Please ensure Javascript is enabled for purposes of website accessibility

Today’s 3 Worst Stocks

By John Divine – May 9, 2013 at 7:07PM

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

Big misses and bearish presentations do in today’s three laggards.

The four-year bull market that drove the S&P 500 Index (^GSPC 2.59%) to all-time record closes in the last four trading days lost ground today -- but it isn't the end of the world. The S&P lost six points, or about 0.4%, Thursday after a Federal Reserve official said he'd like to slow the pace of bond buybacks as soon as next month. But a mere comment about monetary policy wasn't what drove the S&P's three worst performers to their depressed states. 

Tops in today's losers: energy drink maker Monster Beverage (MNST 2.43%), which tumbled 5.2% on declining sales and an underwhelming outlook for future growth. It doesn't take a savvy investor to realize that any company with slipping sales growth and legal battles on the horizon over product safety probably isn't the best safe haven for his or her money. Oh, and after the CEO was done talking about the awful first quarter, he told investors not to expect any improvements in April. 

Electric utility provider AES (AES 4.25%) slumped 4.9% today after reporting a feeble quarter of its own. While both sales and earnings were down at the company, there was a silver lining in the announcement. The company is well aware of the economic woes in Europe, and it's taking major steps to divest itself from the troubled continent. It's already sold more than $1 billion in foreign assets in the last two years that have shown slow- to no-growth opportunities. So, despite the weak quarter, the CEO gets the picture, and the company is moving forward with a smarter strategy.

Finally, disk-drive maker Seagate Technology (STX) slipped 4.7% Thursday, to register as the third biggest decliner in the index. Hedge-fund manager Jim Chanos' comments at the annual Ira Sohn Conference were major contributors to the stock's poor performance today. Chanos, who earned his fair share of name recognition after predicting Enron's fraudulent accounting practices, said hard-disk drives were seeing greater sales drops than even the PC market, calling out Seagate specifically.

Fool contributor 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 Monster Beverage. The Motley Fool owns shares of Monster Beverage. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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

S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
$3,678.43 (2.59%) $92.81
Monster Beverage Corporation Stock Quote
Monster Beverage Corporation
$89.07 (2.43%) $2.11
Seagate Technology plc Stock Quote
Seagate Technology plc
The AES Corporation Stock Quote
The AES Corporation
$23.56 (4.25%) $0.96

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

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.