Ten stocks capped off the trading week on a lackluster note amid investor caution ahead of the release of their second quarter earnings performance, coupled with negative developments that dampened investing appetite.
In contrast, Wall Street’s two main indices finished in the green, with the tech-heavy Nasdaq and the S&P 500 up 1.5 percent and 0.60 percent, respectively. In contrast, the Dow Jones dipped by 0.07 percent.
In this article, let us explore this week’s 10 biggest losers and detail the reasons behind their gains.
To compile the list, we focused exclusively on stocks with at least $2 billion in market capitalization and over 5 million shares in trading volume.
10. New Gold Inc. (NYSEAmerican:NGD)
New Gold dropped its share prices by 8.51 percent week-on-week, officially entering the oversold territory amid the lack of fresh developments to boost buying appetite.
Friday’s session marked the company’s seventh day of decline since losing ground from the $5 level it last touched on July 7.
According to a recent report from Zacks Research, New Gold Inc. (NYSEAmerican:NGD) currently carries a relative strength index reading of 28.3, below the 30 threshold, indicating that it is now in oversold conditions, considering that the company is predicted to report better-than-expected earnings in the next quarter.
Based on its historical earnings reporting dates, New Gold Inc. (NYSEAmerican:NGD) is set to announce the results of its second quarter performance between this week or before the end of July.
“So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock to benefit from the inevitable rebound,” Zacks said.
9. Stellantis N.V. (NYSE:STLA)
Stellantis saw its shares lose 8.6 percent of their value week-on-week as investors unloaded positions ahead of its earnings release and announcements that it was terminating its hydrogen fuel cell technology development plans.
In a statement, Stellantis N.V. (NYSE:STLA) said that this was due to the lack of developments in the sector, particularly hydrogen refueling infrastructure, high capital requirements, and the need for stronger consumer purchasing incentives.
Stellantis N.V. (NYSE:STLA) added that it does not anticipate adopting hydrogen-powered vehicles before the end of the decade and that it will no longer launch the hydrogen-powered Pro One vehicles this year.
“The hydrogen market remains a niche segment, with no prospects of mid-term economic sustainability. We must make clear and responsible choices to ensure our competitiveness and meet the expectations of our customers with our electric and hybrid passenger and light commercial vehicles offering,” it said.
Stellantis N.V. (NYSE:STLA) is expected to announce the results of its financial and operating performance for the second quarter of the year on July 29.
8. PagSeguro Digital Ltd. (NYSE:PAGS)
Shares of PagSeguro Digital declined by 8.86 percent week-on-week to finish at $7.92 last Friday from $8.69 on July 11, as investors unloaded positions ahead of an expected earnings drop in its second quarter report.
In a market note earlier last week, Zacks Research said that PagSeguro Digital Ltd. (NYSE:PAGS) is projected to report an EPS of $0.3 or a 6.25 percent decline from the same period last year, but revenues are expected to go higher at $913.21 million or 4.44 percent higher year-on-year.
PagSeguro Digital Ltd. (NYSE:PAGS) currently holds a “hold” rating from Zacks Research. In the context of valuation, the company is currently trading at a Forward P/E ratio of 7.06, well below the industry average Forward P/E of 16.08, which means that the company is trading at a discount to its peers.
Last Wednesday, PagSeguro Digital Ltd. (NYSE:PAGS) also earned a conservative rating from JPMorgan, assigning a “neutral” stance on the company but with a higher price target of $13. The said figure marks a 49.6 percent upside from its latest closing price.
7. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)
Patterson-UTI saw its share prices decline by 9.3 percent week-on-week, closing at $5.94 on Friday versus the $6.55 on July 11, as investors sold off positions ahead of its second quarter earnings and bearish outlooks from analysts.
Earlier last week, Stifel Nicolaus reduced its price target for Patterson-UTI Energy, Inc. (NASDAQ:PTEN) to $12 from $13 previously, but maintained a “buy” recommendation for its stock.
Meanwhile, Zacks Research posted a more bearish stance, giving it a “sell” recommendation amid expectations of lower revenues due to poor drilling services and completion, among others.
According to Zacks Research, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is expected to post $1.21 billion in revenues for the second quarter of the year, or 10.37-percent lower than the $1.35 billion in the same period a year earlier, due to poor drilling services and completion, among others.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is expected to release the results of its second quarter earnings performance next Thursday, July 24.
6. First Majestic Silver Corp. (NYSE:AG)
First Majestic Silver dropped its share prices by 10.68 percent last week, finishing Friday at $8.28 versus $9.27 on July 11, as the company lacked further leads to support its recent rally to a record high.
Last Monday, First Majestic Silver Corp. (NYSE:AG) soared to a new 52-week high of $9.48 after announcing on July 8 its total production figures for the second quarter of the year. However, the company was unable to support the momentum as investors already priced in the news, evident from the five straight days of declines last week.
According to First Majestic Silver Corp. (NYSE:AG), it was able to mine 3.7 million ounces of silver during the period, representing a 76-percent increase from the 2.1 million silver ounces in the same period last year. The bulk of the figure, representing 1.5 million ounces, was produced at the Los Gatos site alone.
