Ten firms ended Tuesday suffering a sell-off, as investor sentiment continues to be dampened by macroeconomic uncertainties and bearish outlooks from analysts and their management.
The stocks–three of which belong to the travel and tourism industry–registered losses following lower outlook guidance, taking into account the potential effects of President Donald Trump’s trade war with other countries.
The pessimistic sentiment mirrored the broader market decline, with the Dow Jones slashing another 1.14 percent during the day, the S&P dropping 0.76 percent, and the Nasdaq dipping 0.18 percent.
To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.
Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels
10. Tractor Supply Co. (NASDAQ:TSCO)
Tractor Supply saw its share prices drop by 5.75 percent on Tuesday to close at $53.92 apiece as investors sold off positions to mitigate risks from the potential impact of the ongoing trade war on its business.
The company, which sells a range of products from pet supplies to home improvement, stands to hurt from expected price increases and supply chain disruption as a result of the ongoing trade war.
Other retail giants have already signaled earlier that higher prices would likely result in rising prices of products and could significantly impact profit margins.
Despite uncertainties, an analyst from Piper Sandler on Tuesday gave TSCO an “overweight” rating with a consistent price target of $65, saying that the firm is expected to benefit from the robust demand for backyard chickens which is targeted to contribute between 1 and 1.5 percent in sales in the first semester of the year.
9. Clarivate Plc (NYSE:CLVT)
Clarivate dropped for a second straight day on Tuesday, losing 6 percent to end at $4.07 each as investors sold off positions amid the lack of fresh catalysts to boost buying appetite.
CLVT, a data and analytics company, has earned a generally pessimistic outlook from analysts.
Following its earnings results last month, nine analysts gave the company a consensus revenue target of $2.39 billion, representing a 6.5-percent decline from its full-year 2024 revenue.
The loss per share is expected to decrease in the future by 89 percent to $0.11 each.
Prior to its earnings outcome, analysts covering the company initially gave CLVT a revenue target of $2.55 billion and a loss per share of $0.054.
8. Verizon Communications Inc. (NYSE:VZ)
Verizon snapped a three-day winning streak on Tuesday, losing 6.58 percent to end at $43.43 apiece as investor sentiment was dampened by expectations of lower subscriber count in the quarter.
At a conference organized by Deutsche Bank on Tuesday, VZ Chief Revenue Officer Frank Boulben said that the company expects soft subscriber growth after a challenging quarter, primarily due to growing competition coupled with the impact of price increases.
In a regulatory filing, gross new additions in the first quarter are expected to go flat or down from a year earlier.
Last January, VZ raised its prices for customers with five or more phone lines and those on older mobile plans that it no longer offers.
7. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Sirius XM declined by 6.93 percent on Tuesday to close at $22.70 apiece as expectations of softer advertising spending have weighed down on the company’s shares.
At a Deutsche Bank conference on Tuesday, SIRI Chief Finance Officer Tom Barry raised concerns on the lower advertising spending, saying that SIRI has been experiencing a recent pullback in advertising from consumer packaged goods and retail industries over the past few months.
Barry also feared that the lower ad activities could dribble down to other sectors amid the ongoing trade war between the United States and its trading partners, which could further impact profit margins.
SIRI, an American broadcasting company, derives a huge portion of its revenues from advertising. However, the past two years saw a lower number of subscribers for the company due to inflationary pressures.
6. Elanco Animal Health Inc. (NYSE:ELAN)
Elanco dropped its share prices by 7.04 percent on Tuesday to end at $10.04 apiece following news that it was being investigated by shareholder law firms for potential securities violations.
In separate statements, the shareholder law firms announced they had initiated their own investigations against ELAN for allegedly issuing materially false and misleading statements regarding its business, operations, and prospects.
A class action lawsuit has already been filed against the company claiming that ELAN failed to disclose that its Zenrelia drug was less safe that it led investors to believe, it was unlikely to meet the timeline for the US approval and commercial launch for its Zenrelia and Credelio Quattro treatments, and that its financial prospects were overstated.
ELAN has yet to issue a statement on the allegations.
5. Delta Air Lines Inc. (NYSE:DAL)
Delta Air fell by 7.25 percent on Tuesday to finish at $46.68 apiece after announcing a lower sales outlook for the first quarter of the year.
