Ten companies mirrored a generally pessimistic market environment on Tuesday, recording hefty losses, as investors parked funds while waiting for more concrete updates on key economic developments.
Among Wall Street’s main indices, only the Dow Jones finished in the green, jumping by 0.91 percent. In contrast, the S&P 500 and the tech-heavy Nasdaq both dropped by 0.11 percent and 0.82 percent, respectively.
In this list, we highlight the names of the 10 worst-performing stocks and detail the reasons behind their drop.
To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and over 5 million shares in trading volume.
10. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Kratos Defense dropped its share prices by 7.28 percent on Tuesday to close at $43.07 apiece as investors resorted to profit-taking after hitting a new all-time high in the previous trading.
On Monday, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) soared to an all-time high of $47.09 after successfully raising $575 million from a share sale program.
According to the company, it was able to sell more than 14.9 million common shares at a price of $38.5 apiece. The total amount included the overallotment option worth $75 million.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) said that net proceeds from the offer will be used to fund investments critical to national security, targeted acquisitions, and other general corporate purposes, including the repayment of existing debt and fees related to the offering.
In recent news, the company earned a “buy” recommendation and a higher price target of $52 from Truist Securities. The new price target marked a 37-percent increase from its previous price target of $38.
According to Truist, the new projects have the potential to raise the listed firm’s revenues by $150 million in the coming years, adding that it was bullish on the company for this year and the next amid higher growth expectations from the new contracts.
9. Bloom Energy Corporation (NYSE:BE)
Bloom Energy declined by 7.48 percent on Tuesday to close at $22.13 apiece as investor sentiment was dampened by the passage of the One Big Beautiful Bill Act in the Senate that included provisions to end tax credits for clean energy.
In the passed Senate version, 45V clean hydrogen tax credits will expire on January 1, 2028, as opposed to the original 2032 in the Inflation Reduction Act.
Investors took the news in a negative light and repositioned portfolios ahead of the bill’s July 4 deadline.
In the first quarter of the year, Bloom Energy Corporation (NYSE:BE) narrowed its net loss by 58.6 percent to $23.8 million from $57.5 million in the same period last year.
Revenues increased by 38.7 percent to $326 million from $235 million year-on-year.
For the full year, Bloom Energy Corporation (NYSE:BE) expects revenues to settle between $1.65 billion and $1.85 billion.
Hedge Fund Resource Center