Why These Four Stocks Plunged on Tuesday

Martin Marietta Materials, Inc. (NYSE:MLM)‘s stock has inched down by around 6% so far today after the company reported sales of around $1.01 billion and adjusted EPS of $2.05, which were higher in year-on-year terms, but missed the estimates of $1.05 billion in revenue and $2.15 in EPS. The stock is still 32% in the green year-to-date and trading at 19.6-times forward earnings, it seems overvalued (its 12-month forward PEG ratio stands at around 2.17). However, during the second quarter, the number of funds from our database that were bullish on Martin Marietta Materials, Inc. (NYSE:MLM) went up by five to 45, while the aggregate value of their holdings stood at 20% of its outstanding stock, so elite investors do like what they see in the company.

Demandware Inc (NYSE:DWRE)‘s shares have lost 13% in intraday trading on the back of a lower subscription guidance. The provider of cloud-based commerce solutions posted better-than-expected results, with revenue of $57.58 million, up by 49% on the year and adjusted EPS of $0.07, versus $0.03 a year earlier, and a loss of $0.09 expected by analysts. Demandware still increased its full-year total revenue guidance to a range of $233 million-to-$235 million, but its subscription revenue outlook was lowered to between $199 million-and-$201 million from the previous $200 million-to-$205 million range. On the back of the results, several analysts lowered their price targets, but maintained bullish ratings on Demandware Inc (NYSE:DWRE), including Barclays, which set a $70 price target on Demandware along with an ‘Overweight’ rating and Mizuho, which cut its price target to $63 from $75, but has a ‘Buy’ rating on the stock. A total of 15 funds from our database held around 4% of Demandware’s outstanding stock at the end of June.

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