The market managed to log a gain on Tuesday, though hardly in an impressive fashion. When all was said and done, the S&P 500’s close of 2,095.84 today was only 0.16% better than Monday’s close, with most investors still looking for more clarity on which direction stocks should actually be headed here.
Some investors, however, would have been thrilled with only a tepid gain today from some of their stocks. Pep Boys-Manny Moe and Jack (NYSE:PBY), Norfolk Southern Corp. (NYSE:NSC) and TD Ameritrade Holding Corp. (NYSE:AMTD) were all deep in the red on Tuesday, for a myriad of reasons.
TD Ameritrade Holding (AMTD)
Don’t look for a specific catalyst that could be pegged as the reason AMTD shares lost ground on Tuesday; you won’t find one. Rather, just know that a combination of headaches has been piling up for a while, looking to turn the tide an overextended rally we’ve seen from AMTD over the past several months. The end result is a frothy trailing P/E of 25 and an equally unsustainable forward-looking P/E of 18.9.
That being said, it sure didn’t help TD Ameritrade Holding shares today when online-trading rival Charles Schwab Corp. (NYSE:SCHW) warned investors that Q1’s yet-to-be-reported bottom line would be crimped by an expensive marketing effort. Assuming any news that applies to one online broker applies to them all, traders sent AMTD shares lower to the tune of 2%. TD Ameritrade Holding shares are now back to prices seen in the first week of December.
Norfolk Southern (NSC)
Shares of railroad stock Norfolk Southern were derailed today following the company’s announcement that its first quarter results wouldn’t be as strong as first anticipated. Specifically, the company now believes it will earn $1 per share of NSC on $2.6 billion in revenue, versus analyst expectations for a top line of $2.67 billion and a profit of $1.26 per share.
Tepid demand for coal got the brunt of the blame for the weak Q1 outlook, which is also short of the company’s year-ago comparables. With exports of coal down, the need to ship it from middle America to the coast is similarly diminished.
All told, NSC lost 4% of its value today.
Pep Boys-Manny Moe and Jack (PBY)
Auto parts retailer Pep Boys-Manny Moe and Jack poured even more fuel on its bearish fire today by posting a surprise loss for its fourth fiscal quarter of 2015. Analysts were looking for an operating profit of three cents per share of PBY, but the company posted a loss of five cents per share instead. The results extend what has become a year-long streak of shrinking earnings, thin margins, and deteriorating sales.
The value of PBY has reflected the company’s performance struggle, with a peak of $14.07 seen in November of 2013 setting up a 40% pullback to a low of $8.00 hit in February. Although shares of Pep Boys-Manny Moe and Jack vaguely hinted at a pullback after hitting that low two months ago, today’s 7% stumble suggests the rout isn’t over just yet.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.