Why Mosaic Co (MOS), ConAgra Foods Inc. (CAG) and Petroleo Brasileiro SA (PBR) Are 3 of Today’s Worst Stocks

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With last week’s rate-hike decision still weighing on their minds (and little else to inspire them), investors became net sellers on Tuesday. The S&P 500‘s dip of 1.23% and close at 1942.74 was not only discouraging, but also broke some key short-term support levels.

Why Mosaic Co. (MOS), ConAgra Foods Inc. (CAG) and Petroleo Brasileiro SA (PBR) Are 3 of Today's Worst StocksLeading the day’s bearish charge were Petroleo Brasileiro SA – Petrobras (ADR) (NYSE:PBR), Mosaic Co (NYSE:MOS) and ConAgra Foods Inc. (NYSE:CAG).

Here’s what investors need to know.

ConAgra Foods Inc. (CAG)

On a day that was particularly bad for all stocks across the board, it was food company ConAgra Foods, of all things, that was one of the leaders of the selloff.

When it was all over but the crying, CAG lost 7.1% of its value on Tuesday.

The spur for the selloff was last quarter’s earnings and this quarter’s outlook. Profits were OK in fiscal Q1. The company earned an operating profit of 45 cents per share, topping estimates of 40 cents per share of CAG. But, the outlook for the current quarter — fiscal Q2 — wasn’t exactly thrilling. ConAgra is now looking for a profit of 61 cents per share, while analysts were collectively looking for a bottom line of 63 cents per share of CAG.

Petroleo Brasileiro SA – Petrobras (ADR) (PBR)

It’s no particular secret that Petroleo Brasileiro — aka Petrobras — is in dire straits thanks to the convergence of two different (and both bearish) trends. The last thing the stock needs is a reminder to the market that things look plenty bleak for PBR. That’s exactly what investors got today, however, and as bad as things looked already, they may have managed to get worse.

The latest chapter in the saga of the demise of PBR? Falling oil prices didn’t help — crude oil was off about 2% on Tuesday — but the bulk of today’s 5.5% tumble was likely the response to news that Brazil’s web of corruption may be deeper and wider than first suspected.

Although last night’s arrest of Jose Antunes Sobrinho didn’t directly stem from dealing with Petroleo Brasileiro, that news coupled with a 15-year jail-sentence for Joao Vaccari Neto (who was linked to Petrobras) raised enough red flags to leave the market wondering if more such news is on the way for all of Brazil’s state-run companies.

Mosaic Co (MOS)

Last but certainly not least, shares of fertilizer company Mosaic lost 7% of their value on Tuesday following the announcement that it would cut its potash production in step with diminished demand from the United States and the beleaguered nation of Brazil.

All told, MOS now says its potash volume in the third quarter will be closer to the lower end of its previously expected output of 1.6 million to 2 million tons. The average selling price is also expected to be closer to the low end of its previously guessed range of $260 to $280 per ton.

Still, Mosaic remains optimistic for the long haul. CEO Joc O’Rourke said:

“The long-term positive outlook for crop nutrient demand has not changed, but the industry faces some near-term challenges in the current environment. In these times, we will continue to be diligent in looking for opportunities to create shareholder value. It is a time for leadership, and we are managing our production levels to match current demand, controlling our costs, and maintaining our discipline.”

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/09/mosaic-co-mos-conagra-foods-inc-cag-petroleo-brasileiro-sa-pbr-3-todays-worst-stocks/.

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