Ten stocks fell sharply on Monday, as investors parked funds while in a wait-and-see mode amid ongoing geopolitical tensions in the Middle East.
Meanwhile, Wall Street’s main indices finished mixed, with the Dow Jones the sole loser, dropping 0.15 percent. The S&P 500 inched up by 0.04 percent, while the Nasdaq increased by 0.36 percent.
In this article, we focus on the 10 worst-performing stocks on Monday and break down the reasons behind their decline.
To come up with the list, we focused on the companies with a $2 billion market capitalization and 5 million shares in trading volume.
Source: Pexels
10. Carnival Corporation & PLC (NYSE:CCL)
Carnival Corporation saw its share prices drop by 7.64 percent on Monday to finish at $29.14 apiece amid the ongoing tensions in the Middle East that propelled oil prices higher and dragged down travel demand.
As of writing, Brent crude and WTI soared by 7.67 percent and 6.68 percent, respectively, amid oil supply risks caused by the war among the US, Israel, and Iran. Thousands of airlines have also been cancelled and rebooked.
Meanwhile, US President Donald Trump said that the strikes may continue over the next four weeks, further dampening appetite for the global tourism and travel sector, including cruise operators, which receive a significant number of passengers from air flyers.
Meanwhile, investors will be closely watching out for Carnival Corporation & PLC’s (NYSE:CCL) business outlook for this year when it announces its earnings performance for the first quarter of fiscal year 2026 late this month.
Based on its historical reporting dates, Carnival Corporation & PLC (NYSE:CCL) may release its results on March 20, 2026.
In other news, Carnival Corporation & PLC (NYSE:CCL) officially published its intention to restructure and unify its two companies listed in the US and the UK.
Under the plan, Carnival PLC would operate as a UK-based entity under Carnival Corporation, while the latter would be renamed to Carnival Corporation Ltd.
It would also create a single stock for all shareholders, from being traded under ticker symbols CCL and CUK at present.
The cruise operator said it expects to secure shareholder approval for the plan on April 17, 2026.
9. Rocket Companies Inc. (NYSE:RKT)
Rocket Companies dropped its share prices by 7.70 percent on Monday to finish at $16.79 apiece, as investors priced in a disappointing earnings performance in both the fourth quarter and full-year periods of 2025.
In an updated report last week, Rocket Companies Inc. (NYSE:RKT) said that it swung to a net loss of $234 million last year from a $636 million net income in 2024, despite a 31 percent jump in revenues to $6.695 billion from $5.101 billion.
In the fourth quarter alone, net income fell by 89 percent to $68 million from $649 million in the same period a year earlier, while total revenues increased by 52 percent to $2.692 billion from $1.769 billion.
For the first quarter of the year, Rocket Companies Inc. (NYSE:RKT) is targeting to generate $2.6 billion to $2.8 billion in revenues, or an implied growth of 151 percent to 170 percent from $1.037 billion in the same quarter last year.
Starting this first quarter, Rocket Companies Inc. (NYSE:RKT) would also reclassify as a direct expense its warehouse interest on loans held for sale from a contra-revenue account.
“This change will increase both our reported revenue and expenses and does not impact our net income or cash flow. The guidance range includes $150 million from this reclassification,” it said.
8. TE Connectivity PLC (NYSE:TEL)
TE Connectivity extended its losing streak to a third consecutive day on Monday, shedding 7.89 percent to finish at $211.98 apiece, as investors parked funds in a wait-and-see mode amid ongoing geopolitical tensions and the lack of fresh leads to boost investing appetite.
While not directly affected by the ongoing tensions in the Middle East, TE Connectivity PLC (NYSE:TEL) remains exposed to the global supply disruptions and the potential surge in shipping costs, amid the marked jump in oil prices.
As of writing, oil benchmarks Brent and WTI are already up by 7.67 percent and 6.68 percent, respectively.
In other news, TE Connectivity PLC (NYSE:TEL) announced last month its earnings performance for the first quarter of fiscal year 2026, with net income jumping by 42 percent to $750 million from only $528 million in the same period a year earlier.
Net sales increased by 21.7 percent to $4.669 billion from $3.836 billion year-on-year, driven by growth in both the industrial and transportation segments.
For the second quarter, TE Connectivity PLC (NYSE:TEL) is targeting to record $4.7 billion in sales, or an implied growth of 13 percent on a reported basis, and a 6 percent growth organically.
Adjusted earnings per share are pegged at $2.65, up 20 percent year-on-year.
7. Celsius Holdings Inc. (NASDAQ:CELH)
Celsius Holdings fell by 8.13 percent on Monday to finish at $49.25 apiece, as investors resorted to profit-taking following last week’s surge while mirroring a mixed performance on Wall Street.
