In this article, we discuss the 5 stocks losing value today. If you want to read our detailed analysis of these companies, go directly to These 10 Stocks are Losing Value Today.
5. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 38
Shares of Walgreens Boots Alliance, Inc. (NASDAQ:WBA) hit a new 52-week low of $38.57 on Thursday morning after announcing the financial results for its fiscal third quarter. The Illinois-based company reported adjusted earnings of 96 cents per share, down 30 percent versus the same period of 2021.
Its quarterly revenue also slipped 4.2 percent on a year-over-year basis to $32.6 billion. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) blamed the fading demand for coronavirus vaccinations for weak sales.
Earlier this year, investment management firm Aristotle Capital Management talked about Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its first-quarter 2022 investor letter, stating:
“We first invested in Walgreens Boots Alliance in early 2013. Over our holding period, Walgreens merged with U.K.-based Boots Alliance, establishing itself as a global leading retail pharmacy chain. CEO Stefano Pessina set the company on a path of pursuing strategic partnerships (as opposed to vertical integration deals) to increase store traffic and to, over time, transform the business into a neighborhood health destination around a more modern pharmacy. Using its strong FREE cash flow generation, the company ramped up its investments in technology, aiming to accelerate the digitalization of health information. Mr. Pessina was not successful, however, at turning around the firm’s U.S. retail segment and had to deal with increasing prescription drug reimbursement pressures. He stepped down as CEO in 2020, and in 2021, Roz Brewer took the reins of the firm. We admire Ms. Brewer’s impressive track record at companies that include Starbucks (NASDAQ:SBUX) and Walmart (Sam’s Club). However, given management’s decision to divest core cash-generative businesses and redeploy capital to embryonic healthcare startups, we prefer to step aside while we follow the company’s progress.”
4. Universal Health Services, Inc. (NYSE:UHS)
Number of Hedge Fund Holders: 40
Shares of Universal Health Services, Inc. (NYSE:UHS) fell over eight percent in the pre-market trading session today after the provider of healthcare services trimmed its financial outlook for fiscal 2022.
Universal Health Services, Inc. (NYSE:UHS) now expects adjusted earnings in the range of $9.60 – $10.40 per share for the year ending December 31, 2022, down from its previous projection of $11.90 – $12.90 per share.
In addition, Universal Health Services, Inc. (NYSE:UHS) lowered its full-year sales outlook to a range of $13.24 – $13.37 billion, versus its earlier guidance of $13.42 – $13.69 billion. The company blamed lower patient volumes for the revised forecast.
3. RH (NYSE:RH)
Number of Hedge Fund Holders: 63
RH (NYSE:RH) shares hit a new 52-week low in the pre-market trading session today after the high-end furniture maker once again slashed its revenue outlook for the full year, citing rising mortgage rates and deteriorating sales of luxury homes.
The California-based company expects demand for its products to drop in the second half of the year. RH (NYSE:RH) now anticipates 2022 sales to decline between 2 – 5 percent. Few weeks ago, it projected full-year sales in the range of flat to up 2 percent.
Separately, investment management firm Polen Capital mentioned RH (NYSE:RH) in its first-quarter 2022 investor letter, stating:
“RH is a furniture store company with brand recognition and a unique business model. The company’s stock price fell sharply over the first three months of 2022 despite solid operating results, which resulted in what we believed to be an attractive opportunity to add to our position in the company. We are mindful that, on the margin, the company is certainly experiencing some early impact from record inflation and rising interest rates, and we feel comfortable in both the management team’s ability to navigate these challenges and the power of the company’s brand and its long-term potential.”
2. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 66
Shares of Airbnb, Inc. (NASDAQ:ABNB) hit a new 52-week low of $86.71 today after receiving a price-target cut from JPMorgan. The research firm lowered its price target for Airbnb, Inc. (NASDAQ:ABNB) from $185 per share to $110 per share, citing the deteriorating macro environment and record inflation.
The drop also follows the company’s announcement of permanently banning large gatherings across its globally listed properties. The ban also applies to disruptive parties and open-invite events. Airbnb, Inc. (NASDAQ:ABNB) said it would take strict action against those breaching the new regulations.
1. Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 73
Shares of Caesars Entertainment, Inc. (NASDAQ:CZR) fell over five percent on Thursday morning apparently due to a potential strike from workers. The workers’ union is trying to negotiate new contracts with multiple properties, including the properties of Caesars, located in Atlantic City.
The union has set a deadline of Friday midnight. If the agreement is not reached by then, the workers plan to strike during the upcoming long holiday weekend that could cost these casino owners, including Caesars Entertainment, Inc. (NASDAQ:CZR), millions of dollars.
Earlier this year, Caesars Entertainment, Inc. (NASDAQ:CZR) appeared in the fourth-quarter 2021 investor letter of investment management firm Carillon Tower Advisers. Here’s what the firm said:
“Caesars Entertainment, a diversified casino-entertainment and resort company, underperformed in the period as its quarterly earnings update was viewed as disappointing by investors. The firm highlighted a number of one-time headwinds that ultimately weighed on margins, as well as some negative impacts brought on by the surge in COVID cases. Despite this, we believe that the sizeable overall margin improvements Caesars has realized coming out of the pandemic will ultimately prove sustainable in the long run.”
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