Why Harley-Davidson, Tile Shop Holdings, and Chipotle Mexican Grill Slumped Today
Markets were mixed on Tuesday, as positive moves for the Nasdaq Composite were offset by declines for the Dow Jones Industrials. Earnings were largely responsible for the Dow's pullback, as a high-priced financial stock in the average dropped after releasing its second-quarter earnings report and had a disproportionately large impact on the price-weighted benchmark. For the Nasdaq, strong quarterly results from the leading video-streaming specialist helped buoy investor sentiment. Overall, investors seemed content to tread water waiting for earnings season to kick into high gear.
Yet some stocks suffered from bad news, and Harley-Davidson (NYSE: HOG), Tile Shop Holdings (NASDAQ: TTS), and Chipotle Mexican Grill (NYSE: CMG) 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 Harley-Davidson declined 6% after the motorcycle maker reported its second-quarter financial results. Revenue fell almost 7% on an even larger drop in domestic sales, and earnings were down despite substantial cost savings on reduced overhead expenses. More worrying was Harley-Davidson's guidance for the remainder of the year, which included a big downgrade in the number of motorcycles it expects to ship this year. Harley now thinks that shipments could drop 6% to 8%, compared to previous expectations for flat unit sales. As demographics continue to move against the industry, Harley-Davidson will have to fight to preserve its brand strength and to make its sales rebound.
Source: Fool.com
Chipotle Mexican Grill Inc. Stock
The stock is one of the favorites of our community with 57 Buy predictions and 1 Sell predictions.
With a target price of 3082 € there is a slightly positive potential of 4.3% for Chipotle Mexican Grill Inc. compared to the current price of 2955.0 €.
