Why Bed Bath & Beyond Inc., Tenet Healthcare Corp., Phillip Morris International, Inc. Are Today’s 3 Worst Stocks

These three names ended as the worst performers in the stock market today.

Jun 26, 2014 at 8:23PM

Stocks lost ground on Thursday as consumer spending numbers came in below expectations, and institutional investors sold positions ahead of the end of the second quarter. While the S&P 500 Index (SNPINDEX:^GSPC) ended modestly lower, Bed Bath & Beyond (NASDAQ:BBBY), Tenet Healthcare Corp. (NYSE:THC), and Philip Morris International, (NYSE:PM) were the day's worst decliners. The S&P 500 itself lost two points, or 0.1%, to end at 1,957.

Bed Bath & Beyond shares were plunging today, shedding 7.2% after it missed on quarterly earnings, and projections came in below expectations, as well. The company forecast second-quarter earnings per share between $1.08 and $1.16, far below analyst expectations for $1.20. Margins are on the decline, coming in at their lowest levels this decade. On top of that, Bed Bath & Beyond's online efforts haven't yet paid off, which could be a catalyst for margin growth.

Shares of Tenet Healthcare lost 2.7% today, as the health-care sector ended in the red. Sales at the hospital operator soared 21% last year, but profits have been steadily declining for the last five years -- in 2013, Tenet actually lost $123 million. One admirable thing the company's doing currently is partnering with TriWest Healthcare to help veterans in five different states. With the wars in Iraq and Afghanistan winding down in recent years, Americans returning from the line of duty need adequate health care, and Tenet's partnership shows that we appreciate what they've done for us.


Source: Philip Morris

Lastly, shares of Philip Morris International fell 2.7% today, as the stock took a hit after announcing dismal full-year guidance. Investors buy the future, not the past, and with the tobacco industry facing harsher and harsher regulations, Philip Morris and its peers will have to get creative to increase profitability in the long term. E-cigarettes, which, as a relatively new part of the market, have yet to face the sort of scrutiny traditional cigarettes face, are one such way Philip Morris is trying to expand. While the company blamed currency fluctuations, black market tobacco in the Philippines, and less colorful packaging in Australia for its lowered projections, it's hoping that its investment in England's e-vapor company Nicocigs will get things back on track.

Leaked: This coming consumer device can change everything
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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 recommends Bed Bath & Beyond. 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.

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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