Why SanDisk Corp., Mattel Inc., and Danaher Corp. Are Today’s 3 Worst Stocks

The stock market was a sea of red today, with losers outnumbering winners by a 4-to-1 margin. Unfortunately the catalyst behind Thursday's sell-off was the tragic loss of human life, as a Malaysia Airlines plane, with 295 people on board, was gunned down in eastern Ukraine by as-yet-unidentified forces. All 10 sectors ended in the red today, and shares of SanDisk (NASDAQ: SNDK  ) , Mattel (NASDAQ: MAT  ) , and Danaher (NYSE: DHR  ) finished toward the bottom of the S&P 500 Index (SNPINDEX: ^GSPC  ) . The S&P itself lost 23 points, or 1.2%, to end at 1,958.

Shares of flash memory provider SanDisk plunged 13.6%, ending as the single worst-performing stock in the S&P 500 today. Although SanDisk managed to beat both top- and bottom-line forecasts for the second quarter, investors own a company's future, not its past. SanDisk's future doesn't look quite as rosy as Wall Street anticipated: The company projected third-quarter revenue between $1.67 billion and $1.725 billion, where analysts had expected $1.74 billion. The projected sales miss doesn't quite justify the stock's free fall today, but if SanDisk routinely lowers its guidance in the quarters and years ahead, it will be fair to assume that trouble is brewing.

Behind Barbie's glamorous image and outward confidence lies deep-seated sales issues. Image Source: Mattel.

Trouble is almost certainly brewing at toy-maker Mattel; the company's shares shed 6.6% Thursday. "What's the trouble?" you might ask. Before I tell you, you may want to send any young children intently reading this article over your shoulder to another room. It's best that they don't see the disturbing truth spelled out so bluntly: Barbie is dying. While it's common knowledge that Barbie has retained her famed physique for more than five decades, the 55-year-old Barbie is suffering from a condition that can prove fatal for many toys: declining sales. Barbie sales, which are estimated to be around $1 billion a year and account for roughly 15% of Mattel's total sales, have slumped in eight of the last 10 quarters, and fell 15% in the second quarter.

Quarterly earnings at diversified machinery titan Danaher sent the stock tumbling today, as it lost 5.6% by the ring of the closing bell. Adjusted earnings per share in the second quarter came out to $0.93 per share, missing estimates by $0.01. Second-quarter revenue also missed, coming in at $4.96 billion against the $4.97 billion Wall Street had forecast. The test and measurement division of Danaher was the real laggard, as sales fell 2% year over year in that area. The life-sciences division, however, is doing quite well, and Danaher even announced the $480 million purchase of Siemens' clinical microbiology arm just yesterday. No word yet on whether Danaher has the resources and know-how to bring Barbie back from the dead in the event of her demise.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (1) | Recommend This Article (1)

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.

Add your comment.

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: 3033871, ~/Articles/ArticleHandler.aspx, 10/1/2014 4:26:44 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