Why Teleflex Incorporated (TFX) Went Down On Friday?

We recently published a list of 10 Battered Stocks on Friday. In this article, we are going to take a look at where Teleflex Incorporated (NYSE:TFX) stands against other battered stocks on Friday.

The stock market ended the trading week in the green territory, with all major indices gaining more than 1 percent after slipping into the negative territory at intra-day trading following a clash between US President Donald Trump and Ukrainian leader Volodymyr Zelensky at the White House.

Following the televised meeting, the two leaders concluded the encounter without a deal for joint development of mineral resources.

The Dow Jones jumped by 1.39 percent, the S&P 500 surged by 1.59 percent, and the Nasdaq soared by 1.63 percent.

Ten companies bucked a broader market optimism, with three stocks heavily battered by disappointing earnings results, losing more than 20 percent in their valuations.

In this article, we have detailed the reasons behind their weak performance.

To come up with Friday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A doctor in their office, consulting with a patient about the benefits of the company’s interventional urology products.

Teleflex Incorporated (NYSE:TFX)

Teleflex Incorporated (NYSE:TFX) dropped for a second day on Friday, losing 4.57 percent to finish at $132.75 apiece as investors turned cautious following a series of news that included the company’s plan to split into two businesses, the resignation of an executive, and a shareholder law firm’s investigation into the company.

According to Teleflex Incorporated (NYSE:TFX), its board of directors has approved pursuing a plan to separate its Urology, Acute Care, and OEM businesses into a new publicly traded company called NewCo through the distribution of newly issued shares of NewCo to shareholders.

Meanwhile, the soon-to-be-separated RemainCo is expected to be “well-positioned to accelerate growth in attractive, primarily hospital-focused, emergent end markets, with a simplified operating model, streamlined manufacturing footprint and increased management focus.”

Separately, a shareholder law firm said it kicked off a probe into the stock’s sudden 20-percent drop to determine possible violations of federal securities laws.

Overall, TFX ranks 10th on our list of battered stocks on Friday. While we acknowledge the potential of TFX 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 TFX but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.