5 of Last Week's Biggest Losers

There's never a shortage of stocks going the wrong way in any given chunk of time. No stock goes straight up, and sometimes fundamentals can get a bit wobbly. Let's take a closer look at five of this past week's biggest sinkers.

Company

June 20

Weekly Loss

Coach  (NYSE: COH  )

$34.73

12%

ConAgra  (NYSE: CAG  )

$28.81

11%

DreamWorks Animation  (NASDAQ: DWA  )

$24.47

11%

Hercules Offshore  (NASDAQ: HERO  )

$4.36

10%

QIWI  (NASDAQ: QIWI  )

$39.96

10%

Source: Barron's.

Let's start with Coach. The maker of luxury handbags dropped its pocketbook after warning of continuing declines in revenue. Coach's uninspiring news didn't go over well on Wall Street. Morgan Stanley, Goldman Sachs, Barclays, Nomura, KeyCorp, and Stifel Nicolaus all slashed their price targets. William Blair and BMO lowered their ratings on the stock.

ConAgra investors were left hungry for more after the food giant behind Slim Jim beef jerky, Chef Boyardee canned pastas, and other iconic supermarket brands warned that it will come up short on the bottom line in its upcoming earnings report. ConAgra blames the weakness in its consumer foods and private label businesses for the shortfall. ConAgra now sees profitability clocking in closer to $0.55 a share, off from its earlier guidance calling for net income to come in just north of $0.60 a share.

Unfortunately for ConAgra shareholders, this isn't a fluke. This is the second time this year it has hosed down its earlier forecasts. The silver lining for potential investors is that the stock's 11% slide bumps its yield up to a notable 3.5%.

Shares of DreamWorks Animation lost some color after How to Train Your Dragon 2 got off to a bad start at the local multiplex. It rang up just $50 million in its opening weekend, short of the forecasts calling for as much as $60 million. The sequel to 2010's surprising blockbuster is faring well on the critical front. A whopping 92% of film critics tracked by RottenTomatoes.com liked the movie. However, it didn't prove to be the magnetic summertime smash that DreamWorks Animation was hoping for.

Hercules Offshore went from hero to zero after revealing that it had to forgo a contract that would have generated roughly $110,000 a day through late 2016 in Angola. Hercules Offshore failed to obtain the required approval of a local rep. 

Finally we have QIWI slipping after completing a secondary offering. It sold nearly 8 million shares at $40 apiece, but just a quarter of the sales sold were by QIWI itself. The balance of the American depositary shares came from existing investors, and that could show a lack of confidence. It's a shame, because the Russian provider of a fast-growing payment-enabling network has been on a roll, deploying 15.5 million virtual wallets and more than 167,000 kiosks and terminals. QIWI is processing transactions from more than 70 million consumers using its network at least once a month.

Warren Buffett's worst auto-nightmare (hint: It's not Tesla)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at Ford called the technology "fantastic." The beauty for investors is that there is an easy way to invest in this megatrend. Click here to access our exclusive report on this stock.


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: 3003393, ~/Articles/ArticleHandler.aspx, 12/19/2014 10:57:52 PM

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...


Advertisement