In a regulatory filing, DAL said it now expects first quarter revenues to rise by less than 5 percent year-on-year, down from its previous forecast of 6 to 8 percent.
Earnings per share forecast was also lowered to between $0.30 and $0.50 from its previous guidance of $0.70 to $1 apiece.
“The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand,” the company said.
In a separate comment on CNBC, DAL Chief Executive Officer Ed Bastian said that while he does not expect a recession under the new administration, the weaker outlook guidance was mostly based on dampened consumer confidence, saying that its customers are now pulling back on bookings.
4. Expedia Group Inc. (NASDAQ:EXPE)
Expedia Group retreated for a second day on Tuesday as investors repositioned portfolios following the dismal outlook guidance from the airline industry that dampened buying appetite for the travel and tourism sector.
During the last trading session, EXPE slashed its share prices by 7.28 percent to end at $163.75, tracking the bearish outlook for the industry by Delta Airlines, American Airlines, and Southwest Airlines, each lowering estimates for revenues, earnings per share, and seat miles following uncertainties brought about by the ongoing trade war between the United States and its trading partners.
Last year, EXPE registered a strong earnings performance in both the fourth quarter and the full year of 2024.
In its latest earnings release, the company said that attributable net income for the last quarter soared 124 percent to $299 million from the $132 million registered in the same period in 2023. Revenues, meanwhile, increased by 10 percent to $3.184 billion from $2.887 billion.
For the full year, attributable net income surged 55 percent to $1.234 billion from the $797 million registered in 2023, as revenues inched up by 7 percent to $13.69 billion from $12.389 billion year-on-year.
3. American Airlines Group Inc. (NASDAQ:AAL)
American Airlines fell for the fourth consecutive day on Tuesday, losing 8.32 percent to end at $11.46 each as lower earnings estimates for the first quarter of the year weighed down on investor sentiment.
In a regulatory filing, AAL said revenues for the first quarter of the year are now expected to remain flat from the same period last year. Previously, AAL expected revenues to inch up by 3 to 5 percent.
Meanwhile, available seat miles were also expected to remain flat, as compared with its previous flat to 2-percent growth guidance.
“Since the Company’s initial first-quarter guidance issued on January 23, 2025, the revenue environment has been weaker than initially expected due to the impact of Flight 5342 and softness in the domestic leisure segment, primarily in March. First-quarter total revenue is now expected to be approximately flat versus the first quarter of 2024. Based on these updated assumptions, the Company expects its adjusted loss per diluted share to be approximately ($0.60) to ($0.80),” the carrier said.
2. Teradyne Inc. (NASDAQ:TER)
Teradyne dropped for a second day on Tuesday, slashing 17.05 percent to finish at $87.07 each, following its revised and lowered guidance in response to the potential impact of President Donald Trump’s tariff threats.
In a presentation ahead of its Investor Day, TER said that it now expects second quarter revenue to be flat or lower by 10 percent from the first quarter of the year and up by between 5 to 10 percent on a full-year basis. Outlook for the first quarter, however, remained unchanged.
Meanwhile, TER expects earnings per share and revenues for the fiscal year 2026 to settle “at the low end of the previous 2026 earnings model.”
TER is an automated test equipment and robotics company whose clients include Samsung, Qualcomm, Intel, Analog Devices, IBM, and Texas Instruments, among others.
1. Asana Inc. (NYSE:ASAN)
Asana nosedived by 24.22 percent on Tuesday to end at $12.64 each as investors sold off positions following the resignation of its chief executive officer, and a weak outlook guidance for fiscal year 2026.
According to the company, its co-founder and CEO Dustin Moskovitz decided that he will step down from his post as soon as his replacement is named. He, however, will continue to be a member of the board and retain his shareholdings in the company.
For the first quarter of the fiscal year 2026, ASAN expects adjusted earnings per share of $0.02 on revenues of $184.5 million to $186.5 million.
The revenue outlook fell short of the $191 million as expected by analysts.
Meanwhile, ASAN said it also expects revenue of $782 million to $790 million for the full year, short of the $803.5 million analysts had been expecting.
While we acknowledge the potential of ASAN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASAN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.
