Please ensure Javascript is enabled for purposes of website accessibility

Why Tile Shop Holdings, Cameco, and National Beverage Slumped Today

By Dan Caplinger - Oct 3, 2017 at 4:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Even on a good day for the market, these stocks fell. Find out why.

Tuesday was another solid day for the stock market. The Dow and other major benchmarks climbed to all-time highs, riding the continued wave of optimism among investors that the U.S. economy will be able to support consistent and steady growth indefinitely into the future. Good news from the auto sector also added to positive sentiment. Yet some companies weren't able to participate in the advance, and Tile Shop Holdings (TTSH 4.89%), Cameco (CCJ 3.81%), and National Beverage (FIZZ 1.10%) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.

Tile Shop cracks again

Shares of Tile Shop Holdings plunged 36%, adding to losses from late last month after the tile retailer released disappointing preliminary financial results for the third quarter. The company said that comparable-store sales growth would be just 1%, with revenue gains limited to 7% overall due to increased competition in the home improvement retail space. The key question that Tile Shop investors have to answer is whether they think the issues that Tile Shop faces are short-term in nature or are fundamental long-term obstacles to the success of the company's business model. For those who think that Tile Shop can bounce back, the big drop represents an attractive opportunity.

Bathroom with stylish wall tile, mirror, and cabinet.

Image source: Tile Shop.

Cameco stock has a minor meltdown

Cameco stock dropped 9%, hitting its lowest levels of 2017. Analysts at Scotia Capital downgraded shares of the uranium producer from sector perform to sector underperform, predicting weakness in the uranium market that could hurt Cameco's long-term prospects. Cameco already faces the expiration of key supply contracts in the next five years, and there's a lot of uncertainty about whether it will be able to obtain renewals of those arrangements without accepting lower price points. Right now, spot prices for uranium are lower than what Cameco gets paid under existing arrangements, but unless demand rebounds from decisions among major industry players to scale back nuclear power efforts, Cameco could face a big problem in the near future.

National Beverage goes flat

Finally, shares of National Beverage dropped 6%. The decline marked the second day in a row that the beverage maker has seen losses of 5% or more, and the move looks like a simple correction after a long streak of upward moves for the stock. National Beverage has enjoyed great success from the promotion of its La Croix sparkling water product line, and the company has even more ambitious ideas about potential future growth. As long as sales momentum remains strong, pullbacks like this one are likely to be short-lived for National Beverage stock.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Cameco Corporation Stock Quote
Cameco Corporation
CCJ
$21.82 (3.81%) $0.80
Tile Shop Holdings, Inc. Stock Quote
Tile Shop Holdings, Inc.
TTSH
$3.22 (4.89%) $0.15
National Beverage Corp. Stock Quote
National Beverage Corp.
FIZZ
$49.48 (1.10%) $0.54

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.