Why Coach (COH), Freeport-McMoran (FCX) and GameStop (GME) Are Today’s 3 Worst Stocks

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The stock market rose today, amid speculation over what tomorrow’s Federal Open Market Committee will have in store. Most investors expect the central bank to end its bond-buying program, though the big question is what sort of interest rate guidance the Fed will give.

coach inc freeport mcmoran inc gamestop corp todays worst stockDespite the broad gains, shares of Coach (COH), Freeport-McMoran (FCX), and GameStop (GME) each fell sharply, ending as some of Wall Street’s most notable decliners.

Coach (COH)

Luxury designer Coach has been circling the drain as a brand for some time now, largely due to competitor Michael Kors (KORS), which has mercilessly moved in on Coach’s market. Coach reported fiscal first-quarter results today, and while the company turned a profit, Coach’s troubling tendency to bite the dust on same-store sales continues.

COH shares plunged 6% on Tuesday. COH stock is off about 40% year-to-date, largely because of same-store sales weakness, a metric considered holy by retail investors. Same-store sales fell a whopping 24% in the most recent quarter, painting a grim picture for the handbag-maker and its alleged turnaround plans. Watch out below when it comes to COH stock.

Freeport-McMoran (FCX)

Shares of gold and copper miner Freeport-McMoran fell 4.2% on Tuesday, and FCX stock finished the day down more than 23% YTD. Like Coach, FCX stock took a hit after reporting quarterly results. Freeport-McMoran’s quarter-to-quarter performance is largely determined by the prices of gold and copper, and unfortunately for FCX shareholders, both commodities lost ground from the same period last year. Copper prices lost nearly 5%, while the average realized gold price fell 8.2%.

FCX is also facing scrutiny from investors after announcing labor issues at its Grasberg copper mine in Indonesia, where workers plan to strike in the wake of a tragic accident that killed four employees in late September.

GameStop (GME)

Lastly, shares of video game-retailer GameStop ended lower on Tuesday, slipping 1.9%. Given the competition, I don’t blame GME shareholders for getting skittish. The largest brick-and-mortar retailer in the world, Walmart (WMT) announced today that it would be offering Call of Duty: Advanced Warfare on Nov. 3, a full 24 hours before its official release. While that’s already already bad news for GME and its stock, Walmart isn’t stopping there. WMT begins selling certified pre-owned video games at 1,700 of its locations, threatening Gamestop’s used game empire even more directly.

While I personally wouldn’t own GME stock, some customers find their in-store representatives very helpful and enjoy their specialized knowledge, so GameStop shares aren’t necessarily doomed for failure.

As of this writing John Divine was long shares of KORS stock. You can follow him on Twitter at @divinebizkid.


Article printed from InvestorPlace Media, https://investorplace.com/2014/10/coach-inc-freeport-mcmoran-inc-gamestop-corp-todays-worst-stock/.

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