Today's 3 Worst Stocks in the S&P 500
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
The stock market closed higher for a fourth straight day today, as the new chairman of the Federal Reserve reassured investors and Congress made progress on extending the debt ceiling once again. Although it took the threat of an imminent snowstorm to force Congress' hand, the House of Representatives is expected to take steps to raise the U.S. debt ceiling without conditions until March 2015. The S&P 500 Index added 19 points, or 1.1%, to end at 1,819 Tuesday.
While the overwhelmingly bullish market sent seven out of 10 stocks higher and boosted every single sector, that doesn't mean the day was without its losers. WPX Energy ended as the S&P's single worst stock of the day, losing 10% as it warned shareholders about what the company expects will be dreary fourth quarter results. WPX Energy provides oil and natural gas, and the $3.4 billion company announced its fourth quarter would feel the impact of a $1.4 billion impairment charge due to lower natural gas prices. Investors get to survey the extent of the damage when the Oklahoma-based company reports earnings -- or lack thereof -- on Feb. 27.
Shares of animal health pharmaceutical company Zoetis also took a hit today, stumbling 6.5% as its forward guidance spooked investors. Zoetis proved yet again that people really, really, love their animals last quarter, as net income more than tripled from the same quarter one year before. Of course, Zoetis' business is mainly derived from livestock, so saying that people "love their animals" takes a more morbid meaning in that context. From a business perspective, the bottom line is that growth is slowing, with earnings-per-share growth slowing back down to a single-digit pace.
Lastly, shares of consumer goods giant ConAgra Foods slid 6.3% today, as net income projections also disappointed investors. Pressured margins, a tougher outlook for the Consumer Foods division, and a weak potato crop were all cited as reasons behind ConAgra's poor guidance. Now, ConAgra products aren't going anywhere, and the stock -- which pays a 3.2% dividend -- should still be a solid long-term investment for patient shareholders. Wall Street may get burned for its short-term thinking on this one; I don't think one bad crop report or one missed earnings projection will materially hurt this steady performer in the years to come.
Secure your future with 9 rock-solid dividend stocks
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.
The article Today's 3 Worst Stocks in the S&P 500 originally appeared on Fool.com.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 has no position in any of the stocks mentioned. 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.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.