Today's 3 Worst Stocks
The S&P 500 Index needed to take a break. It had hit all-time highs in nine of the last 10 sessions and, on Thursday, the index did something unconventional: It took a step back. Perhaps it was warranted, as new housing starts slipped big-time in April (more than 16%), and recent industrial production figures underwhelmed. But while the S&P was going through a modest, eight point, 0.5% pullback to close at 1,650, the following three stocks were suffering through far more severe sell-offs.
Chip maker Advanced Micro Devices , which has been on an absolutely unbelievable run as shares soared more than 80% this year, cratered 12.6% today on some scathing comments from a Goldman Sachs analyst, who thinks the run-up has been exaggerated. He noted that, while AMD doesn't traffic exclusively in the PC market, the PC segment still makes up 45% of the company's sales, implying that investors have gotten too excited about AMD's involvement with the new Microsoft Xbox consoles.
Biotech company Celgene is the second-largest decliner in the index today, slumping 4.7%. The company develops products that treat cancer, including multiple myeloma drug Revlimid, which reportedly achieved a response rate of 56% in a new clinical trial. The counterintuitive fall in Celgene today comes after a Piper Jaffray analyst lauded the results of the study; obviously, not everyone agreed with that sentiment.
Lastly, Computer Sciences logs its second consecutive day on this list, shedding 4.7% on the heels of its quarterly earnings announcement. Sometimes, there's little rhyme or reason behind a stock that continues to fall and fall, other than momentum. That may very well be the case with Computer Sciences, which, as a leader in the IT field, not only was more profitable in the most recent quarter, but also returned more than $250 million to shareholders through share buybacks and dividends.
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The article Today's 3 Worst Stocks originally appeared on Fool.com.
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 Celgene and Goldman Sachs. The Motley Fool owns shares of Microsoft. 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.
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