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.

Why Ctrip, Jabil, and Three Other Stocks Are Trading Down Today

Page 1 of 2

Markets were surging on Thursday, with all major U.S. stock indexes trading up at least 0.1%, and oil and gold registering substantial gains. However, a few stocks, including Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), Jabil Circuit, Inc. (NYSE:JBL), Horizon Pharma PLC (NASDAQ:HZNP), Endo International plc – Ordinary Shares (NASDAQ:ENDP), and Guess?, Inc. (NYSE:GES) have registered substantial losses. So, let’s take a look into the events driving these declines, and into what the hedge funds in our database think about the companies involved.

Our research determined that following the small-cap stocks, that hedge funds are collectively bullish on, can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).

Let’s start with Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), whose stock dipped after the opening bell, but has recovered since then and is currently less than 1% in the red. On Wednesday evening, the company posted fourth-quarter earnings of $0.11 per share, $0.05 above consensus, on revenue of RMB2.87 billion ($440 million), up 50.3% year over year, and RMB60 million ($9.27 million) ahead of estimates. However, guidance for the first quarter came in quite light. Management said it expects revenue to grow between 75% and 80%, but this figure would include, for the first time ever, results from the merger with Qunar Cayman Islands Ltd (NASDAQ:QUNR). So, a few analysts decided to break down the number, and came up with 30% to 35% growth for Ctrip. And, while this seems impressive, it still implies a marked deceleration from the company’s recent rates.

Follow Ctrip Com Intl Ltd (NASDAQ:CTRP)
Trade (NASDAQ:CTRP) Now!

Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) is trading down about 9.6% year-to-date, having underperformed the market. Among the funds we track, Ken Fisher‘s Fisher Asset Management disclosed ownership of 8.83 million shares of the company, valued at more than $409 million at the end of 2015.

Next up is Jabil Circuit, Inc. (NYSE:JBL), whose shares have declined by around 10% on Thursday, on volume four times above average. The drop comes on the back of financial results for the second fiscal quarter, which included EPS of $0.57, $0.03 below the consensus estimate, on revenue of $4.4 billion, $100 million lower than expected. Guidance for the current quarter was also disappointing and included revenue in the range of $4.1 billion to $4.3 billion and EPS between $0.12 and $0.18, well below consensus estimates of $4.75 billion and $0.51, respectively. CEO Mark Mondello said that “reduced demand in mobility” was behind such weak guidance.

Follow Jabil Circuit Inc (NYSE:JBL)
Trade (NYSE:JBL) Now!

Jabil Circuit, Inc. (NYSE:JBL) lost 14.5% over January, but has recuperated 10.3% since the beginning of February. However, today’s drop takes the year-to-date loss to over 15%. Ron Gutfleish‘s Elm Ridge Capital was one of the investors that avoided the decline as it sold all of its 924,090 shares during the fourth quarter of 2015.

Page 1 of 2
Loading Comments...