Why Chicago Bridge & Iron, Hertz Global Holdings, and GoPro Slumped Today
Wall Street had another quiet trading day on Wednesday, with major benchmarks generally gaining ground but not straying too far from where they began the session. Outrage from key business leaders about the Trump administration's response to violence at a white supremacist rally in Charlottesville created new doubts about the White House's ability to move forward with its domestic agenda, but investors didn't draw any negative conclusions about the potential impact on pro-market positions. Some company-specific news weighed on certain stocks, and Chicago Bridge & Iron (NYSE: CBI), Hertz Global Holdings (NYSE: HTZ), and GoPro (NASDAQ: GPRO) 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 Chicago Bridge & Iron dropped 11%, adding to losses that have cost the stock nearly half its value just since the beginning of August. The biggest part of the declines came as a result of financial results that included the suspension of the engineering and construction company's dividend and an unexpectedly large revenue drop, as well as a net loss. Adding insult to injury today was a downgrade from analysts at Jefferies, which reduced their rating on the stock from buy to hold. Although the analysts believe that the choice to sell off CB&I's technology business represented "decisive action" and was "commendable," numerous fixed-price contracts still leave the company exposed to cost overruns that could cause further damage in the future.
Image source: Chicago Bridge & Iron.
Source: Fool.com
