Written by Brenda Nakalema

Under Armour, Target, and 3 More of Stock Market’s Worst Performers in May

Coming into trading on Tuesday, the S&P 500 posted a gain of roughly 0.6% for May. A rally last week …

Coming into trading on Tuesday, the S&P 500 posted a gain of roughly 0.6% for May. A rally last week pulled the index into a positive zone in what was obviously a volatile month.

Here are the worst performers in the S&P 500 in May

Under Armour

Under Armour (ticker: UAA) released quarterly earnings earlier in the month that didn’t meet Wall Street’s expectations. The company explained that supply-chain challenges and the pandemic uncertainty were at the core of the lacklustre performance. Even with this news, what discouraged investors was the fiscal-year outlook, which was lower than expected.

Under Armour’s guidance for adjusted earnings for the fiscal year ending next March of 63 cents, a share fell below analysts’ expectations of 78 cents. According to Dow Jones Market Data, the stock has dropped 31.1% this month; according to Dow Jones Market Data- it lost nearly half its value this year.

Target

Target (ticker: TGT) experienced its worst day since May 1987. The stock dropped drastically on a quarterly earnings report that fell below analysts’ forecasts and highlighted unexpectedly high costs. With the increase in inflation, shoppers have been holding back. Target declined 29.2% in May and is down 30.1% year-to-date.

DexCom

DexCom, the medical device manufacturing company, witnessed its shares drop 27.1% in May and roughly 44.5% this year. In early trading on Tuesday, shares were rising 5.3% even after the company released a statement saying “it wasn’t in active discussions at this time.” Reports indicate that the company was in talks to acquire automated insulin technology developer Insulet (ticker: PODD).

Expedia

Expedia (ticker: EXPE) stock dropped at the beginning of the month even though travel demand has been restored and the company’s loss reduced in its first quarter. Revenue in the period also jumped by 80% from the previous year and matched analysts’ forecasts of $2.25 billion. It seems like the stock’s strong recovery was already priced in the stock. Shares have dropped 26% in May and are down nearly 28.4% this year.

Royal Caribbean

Royal Caribbean (ticker: RCL) stock fell drastically this month even though the cruise line operator said it continues to move toward profitability. The company reported that operating cash flow was “slightly negative in March” but was “turning positive in April.” The stock fell 25.3% in May and has declined more than 24.5% this year.