Why Regeneron Pharmaceuticals, Inc., Oracle Corporation, and Darden Restaurants, Inc. Are Today's 3 Worst Stocks

Analysts play a big role in sending these three names to the bottom of the stock market today

Jun 20, 2014 at 7:32PM

The stock market cautiously advanced yet again on Friday, and the S&P 500 Index (SNPINDEX:^GSPC) even finished at a new record closing high. If only all of its components could be so lucky: shares of Regeneron Pharmaceuticals (NASDAQ:REGN), Oracle Corporation (NYSE:ORCL), and Darden Restaurants, (NYSE:DRI) ended as the benchmark index's three worst stocks, each declining by more than 3%. The S&P, for its part, added 3 points, or 0.2%, to end at 1,962.

Regeneron Pharmaceuticals, a biotech company that largely hinges on the success of its macular degeneration product Eylea, plunged 4.2% on Friday. BMO Capital issued a note to investors saying that around 10% of Eylea users are switching to other treatments -- a spooky stat that, if true, would justify some caution on behalf of Regeneron shareholders. Unfortunately for investors, BMO's note, while hardly authoritative, is putting the market on edge simply because it could potentially be onto something.

Wall Street analysts also played a role in Oracle's 4% slump today, though this negative sentiment was mostly earned as a result of the tech giant's underwhelming quarterly report. Both earnings per share, or EPS, and overall sales in the most recent quarter failed to meet estimates: EPS came in at $0.92 against a $0.95 projection, and revenue came in at $11.3 billion versus calls for $11.5 billion. Sales of new software licenses also failed to impress Oracle investors, as they remained flat year-over-year.


Darden is thinking about selling its Red Lobster chain. Source: Darden Restaurants.

Finally, shares of Darden Restaurants, a restaurant operator that owns the Red Lobster, Olive Garden, and LongHorn Steakhouse brands, among others, lost 3.9% on Friday. Like Oracle, Darden Restaurants reported a bum quarter of sales and earnings, with Red Lobster and Olive Garden both losing revenue as earnings slipped 35% across the company. Its earnings per share projections for the current fiscal year also fell far below expectations, as the company forecast EPS between $2.22 and $2.30. Wall Street was hoping for EPS around $2.79. While investors can count their lucky stars that Darden's trying to dispose of its struggling Red Lobster franchise, the price tag probably took a hit today on the weak financial figures.

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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 owns shares of Oracle. 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.

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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