Why National Beverage, Tesaro, and Community Health Systems Slumped Today

Wall Street had a relatively good day on Thursday, and the Dow, S&P 500, and Nasdaq Composite all enjoyed gains of between 0.1% and 0.2% for the trading session. A lack of any new controversy out of Washington supported positive sentiment, and Janet Yellen wrapped up her testimony before Congress with further comments that investors took as encouraging for the future of central bank policy and its impact on the financial markets on the whole. Yet some stocks trended in the opposite direction, as negative news led to concerns about their future prospects. National Beverage (NASDAQ: FIZZ), Tesaro (NASDAQ: TSRO), and Community Health Systems (NYSE: CYH) 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 National Beverage dropped more than 8% even though the seller of LaCroix sparkling water and other beverages reported good performance in its fiscal fourth-quarter financial report. The company said that revenue for the 2017 fiscal year climbed 15% from year-ago levels, resulting in a 75% boost to net income and earnings per share for the year. The move away from traditional soda toward sparkling water has been a godsend for National Beverage, as it has benefited from greater sales and cost advantages since sparkling water naturally avoids most of the expense of syrup that goes into most soda products. The company also said that May and June have been record months to begin the new fiscal year, and it's making progress in promoting its well-known Shasta brand as a sparkling-water soft-drink alternative. After nearly doubling over the past year, however, National Beverage stock might simply have gotten ahead of itself, and that might be the motivation for today's declines.

Image source: National Beverage.

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Source: Fool.com