Why Chesapeake Energy, Endeavour Silver, and Shopify Slumped Today
Tuesday was a quiet but solid day for the stock market, with most major benchmarks easing minimally higher. Investors continued to balance the favorable performance of the overall U.S. economy and many individual companies against the uncertainties in the realms of Washington politics and global monetary policy going forward. Despite good news from some high-profile companies, several well-known individual names saw substantial declines. Chesapeake Energy (NYSE: CHK), Endeavour Silver (NYSE: EXK), and Shopify (NYSE: SHOP) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Chesapeake Energy lost over 6.5% even though the day was a generally positive one for energy companies more broadly. Oil prices surged by more than $1 per barrel, approaching the $51 mark. Yet analysts at Jefferies singled out Chesapeake as an underperformer in the energy industry, cutting their rating on the stock from hold to underperform and setting a $2 price target. Jefferies cited high fixed costs and less favorable assets than some of its peers in setting a target that's almost 50% below where Chesapeake now trades even after today's losses, and the energy company will have to respond with aggressive strategic moves in order to prove the analyst firm wrong.
Image source: Chesapeake Energy.
Source: Fool.com