During the session, the three major indices finished mixed, with the Dow Jones dropping 0.15 percent, while the S&P 500 eked out a mere 0.04 percent gain. The Nasdaq, on the other hand, increased by 0.36 percent.
Investors also took advantage of last week’s surge to take profits after two investment companies “buy” recommendations and raised their price targets for Celsius Holdings Inc. (NASDAQ:CELH) following a strong earnings performance that beat analyst expectations.
For its part, UBS raised its price target by 3 percent to $72 from $70, while Bank of America upgraded its fair value assessment by 44 percent to $65 from $45.
Last week, Celsius Holdings Inc. (NASDAQ:CELH) said that its revenues jumped by 83 percent to $2.5 billion from $1.3 billion in 2024, beating analyst expectations of $2.4 billion.
However, net profit attributable to shareholders fell by 41 percent to $63.8 million from $107.5 million year-on-year.
In the fourth quarter alone, revenues soared by 117 percent to $721.6 million from $332.2 million, while it swung to a net profit attributable to shareholders of $9.1 million from a $25.8 million attributable net loss in the same period a year earlier.
6. American Eagle Outfitters Inc. (NYSE:AEO)
American Eagle dropped its share prices by 8.42 percent on Monday to close at $22.50 apiece, as investors unloaded portfolios ahead of the release of its earnings performance this week.
According to the company, it would conduct an earnings call to discuss its financial and operating highlights for the fourth quarter and full-year 2025 period after market close on Wednesday, March 4.
For the period, American Eagle Outfitters Inc. (NYSE:AEO) is expecting to report an 8 to 9 percent growth in comparable sales versus the fourth quarter of 2024. It also raised its operating income guidance to a range of $167 million to $170 million, versus $155 million to $160 million previously. It also expects to incur a net tariff impact of approximately $50 million.
For the full-year period, comparable sales are expected to grow by low single digits, while operating income is targeted to hit $303 million to $308 million. Net tariff impact is expected to be at $70 million.
Last month, American Eagle Outfitters Inc. (NYSE:AEO) already hinted at a strong comparable sales performance for the fourth quarter of 2025, with the last three months up to January 3, 2026, already up by high single digits.
It said that sales trends across brands and channels all turned positive, with the Aerie brand alone jumping by low twenties, while the American Eagle brand was up by low single digits.
“Momentum continued in the fourth quarter with record December sales fueled by the power of our brands, with particularly strong growth at Aerie and Offline and sequential growth at American Eagle. Our customers embraced new product collections and responded to our latest marketing initiatives, with strength continuing in the post-holiday period. We look forward to building on this positive trajectory with new customer-inspired collections, as we remain focused on creating value for our shareholders,“ American Eagle Outfitters Inc. (NYSE:AEO) CEO Jay Schottenstein said.
5. The Estée Lauder Companies Inc. (NYSE:EL)
Estee Lauder slashed its share prices by 8.48 percent on Monday to finish at $100.19 apiece, as investors unloaded portfolios following the record date of its next dividend payment, while mirroring a mostly pessimistic broader market.
On March 16, The Estée Lauder Companies Inc. (NYSE:EL) is scheduled to pay $0.35 dividends per share held by its shareholders of record on February 27. Investors immediately sold portfolios after the ex-date, while in a wait-and-see mode amid ongoing geopolitical tensions.
The dividends followed the company’s strong earnings performance for the second quarter of fiscal year 2026, with The Estée Lauder Companies Inc. (NYSE:EL) swinging to a net income of $162 million from a $590 million net loss in the same period a year earlier.
Net sales also jumped by 6 percent to $4.2 billion from $4 billion year-on-year.
In the six-month period, net income stood at $209 million, reversing a $746 million net loss, while net sales inched up by 5 percent to $7.7 billion from $7.36 billion year-on-year.
For the full fiscal 2026, organic net sales are targeted to grow by 1 to 3 percent, with the mainland China operations expected to increase by mid-single digit growth, while the Americas would remain flat.
The Estée Lauder Companies Inc. (NYSE:EL) also expects to incur $100 million of unfavorable impact from tariffs, most of which would come in the second half of the fiscal year.
4. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Norwegian Cruise fell by 10.53 percent on Monday to close at $22.18 apiece, as investors took path from a dismal earnings performance last year, and a weak outlook for 2026.
In an updated report, the cruise giant said that net income last year declined by 53 percent to $423 million from $910 million in 2024, despite total revenues inching up by 3.4 percent to $9.8 billion from $9.48 billion.
In the fourth quarter alone, net income stood at $14.2 million, marking a 94 percent drop from $254 million year-on-year. Total revenues jumped by 4.8 percent to $2.2 billion from $2.1 billion.