Meanwhile, silver equivalent produced stood at 7.9 million ounces, marking a 48-percent increase from 5.3 million year-on-year.
Impact of the second quarter production to its second quarter earnings performance is expected to be announced during market hours on August 14.
5. Schlumberger Limited (NYSE:SLB)
Schlumberger saw its share prices decrease by 10.69 percent week-on-week from $37.31 on July 11 to $33.32 last Friday, as investor sentiment was dampened by a disappointing earnings performance in the second quarter of the year.
In its earnings release, Schlumberger Limited (NYSE:SLB) said attributable net income, excluding charges and credits, fell by 17 percent to $1.016 billion from $1.224 billion in the same period last year.
Revenues dropped by 6 percent to $8.546 billion from $9.139 billion year-on-year.
Schlumberger Limited (NYSE:SLB) regarded its performance as “solid,” saying that it leveraged its diversified portfolio and broad market exposure to deliver steady revenues despite the market navigating several dynamics and macroeconomic uncertainties.
“Despite this, commodity prices have remained range-bound. Meanwhile, customers have selectively adjusted activity, prioritizing key projects and planning cautiously, particularly in offshore deepwater markets,” it said.
4. Centene Corporation (NYSE:CNC)
Centene fell by 11.1 percent week-on-week, from $31.44 on July 11 to $27.95 last Friday—a new all-time low, as investors turned cautious ahead of its second quarter earnings results, further dampened by one of its peers’ dismal earnings performance.
During the week, its fellow insurer Elevance Health, reported a 24.2-percent drop in net income during the second quarter of the year and updated its outlook to reflect elevated medical cost trends under the Affordable Care Act and slower rate alignment in Medicaid, both of which are also being offered by Centene Corporation (NYSE:CNC).
Last month, Centene Corporation (NYSE:CNC) withdrew its 2025 earnings forecast due to an expected slump in its revenues from commercial plans under the ACA or Obamacare. The withdrawal triggered a review from credit ratings issuer S&P Global Ratings, saying that it is likely to set the company’s status to “junk.”
“With the removal of earnings guidance, we have less immediate clarity and confidence on the company’s capital adequacy trajectory, as well as the overall strength of its business and execution capabilities,” S&P said.
3. The Gap, Inc. (NYSE:GAP)
The Gap Inc. declined by 11.56 percent week-on-week, finishing at $20.19 last Friday versus $22.83 on July 11, as investors sold off positions following the ex-dividend date for its second quarter dividend payout.
In May this year, The Gap, Inc. (NYSE:GAP) said its board of directors approved the distribution of dividends worth $0.165 per share to shareholders as of the July 9 record date. Payments will be made on July 30, 2025.
Based on its historical earnings reporting dates, The Gap, Inc. (NYSE:GAP) is set to announce its second-quarter earnings in the fourth week of August 2025.
In the first quarter ending May 2025, The Gap, Inc. (NYSE:GAP) grew its net income by 22 percent to $193 million from $158 million in the same period last year.
Net sales dipped by 2 percent to $3.46 billion from $3.39 billion year-on-year.
2. StoneCo Ltd. (NASDAQ:STNE)
StoneCo fell by 11.63 percent week-on-week to end Friday’s trading at $13.67 versus the $15.47 finish on July 11, as investors repositioned portfolios ahead of the release of its second quarter earnings performance.
In a statement earlier this month, StoneCo Ltd. (NASDAQ:STNE) said it will announce the results of its earnings on August 7 after market close, to be followed by a conference call at 5 PM Eastern Time.
In the first quarter of the year, StoneCo Ltd. (NASDAQ:STNE) saw net income increase by 38.3 percent to R$516.7 million from R$373.6 million in the same period last year.
Total revenues rose by 19 percent to R$3.669 billion from R$3.084 billion year-on-year.
For the second quarter, Zacks Research expects StoneCo Ltd. (NASDAQ:STNE) to post earnings of $0.34 per share, or a 13.33 percent growth year-on-year.
Meanwhile, full-year EPS was pegged at $1.44 with revenues of $2.73 billion, representing growth of 6.67 percent and 10.94 percent, respectively.
1. Elevance Health, Inc. (NYSE:ELV)
Elevance Health fell by 18.66 percent week-on-week to close at $277.09 on Friday versus $340.67 a week earlier following dismal earnings performance in the second quarter of the year.
In its earnings release, Elevance Health, Inc. (NYSE:ELV) said net income during the period dropped by 24.2 percent to $1.744 billion from $2.301 billion in the same period last year, pushing its six-month net earnings lower by 13.7 percent to $3.928 billion from $4.55 billion year-on-year.
Revenues for the second quarter, however, increased by 13.4 percent to $49.776 billion from $43.886 billion year-on-year, while revenues for the first half of the year grew by 14.1 percent to $98.667 billion from $86.463 billion year-on-year.
Looking ahead, Elevance Health, Inc. (NYSE:ELV) also lowered its guidance amid elevated medical cost trends in Obamacare and slower rate alignment in Medicaid.
Given the industry-wide impact of elevated cost trends, the company said it now expects 2025 GAAP net income per diluted share to be approximately $24.10 and adjusted net income per diluted share to be approximately $30.
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