10 Biggest Losers This Week

In this article, we will take a look at the 10 biggest losers this week.

U.S. stocks turned green in the mid-day trading session on Friday, October 21. The surge was apparently driven by reports suggesting that the Federal Reserve may opt for a smaller rate hike in its next meeting. As of 11:49 AM ET, S&P 500 was up 0.71 percent, Dow Jones Industrial Average was positive 0.89 percent and Nasdaq Composite rose 0.78 percent.

Meanwhile, Snap Inc. (NYSE:SNAP), Verizon Communications Inc. (NYSE:VZ) and Tenet Healthcare Corporation (NYSE:THC) made their way into the headlines after posting their Q3 results.

Shares of Snap Inc. and Tenet Healthcare Corporation lost nearly 30 percent of their value on Friday morning following their mixed quarterly performances. On the other hand, Verizon Communications Inc. shares fell after disclosing lower-than-expected wireless subscriber additions for Q3.

Meanwhile, Whirlpool Corporation (NYSE:WHR) and Robert Half International Inc. (NYSE:RHI) also lost some value this week. We will discuss the reasons behind the downward movement of these stocks in the remaining article.

10. The Western Union Company (NYSE:WU)

Number of Hedge Fund Holders: 21

Shares of The Western Union Company (NYSE:WU) fell more than five percent this week. The drop was partly attributed to its preliminary financial results for the third quarter.

The Western Union Company recently announced its preliminary results for Q3. The financial services company expects its sales to decrease around 15 percent versus the same quarter of 2021. The company blamed the suspension of business activities in Russia for the weakness.

Moreover, The Western Union Company also reaffirmed its financial outlook for the full year. It expects its sales to decline in the range of 11 – 13 percent on a year-over-year basis. Moreover, it continues to expect adjusted earnings between $1.75 – $1.85 per share for the same period.

9. PPG Industries, Inc. (NYSE:PPG)

Number of Hedge Fund Holders: 22

Shares of PPG Industries, Inc. (NYSE:PPG) slid over five percent earlier this week after missing profit and sales expectations for the third quarter. The specialty materials company earned $1.66 per share on an adjusted basis, down from $1.69 per share in the year-ago period and below the consensus of $1.83 per share.

Revenue for the quarter inched up two percent versus last year to $4.5 billion but missed the consensus of $4.57 billion. PPG Industries, Inc. primarily took a hit from inflationary cost pressures during the quarter.

Looking forward, PPG Industries, Inc. expects adjusted earnings in the range of $1.05 – $1.20 per share for the fourth quarter.

8. Whirlpool Corporation (NYSE:WHR)

Number of Hedge Fund Holders: 24

Shares of Whirlpool Corporation plummeted over seven percent this week. The home appliances manufacturer recently announced weak financial results for the third quarter amid weak demand.

Whirlpool Corporation reported earnings of $4.49 per share, behind the consensus of $5.52 per share. Revenue for the quarter fell nearly 13 percent on a year-over-year basis to $5.49 billion, missing the expectations of $5.21 billion.

For fiscal 2022, Whirlpool Corporation now expects earnings of about $19 per share, down from its previous projection between $22 – $24 per share. The updated outlook also missed the consensus of $21.76 per share.

Speaking on the results, CEO of Whirlpool Corporation, Marc Bitzer, said in a statement:

“While our Q3 results were impacted by ongoing macroeconomic headwinds and continued elevated levels of inflation that resulted in slowing demand, we remain on track to deliver the second-best year in our 111-year history in 2022.”

7. Robert Half International Inc. (NYSE:RHI)

Number of Hedge Fund Holders: 36

Robert Half International Inc. posted disappointing financial results for the third quarter, sending its shares down more than 10 percent on Friday morning. Overall, the stock has declined nearly 14 percent this week.

The specialized talent solutions firm reported earnings of $1.53 per share, unchanged from last year and below the consensus of $1.62 per share. Revenue came in at $1.833 billion, from $1.713 billion in the corresponding period of 2021. Analysts expected Robert Half International Inc. to generate revenue of $1.92 billion

Besides Robert Half International Inc., Snap Inc., Verizon Communications Inc. and Tenet Healthcare Corporation were also among the 10 biggest losers of the week.

6. The Allstate Corporation (NYSE:ALL)

Number of Hedge Fund Holders: 37

Shares of The Allstate Corporation (NYSE:ALL) plummeted nearly 10 percent this week after the Illinois-based insurer announced estimated results for the third quarter that disappointed investors.

