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

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
Imagine the multi-billion dollar sales potential behind a product that can revolutionize the way the world shops and interacts with its favorite brands every day. Now picture one small, under-the radar company at the epicenter of this revolution that makes this all possible. And its stock price has nearly an unlimited runway ahead for early, in-the-know investors. To be one of them and hop aboard this stock before it takes off, just click here.  


Read/Post Comments (0) | Recommend This Article (3)

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: 3010257, ~/Articles/ArticleHandler.aspx, 11/23/2014 4:36:24 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