Commenting on the company’s performance, newly installed president and CEO, John Chidsey, said that the strategy was “sound, but execution and cross-functional alignment have fallen short.”
“Our priority is to act urgently to address these gaps by improving coordination, reinforcing accountability, and strengthening financial discipline across the organization. The good news is that we have strong assets and have recently enhanced our leadership team with the right combination of new and tenured talent. Now, with a clear focus and necessary rigor, I am confident in our ability to create sustainable long-term value,” he noted.
For this year, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is looking at an adjusted EBITDA of $2.95 billion, or an implied 8 percent growth from $2.73 billion in 2025.
For the first quarter alone, adjusted EBITDA is targeted at $515 million, while adjusted operational EBITDA margin is pegged at 29 percent.
3. ADT Inc. (NYSE:ADT)
ADT saw its share prices fall by 11.22 percent on Monday to close at $7.12 apiece, as investors took path from a disappointing earnings performance and outlook for this year.
During the period, ADT Inc. (NYSE:ADT) incurred a net income of $145 million, marking a 23 percent decline from the $190 million registered in the same period in 2024. Total revenues also inched up by a mere 1 percent to $1.276 billion from $1.26 billion year-on-year.
However, net income for the full-year period grew by 19 percent to $596 million from $501 million, while total revenues rose by 5 percent to $5.1 billion from $4.9 billion.
For this year, ADT Inc. (NYSE:ADT) said that it is expecting revenues and adjusted earnings per share to finish flat, while adjusted free cash flow—including interest rate swaps—is projected to grow by 20 percent year-on-year.
“This outlook reflects the company’s recent and continued prioritization of cash flow, share repurchases, and disciplined subscriber acquisition spending. It also incorporates planned 2026 investments in growth initiatives expected to benefit future periods, as well as headwinds from tariffs,” it said.
To support shareholder value, ADT Inc. (NYSE:ADT) authorized a new share repurchase program amounting to $1.5 billion, and also announced the distribution of dividends amounting to $0.55 to all common stockholders on record as of March 12, 2026. The dividends will be payable on April 2.
2. AeroVironment Inc. (NASDAQ:AVAV)
AeroVironment slashed its share prices by 17.42 percent on Monday to close at $208.26 apiece, as investors unloaded portfolios following news that the Space Force would open a $1.4 billion rebidding for mobile ground station supplies—a contract that was won by a subsidiary it recently acquired.
A report by Space News said that the Space Force would conduct a bidding program to attract more contractors for the development of mobile ground stations used to track and command spacecraft in a bid to diversify suppliers and reduce dependence on just one vendor.
The contract was initially awarded to BlueHalo, a subsidiary of AeroVironment Inc. (NASDAQ:AVAV).
Following the news, investment firm Raymond James downgraded AeroVironment Inc.’s (NASDAQ:AVAV) stock to “underperform” from “strong buy” recently, saying that the rebidding could dent its revenue growth outlook.
However, another investment firm, BTIG, differed from the view, with the company reaffirming its “buy” recommendation and $415 price target for the stock.
In its report, BTIG said that contract makes up for only 6 percent of the listed firm’s annual sales, and that the intra-day drop appears overdone for such a contract size.
Meanwhile, investors will watch out for updates about the contract when it conducts an earnings call for its third quarter of fiscal year 2026 performance after market close next Tuesday, March 10, 2026.
1. The AES Corporation (NYSE:AES)
The AES Corp. fell by 17.77 percent on Monday to close at $14.21 apiece, as investors unloaded portfolios following news that it would be acquired by a consortium led by Global Infrastructure Partners (GIP) and the EQT Infrastructure VI fund at a 13 percent discount from its previous closing price.
In a statement, The AES Corporation (NYSE:AES) said that it entered into a definitive agreement with GIP and EQT for the sale of its shares at a price of $15 apiece, markedly lower than the $17.28 closing price last Friday, or prior to the official announcement.
“Following a rigorous review of strategic options, the AES Board determined that this transaction with the Consortium maximizes value for stockholders and provides compelling cash value. We ran a robust process that included several parties and evaluated the transaction with the company’s standalone prospects in mind. AES has a significant need for capital to support growth beyond 2027, particularly given the significant new investments in both US generation and utilities businesses,” The AES Corporation (NYSE:AES) Chairman Jay Morse said.
“In the absence of a transaction with the consortium, the company would likely require a plan that includes reduction or elimination of the dividend and/or substantial new equity issuances. After extensive work and deliberation, we concluded that this transaction is in the best interest of AES stockholders,” he noted.
The acquisition is not expected to impact customer rates in its regulated utilities, including those in Indiana and Ohio.
The transaction is expected to close in late 2026 or early 2027, subject to regulatory approvals.
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