The Allstate Corporation guided for an adjusted loss in the range of $400 – $450 million for Q3. On the contrary, analysts were looking for adjusted earnings of around $256 for the quarter.

Meanwhile, a couple of market research firms cut their price targets for The Allstate Corporation on Thursday, October 20, following the latest update. Barclays reduced its price target for Allstate from $127 to $112, while Wells Fargo trimmed its price target from $112 to $100.

5. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 43

Shares of Snap Inc. lost nearly 30 percent of their value on Friday morning, bringing the stock to the list of 5 biggest losers this week. The drop came after the social media firm delivered mixed results for the third quarter.

Snap Inc. earned 8 cents per share on an adjusted basis, above analysts’ average estimate for breakeven earnings. However, its quarterly revenue of $1.13 billion was marginally below the consensus of $1.14 billion.

Moving forward, Snap Inc. expects sales growth to drop in the current quarter. However, the company didn’t issue any specific outlook for Q4, citing an uncertain operating environment.

4. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 58

Shares of Verizon Communications Inc. fell nearly six percent this week, primarily after the telecommunications giant reported a drop in its third-quarter profit.

Verizon Communications Inc. reported adjusted earnings of $1.32 per share, down from $1.42 per share in the year-ago period. Revenue for the quarter increased 4 percent versus last year to $34.2 billion. Nevertheless, the results were better than the consensus of $1.29 per share for earnings and $33.78 billion for revenue.

On the downside, Verizon Communications Inc. added 8,000 new wireless phone subscribers during Q3, significantly lower than the 35,400 additions projected by analysts.

3. Tenet Healthcare Corporation (NYSE:THC)

Number of Hedge Fund Holders: 61

Shares of Tenet Healthcare Corporation plummeted to a new low this week after the healthcare services company issued a weak financial outlook for the fourth quarter.

Tenet Healthcare Corporation guided for adjusted earnings in the range of $1 – $1.54 per share and revenue between $4.82 – $5.02 billion for the current quarter. The guidance missed the consensus of $1.80 per share for earnings and $5.04 billion for revenue.

The company issued the forecast along with its Q3 results on Thursday, October 20. Tenet Healthcare Corporation reported adjusted earnings of $1.44 per share, down from $1.99 per share in the year-ago period but above Wall Street estimates of $1.24 per share. Revenue for the quarter also decreased to $4.8 billion, from $4.89 billion last year. However, it was almost in line with the consensus forecast.

2. HCA Healthcare, Inc. (NYSE:HCA)

Number of Hedge Fund Holders: 63

Shares of HCA Healthcare, Inc. (NYSE:HCA) tumbled nearly nine percent this week. Much of that drop came on Friday, October 21, after the healthcare facilities operator posted lower-than-expected sales for the third quarter.

HCA Healthcare, Inc. generated revenue of $14.97 billion in the quarter, marginally below the consensus of $15 billion. On the bright side, its adjusted earnings of $3.93 per share surpassed the expectations of $3.88 per share.

Moreover, HCA Healthcare, Inc. reaffirmed its profit outlook for the full year despite weak Q3 sales and macroeconomic challenges. It continues to expect adjusted earnings in the range of $16.40 – $17.60 per share for the year.

Separately, HCA Healthcare, Inc. appeared in the second-quarter 2022 investor letter of investment advisor Diamond Hill Capital Management. Here’s what the firm said:

“HCA Healthcare, Inc. (NYSE:HCA) is a best-in-class operator of acute care hospitals and other health care facilities, including outpatient surgery centers. It has a strong market presence in highly attractive geographies with growing populations and low unemployment, such as Texas and Florida, which leads to a favorable payor mix. We are further attracted to its strong management team that has a stellar track record of deploying capital, and the founding family continues to own almost a quarter of the business. We initiated a position after HCA reported Q1 earnings — it reduced full year guidance due to increased labor costs and lower-than-expected acuity among COVID admissions, dampening near-term investor sentiment.”

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 65

Shares of Union Pacific Corporation (NYSE:UNP) slid nearly five percent this week after the railroad giant slashed its annual volume growth outlook amid a slowdown in intermodal demand and labor challenges.

Union Pacific Corporation now expects volume growth of around 3 percent for the full year, down from its previous growth projection between 4 – 5 percent.

Meanwhile, Susquehanna analyst Bascome Majors cut his price target for Union Pacific Corporation from $208 per share to $200 on Friday, October 21. The analyst was primarily moved by the company’s cautious commentary on inflationary challenges.

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This article is originally published at Insider Monkey.