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Why Marathon Oil, Textainer Group Holdings, and Kinross Gold Slumped Today

By Dan Caplinger - Feb 15, 2018 at 4:33PM

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The market soared again, but these stocks dropped. Find out why.

Wall Street enjoyed another positive session on Thursday, with major benchmarks rising more than 1% to keep clawing back the ground they had lost in the correction over the past couple of weeks. Absent signs of follow-through selling and with renewed confidence in the ability of the U.S. economy to expand at a rapid rate, market participants seemed ready to put the pullback behind them and send the Dow and other key indexes back toward record highs. Yet some companies had bad news that kept them from participating in the rally. Marathon Oil (MRO -1.36%), Textainer Group Holdings (TGH 0.70%), and Kinross Gold (KGC -4.53%) 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.

Marathon loses energy

Shares of Marathon Oil fell nearly 4% after the oil and gas exploration and production company reported fourth-quarter results. Shareholders seemed to focus on the fact that Marathon's production numbers weren't quite as strong as they had expected. Yet earnings were better than most of those following the stock had predicted, and Marathon stands to benefit considerably if oil prices can remain near their current levels of around $60 per barrel. If Marathon's big bets on some promising shale-play assets prove to be winners, then investors will have the last laugh.

Multiple oil rigs against a sunset silhouette with blue-colored curves as accents.

Image source: Marathon Oil.

Textainer gets contained

Textainer Group Holdings stock plunged 18% despite the company reporting fourth-quarter financial results that many investors believed were fairly solid. The leasing company specializing in intermodal containers reported an 8% rise in revenue, as rental income was up 9% from the previous year's period, and it reversed year-ago losses with substantial adjusted net income. Moreover, Textainer sees a solid 2018 ahead, with stronger economies in Europe, the tax cuts in the U.S., and robust demand helping to offset the potential negative impact of rising competition in the container area. Shareholders read something less rosy into their assessment of the report and sent the stock sharply lower.

Kinross loses its luster

Finally, shares of Kinross Gold lost 7%. The gold mining company said in its fourth-quarter financial report that production was down by more than 93,000 gold-equivalent ounces to about 652,700 ounces, and even favorable gold-price movements still sent overall revenue for the quarter down 10% from year-ago levels. All-in sustaining costs rose slightly from previous levels but remained around the $1,000-per-ounce mark. Some investors also didn't seem to like Kinross' guidance for 2018, with production estimates of about 2.5 million ounces for the full year representing another decline from production of nearly 2.7 million ounces over the past year. Without greater strength in gold prices, Kinross could struggle to keep gaining ground after a strong stock-price performance in 2017.

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Stocks Mentioned

Kinross Gold Corporation Stock Quote
Kinross Gold Corporation
KGC
$3.58 (-4.53%) $0.17
Marathon Oil Corporation Stock Quote
Marathon Oil Corporation
MRO
$22.48 (-1.36%) $0.31
Textainer Group Holdings Limited Stock Quote
Textainer Group Holdings Limited
TGH
$27.41 (0.70%) $0.19

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

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