Why Snap Inc (SNAP), Groupon Inc (GRPN) and Huntington Bancshares Incorporated (HBAN) Are 3 of Today’s Worst Stocks

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After opening fairly deep in the red, the bulls tried to dig their way out of that hole. They did a pretty good job too, but could never quite get over the hump. The S&P 500’s close of 2,472.5 was 0.04% less than Thursday’s last trade, with the market unable to even get into the black temporarily today.

Why Snap Inc (SNAP), Groupon Inc (GRPN) and Huntington Bancshares Incorporated (HBAN) Are 3 of Today's Worst StocksNevertheless, the market hit record highs this week, and the overarching momentum remains bullish.

That didn’t do Groupon Inc (NASDAQ:GRPN), Snap Inc (NYSE:SNAP) and Huntington Bancshares Incorporated (NASDAQ:HBAN) investors any good though. These three names did the most damage to portfolios on Friday, but for understandable reasons.

Huntington Bancshares Incorporated (HBAN)

Based on nothing more than the headlines, Huntington Bancshares should have been up today. The company topped its fiscal second-quarter expectations — reporting record earnings to boot — and didn’t release its earnings with the stock well overbought. Yet, there it is. HBAN fell 4.3% in the shadow of good news.

Last quarter, Huntington Bancshares earned an operating profit of 26 cents per share on sales of $1.17 billion. Analysts were only calling for a bottom line of 23 cents per share of HBAN and revenue of $1.07 billion. The trouble was found on all the other lines of the income statement. Namely, non-interest expenses grew 33%, offsetting a big chunk of its revenue growth, while charge-offs grew from only 0.13% of its total loan portfolio to 0.21% this time around.

Snap Inc (SNAP)

Don’t look for a specific reason Snap (the parent company of Snapchat) was down 2.8% today. You won’t find it. Rather, just know that the company is increasingly struggling to withstand the pessimism that seems to be increasingly piled on the company.

The latest chapter in the saga: A couple of downgrades have spooked SNAP shareholders. A downgrade in and of itself isn’t the end of the world — companies have survived worse opinions. These two downgrades were alarmingly noteworthy though, as they came from two of the recent IPO’s underwriters who were touting the stock to investors just a few months ago.

That being said, another swath of investors may have thrown in the towel when they realized CEO Evan Spiegel’s bride Miranda Kerr was more than happy to use rival messaging platform Instagram to show off her wedding photos, and after learning the couple has been vacationing quite nicely while his company is unraveling and SNAP stock is tanking.

Groupon Inc (GRPN)

Last but not least, the 30% rally Groupon shares had mustered since their mid-June low made them vulnerable to a profit-taking pullback. But, blame Bank of America for the nudge that knocked the stock all the way off that perch though.

After sliding 4% yesterday, the stock fell another 4.7% on Friday after BofA analyst Akshay Bhatia flatly said investors just expect too much from the still-struggling online-deals company. Specifically, Bhatia’s EBITDA outlook for 2018 and 2019 are 16% and 20% lower, respectively, than the average analyst’s.

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


Article printed from InvestorPlace Media, https://investorplace.com/2017/07/why-snap-inc-snap-groupon-inc-grpn-and-huntington-bancshares-incorporated-hban-are-3-of-todays-worst-stocks/.

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