the worst in the stock market today

Jun 16, 2014 at 6:28PM

This is an exciting time for the planet Earth, as billions of people around the globe turn their attention to the world's most popular sport: something Americans decided to call soccer. Maybe all the excitement surrounding the beginning of the 2014 World Cup in Brazil is to blame for the lull on Wall Street today. Why get worked up about stocks when you can be serenaded by the sweet sound of deafening vuvuzelas? Investors in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), Michael Kors Holdings, Ltd. (NYSE:KORS), and The ADT Corporation (NYSE:ADT) certainly weren't worked up, as each stock finished as one of the worst in the S&P 500 Index (SNPINDEX:^GSPC). The S&P, for its part, added 1 point, or 0.1%, to end at 1,937.

Vertex Pharmaceuticals shed 8.7% after a pessimistic analyst report from Bernstein research. The biotech company, which sells treatments for hepatitis C and cystic fibrosis, will likely catch heat from shareholders if Phase 3 trials for its cystic fibrosis treatment don't paint an upbeat picture. Vertex Pharmaceuticals already markets a drug called Kalydeco in the EU and U.S., but the company's studying a combination of Kalydeco and another drug called VX-809 in hopes that the combo might be more effective. According to scientists at a cystic fibrosis conference in Sweden this weekend, those hopes are possibly misguided.

Shares of luxury fashion retailer Michael Kors lost 3.8% on Monday, ending as another notable laggard in the S&P 500. Michael Kors has been a lousy stock to bet against in the last year, as shares soared nearly 50% and the company continued to gobble up market share from industry big wigs like Coach. Now it looks like Kors has an up-and-coming rival of its own to worry about: Vince Holding, which just posted a 32% jump in sales in the first quarter as the company swung to a profit.


The ADT Pulse touch screen. Source: ADT

The last of the day's laggards, ADT Corporation, saw its stock fall 1.8% today. Revenue growth at the home security company has been precariously decelerating since 2011, when sales grew by 20%. Last year sales grew by just 2.5%. A rapidly changing industry in which newer, sexier entrants embracing things like do-it-yourself installation and smart energy management solutions are flipping the business on its head. ADT isn't exactly behind the curve; it's promoting ADT Pulse, which lets consumers remotely adjust their thermostats. That said, money talks, and ADT hasn't yet proved that it can execute on the concept emphatically enough for Wall Street to fall in love with it.

Are you ready for this $14.4 trillion revolution?
Have you ever dreamed of traveling back in time and telling your younger self to invest in Apple? Or to load up on Amazon.com at its IPO, and then just keep holding? We haven't mastered time travel, but there is a way to get out ahead of the next big thing. The secret is to find a small-cap "pure play" and then watch as the industry -- and your company -- enjoy those same explosive returns. Our team of equity analysts has identified one stock that's ready for stunning profits with the growth of a $14.4 trillion industry. You can't travel back in time, but you can set up your future. Click here for the whole story in our eye-opening report.

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

The Motley Fool recommends Amazon.com, Apple, Coach, Michael Kors Holdings, and Vertex Pharmaceuticals and owns shares of Amazon.com, Apple, Coach, and Michael Kors Holdings. 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