Why SUPERVALU, Synchronoss Technologies, and Allergan Slumped Today

Wednesday was generally a good day for the stock market, with major benchmarks posting solid gains. Broad measures like the S&P 500 and the Nasdaq Composite were up just modestly from Tuesday's close, but the Dow Jones Industrial Average enjoyed an impressive triple-digit advance on the back of its oldest tech component. Yet even though the general sentiment among market participants was positive, some stocks were held back. SUPERVALU (NYSE: SVU), Synchronoss Technologies (NASDAQ: SNCR), and Allergan (NYSE: AGN) 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 SUPERVALU dropped 12% after the company reported fiscal second-quarter financial results and announced an acquisition. The grocery store operator and distributor said that sales rose by more than a third from year-ago levels, thanks largely to a nearly 60% increase in revenue from the company's wholesale distribution segment following the acquisition of Unified Grocers. Yet the retail side of the business was weak, with same-store sales down 3.5%. SUPERVALU agreed to acquire Associated Grocers of Florida in a transaction worth about $180 million, letting SUPERVALU expand into a new part of Florida and opening up an international customer base in the Caribbean and elsewhere. Yet investors seem uncertain about SUPERVALU's new distribution emphasis, and they'd prefer to avoid seeing retail results come in so weak.

Image source: Supervalu.

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Source: Fool.com