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.

A Look at 5 Tanking Stocks and Developments Behind Their Decline

The stock market continued its decline into the first hours of trading on Friday and with the earnings season still in progress, several companies have reported their latest financial results, including Cisco Systems, Inc. (NASDAQ:CSCO), J C Penney Company Inc (NYSE:JCP), Tyco International PLC (NYSE:TYC), Nordstrom, Inc. (NYSE:JWN), and El Pollo LoCo Holdings Inc (NASDAQ:LOCO). The results disappointed investors, with all stocks tanking in extended trading and opening in the red. Let’s take a closer look at their progress and see if the smart money sentiment toward these stocks suggests that the market might have overreacted to the news.

Stock Trading Insider NYSE Market

The smart money sentiment is a useful metric that can help retail investors see the big picture, rather than focus on the short-term performance of a company. Hedge funds and other large money managers often invest for the long-term horizon and conduct a detailed analysis of a stock, therefore we can imitate their activity and obtain returns above the broader market. At Insider Monkey we focus on the 15 most popular small-cap picks among some of the best-performing investors and this approach has helped us obtain returns of around 102%, beating the S&P 500 ETF (SPY) by around 53 percentage points (see more details here).

Let’s start with Cisco Systems, Inc. (NASDAQ:CSCO), which has posted its financial results for the first quarter of fiscal 2016, including revenue of $12.7 billion, up by 3.6% on the year and GAAP EPS of $0.48, versus $0.37 reported a year earlier. In addition, the company’s non-GAAP EPS of $0.59, went up by an annual 9.3%, and managed to beat the Street’s estimates of $0.56. Additionally, the revenue came in marginally higher the $12.65 billion projected by analysts. However, for the current quarter, Cisco Systems, Inc. (NASDAQ:CSCO) anticipates a revenue growth between flat and 2% on the year and non-GAAP EPS in the range of $0.53 to $0.55, which falls below the current analyst estimates. On the back of the guidance, Cisco’s stock  At the end of June, 72 funds from our database held around 3% of Cisco Systems, Inc. (NASDAQ:CSCO)’s outstanding stock. In the current round of 13F filings, Donald Yacktman’s Yacktman Asset Management reported holding 36.11 million shares of Cisco, down by 14% over the quarter.

Follow Cisco Systems Inc. (NASDAQ:CSCO)
Trade (NASDAQ:CSCO) Now!

J C Penney Company Inc (NYSE:JCP) delivered an almost 5% annual growth in net sales during the third quarter of fiscal 2015, reporting sales worth almost $2.90 billion, slightly above the estimates of $2.88 billion. The company also managed to post better-than-expected adjusted net loss of $0.47 per share, compared to a loss of $0.77 per share reported a year earlier and above the consensus estimate of a loss of $0.55. J C Penney Company Inc (NYSE:JCP) also reported a 6.4% same store sales growth during the quarter, while for the full fiscal 2015, it projects same store sales growth between 4% and 5%. The stock closed slightly higher yesterday as the company made some positive comments about its financial results, but opened over 8% in the red on Friday. In its latest 13F filing, billionaire quant Jim Simons’ reported ownership of 14.67 million shares of J C Penney Company Inc (NYSE:JCP) as of the end of September, up by 3.63 million shares over the quarter.

Follow J C Penney Co Inc (NYSE:JCP)
Trade (NYSE:JCP) Now!

Read on to see more details about the earnings of the other three companies.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.