10 Stocks Underperforming the Broader Market

Page 3 of 3

4. Hancock Whitney Corp. (NASDAQ:HWC)

Shares of Hancock Whitney declined by 10.20 percent on Thursday to end at $65 apiece, following news that it would acquire Trustmark Corp. in an all-stock transaction valued at $3.2 billion.

In a statement, Hancock Whitney Corp. (NASDAQ:HWC) said that it entered into a definitive agreement with Trustmark, under which the former will issue 0.7463 shares of common stock for each outstanding share of Trustmark common stock.

The transaction is expected to be approximately 7 percent accretive to Hancock Whitney’s 2028 estimated earnings per share, mildly dilutive to regulatory capital at close, and approximately 7 percent dilutive to tangible book value per share with earn-back in approximately 2.8 years inclusive of merger expenses.

At close, Hancock Whitney’s shareholders will own approximately 65 percent and Trustmark shareholders will own approximately 35 percent of the combined company.

Hancock Whitney Corp. President and CEO John Hairston said that the merger would unite “two strong, high-performing Mississippi-headquartered franchises with proven performance, robust liquidity, and solid capital foundations, creating a stronger platform for profitable growth.”

The combined organization is expected to deliver improved profitability, maintain strong pro-forma capital ratios, and increase the scale and resources needed to invest in high-growth markets, while continuing to support customers and communities throughout its core footprint,” he noted.

3. Nebius Group NV (NASDAQ:NBIS)

Nebius Group saw its share price decline by 16.84 percent on Thursday to end at $128.64 apiece, amid renewed concerns about the artificial intelligence infrastructure buildout, triggered by Jensen Huang’s resignation as chief executive of Nvidia Corp.

It can be learned that Nebius Group NV (NASDAQ:NBIS) shares a deep, multi-year strategic partnership with Nvidia, which earlier this year committed to investing $2 billion in the AI infrastructure company.

With Nvidia widely regarded as a bellwether for the broader AI buildout, and Huang behind its growth into a multi-billion-dollar company over the past decades, his resignation sparked concerns about the potential implications of Nvidia’s future direction and investments in the AI cycle.

For companies like Nebius Group NV, which are heavily reliant on continued demand for AI computing infrastructure and close ties with major technology players, any uncertainty surrounding Nvidia could trigger heightened investor caution.

In other news, Nebius Group NV narrowed its net loss by 69 percent to $37.5 million in the third quarter of the year from $119.6 million in the same period last year, helped by a 571 percent increase in revenues to $980.8 million from only $146.1 million year-on-year.

2. Corteva Inc. (NYSE:CTVA)

Corteva fell by 24.30 percent on Thursday to close at $9.19 apiece, as investor sentiment was dampened by the company’s cautious outlook, leading to a lower annual growth guidance for the rest of the year.

In an earnings call, Corteva Inc. (NYSE:CTVA) CEO Luke Kissam said that the company is not anticipating any meaningful improvement in Brazil’s consumer spending behavior in the near term.

“Brazil was already a difficult market… market conditions deteriorated sharply in the final weeks of the third quarter, and we’ve continued to see negative development since then,” he said.

“Too much of the product we sold into the Brazil channel last year didn’t go to ground,” he noted.

In line with the statement, the firm slashed its full-year adjusted core profit outlook to $1.1 billion from $1.3 billion previously.

In the third quarter of the year, Corteva Inc. widened its net loss by 78.6 percent to $568 million from $318 million in the same period last year, while net sales fell by 6 percent to $2.458 billion from $2.6 billion year-on-year.

Earlier this year, the company completed its separation of its seed and genetics business into a separate publicly traded company, Vylor.

1. Kanzhun Ltd. (NASDAQ:BZ)

Kanzhun Ltd. fell to a new 52-week low on Thursday despite the lack of fresh development, amid broader market pessimism.

In intra-day trading, the stock dropped to a record low of $12.45 before trimming losses to end the day just down 25.30 percent to $12.49 apiece.

The decline appeared to be a combination of profit-taking following last week’s run to the $17 territory, while trading with the lack of a catalyst to boost buying.

In other news, Kanzhun Ltd. (NASDAQ:BZ) recently announced changes to its board of directors with the resignation of Haiyang Yu as a non-executive director of the company effective October 23, due to his other business commitments.

Kanzhun Ltd. is one of the leading online recruitment platforms in China operating BOSS Zhipin. It connects onnects job seekers and enterprise users in an efficient and seamless manner through its highly interactive mobile app, a transformative product that promotes two-way communication, focuses on intelligent recommendations, and creates new scenarios in the online recruiting process.

READ NEXT: 10 Stocks Analysts Are Upgrading Right Now and Jim Cramer’s Top 10 Dividend Stocks for Safe, Consistent Returns

Follow Insider Monkey on Google News.

Page 3 of 3