Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Advanced Micro Devices, Inc. (AMD), Western Digital Corp. (WDC): Tuesday’s 3 Worst Stocks

Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.

Editor’s note: This article was originally published yesterday, post market close.

There was good reason for the S&P 500 (INDEXSP:.INX) to fall today, as Wall Street grew more concerned about increasing tensions arising from Syria’s alleged use of chemical weapons on civilians last week. While the shift away from risky investments like stocks makes some sense intuitively in the short term, it has almost always been a losing position in the long run. Today’s worst-performing S&P stocks, unfortunately, were the victims of Mr. Market’s psychology of fear that ran rampant on the Street today. The S&P 500 shed 1.6%, or 26 points, ending at 1,630 Tuesday.

Advanced Micro Devices, Inc. (NYSE:AMD)Chipmaker Advanced Micro Devices, Inc. (NYSE:AMD), for instance, plunged 5.3% today, despite little company-specific news that could realistically be credited with such a decline. Think about it: Is AMD — holistically, as a company — really worth 5% less than it was just a day ago, merely because some suits on Wall Street got spooked about the Middle East? The Syrian conflict, I agree, is a massively important geopolitical issue. But how does Syria have such a colossal influence over the price of a semiconductor stock?

Western Digital Corp. (NASDAQ:WDC) appears to be another victim of illogical bearishness Tuesday. The stock, which lost 5.2% today, is already 50% more volatile than the broader market, and with the technology sector stumbling 2.2% today, the data storage company didn’t stand a chance. To be fair to the market’s mind-set for a moment, Western Digital’s results are pretty darn volatile in their own right — on an absolute basis, the company averages a 100% net change in yearly profits over the last four fiscal years. That’s not exactly a pillar of consistency.

Lastly Boston Scientific Corporation (NYSE:BSX) shed 5.2% today, as the $14 billion medical devices company took a big blow. Not surprisingly, the stock is also highly volatile, and unlike Western Digital Corp. (NASDAQ:WDC) Boston Scientific doesn’t pay any dividend. Zilch. That didn’t go over well with investors Tuesday, as money migrated to safer investments: companies, for instance, that haven’t lost over $1 billion in four of the past five years, like Boston Scientific has..

The U.S. government has piled on more than $10 trillion of new debt since 2000. Annual deficits topped $1 trillion after the financial crisis. Millions of Americans have asked: What the heck is going on? The Motley Fool’s new free report, “Everything You Need to Know About the National Debt,” walks you through with step-by-step explanations about how the government spends your money, where it gets tax revenue from, the future of spending, and what a $16 trillion debt means for our future. Click here to read the full report!

 

The article Today’s 3 Worst Stocks originally appeared on Fool.com.

Fool contributor John Divine has no position in any stocks mentioned. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.The Motley Fool owns shares of Western Digital. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Loading Comments...