Why Express Scripts Inc., Monster Beverage Corporation, and Biogen Idec Inc. Are Today's 3 Worst Stocks

Healthcare takes a hit once again; takeover rumors don't prevent a pullback -- here are the three worst performers in the stock market today.

Jul 16, 2014 at 7:03PM

Seven of the stock market's 10 sectors finished higher today, as a second day of testimony from Federal Reserve Chairwoman Janet Yellen served to assure investors that interest rates will remain low indefinitely. With that in mind, stocks seem to be the most appealing asset class, a fact that was of no comfort to shareholders in Express Scripts (NASDAQ:ESRX), Monster Beverage Corporation (NASDAQ:MNST), and Biogen Idec (NASDAQ:BIIB) today. These three stocks were three of the worst performers in the S&P 500 Index (SNPINDEX:^GSPC) on Wednesday, even as the S&P itself added 8 points, or 0.4%, to finish at 1,981.

Pharmacy benefits manager Express Scripts managed to lose 3.1% today, despite few breaking developments that could be considered bearish. The biggest knock on the company from Wall Street's point of view was simply that Express Scripts hails from the health care sector, which was the worst performing sector in the stock market today. The company recently made changes to its coverage policy, dropping roughly 1,000 ingredients used in the compounding process, whereby two or more drugs are combined to create a customized medicine. This should help Express Scripts control costs in the long-run.


Monster is crushing it in the U.S., but can it take its dominance abroad? Image Source: Monster Beverage

Shares of the largest U.S. energy drink maker by volume, Monster Beverage, fell 2.9% today. Although buyout rumors are swirling and the usual talking heads are jabbering on about its potential acquisition, all that speculation hasn't even managed to send the stock higher recently, and Monster Beverage is actually on a three-day losing streak. Zooming out a bit, however, Monster does have a number of things going for it, as evidenced by its most recent blowout quarter. Consumers are losing their taste for sodas, yet energy drinks are becoming more popular than ever. Monster has a strong brand and great distribution in the U.S. and it's working on taking its empire global. Admittedly, shares appear a little frothy right now, but the underlying business is phenomenal.

The biotech industry has taken somewhat of a beating this week, and shares of Biogen Idec weren't immune to punishment on Wednesday, shedding 2.7%. Considering the contents of a report that accompanied Janet Yellen's testimony before Congress yesterday, today's losses aren't so shocking. The Fed's report specifically mentioned biotech stocks and social media stocks as being overvalued, an unusual comment for the central bank to make. While Biogen Idec's financial health appears to be perfectly acceptable, the stock, which trades at 37 times earnings, probably won't be the first one value investors look to for a bargain.

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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 and owns shares of Express Scripts and Monster Beverage. 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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