Why Cisco Systems, Inc. (CSCO), Wal-Mart Stores, Inc. (WMT) and Regeneron Pharmaceuticals Inc (REGN) Are 3 of Today’s Worst Stocks

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It was a stop-and-go effort all session long, but by the time the closing bell rang, the strong housing start data managed to prod stocks meaningfully higher. The S&P 500‘s close of 2,187.12 was 0.47% better than Wednesday’s last trade, and left the index within reach of an all-time high.

Why Cisco Systems, Inc. (CSCO), Wal-Mart Stores, Inc. (WMT) and Regeneron Pharmaceuticals Inc (REGN) Are 3 of Today's Worst StocksThursday wasn’t a fun day for all investors though. Owners of Regeneron Pharmaceuticals Inc (NASDAQ:REGN), Wal-Mart Stores, Inc. (NYSE:WMT) and Cisco Systems, Inc. (NASDAQ:CSCO) are likely lamenting their results on Thursday.

Cisco Systems, Inc. (CSCO)

Try as he might to get investors focused on the bigger picture rather than last quarter’s results and the near-term revenue outlook, Cisco CEO Chuck Robbins couldn’t stave off the 4.8% hit CSCO shares suffered on Thursday.

Last quarter — the company’s first fiscal quarter of the year — Cisco earned 61 cents per share on sales of $12.35 billion. Both numbers topped expectations for income of 59 cents per share and revenue of $12.33 billion. But, the top line fell 2.6% on a year-over-year basis, and the company warned CSCO shareholders that sales would likely fall between 2% and 4% for the quarter currently underway.

Robbins explained the company’s transition to a service and software company was a more important consideration for CSCO owners, as that would provide more stable revenue. Investors aren’t entirely convinced the transition is going to be an easy one, however.

Wal-Mart Stores, Inc. (WMT)

Had Walmart managed to top revenue expectations and missed earnings, investors may have let it slide. With WMT topping revenue and missing sales estimates though, Walmart owners revolted.

For its third fiscal quarter of 2017, WMT earned 98 cents per share on $118.2 billion. The pros were only calling for a bottom line of 96 cents per share of Walmart, but were also expecting revenue of $118.8 billion. Income isn’t a chief concern for shareholders right now, who understand that Walmart is investing in future growth. With the revenue miss though — in addition to its dialed-back Q3 guidance — investors may be feeling WMT isn’t getting much traction on its competitive efforts

Still, e-commerce was a bright spot, and that’s a crucial part of the retailer’s revitalization plan. Digital sales were up nearly 21%. Observers cheered Walmart’s willingness and ability to take on rival Amazon.com, Inc. (NASDAQ:AMZN), but not enough to sidestep the stock’s 3% setback on Thursday.

Regeneron Pharmaceuticals Inc (REGN)

Last but not least, bio pharma company Regeneron Pharmaceuticals watched its stock pull back to the tune of 3.7% today following last night’s news that it and Sanofi SA (ADR) (NYSE:SNY) did not stop a trial of cholesterol-fighting drug Praluent in one of its current studies.

It sounds a bit counterintuitive for REGN without the right context, but there’s a rational to the response.

There had been some previous chatter that the trial was going so well and demonstrating so much efficacy that the companies wouldn’t even need to complete it as initially described in the trial’s plans. Rather, it would simply take the data it had and present that to the Food and Drug Administration as a completed trial. That’s not going to happen now, however. Rather, REGN and SNY are going to see it through to the end.

Investors broadly interpreted that decision as a sign that the drug’s efficacy may not be as wildly superior as once expected.

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/2016/11/why-cisco-systems-inc-csco-wal-mart-stores-inc-wmt-and-regeneron-pharmaceuticals-inc-regn-are-3-of-todays-worst-stocks/.

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