Several S&P 500 companies significantly underperformed the index's 3.5% gain in September, driven by distinct company-specific challenges. CarMax led declines with a 24.8% drop due to disappointing Q2 results and reduced consumer car demand, while FactSet Research Systems fell 22.3% on missed analyst expectations. Kenvue experienced a 21.9% decrease amid Tylenol autism claims, Deckers Outdoor was down 17.5% due to tariff concerns and economic uncertainty, and Synopsys saw a 16.7% decline from weakened customer demand and past export restrictions.
It's fun to follow stocks that soared recently, and it can be sobering to see which ones have plunged -- especially if you're a shareholder. So here's a look at the worst-performing stocks in the S&P 500 index of 500 of America's biggest companies -- in September. CarMax: Down 24.8% CarMax (KMX -0.27%) sells, finances, and services new and used cars at more than 250 locations. Much of its loss happened after it posted a very disappointing second-quarter report, featuring revenue down year over year and profits really down -- by 25%. This reflects lower car-buying enthusiasm from consumers. FactSet Research Systems: Down 22.3% FactSet Research Systems (FDS -0.90%) offers financial data and analytics for professional investors. It also posted results below analyst expectations. Kenvue: Down 21.9% Kenvue (KVUE -0.68%) was spun off from Johnson & Johnson in 2023 to focus on consumer products. Its brands include Listerine, Zyrtec, Motrin, Band-Aid, and... Tylenol. As you might have guessed, much of its recent downfall is tied to President Trump and others asserting that Tylenol is linked to autism. Deckers Outdoor: Down 17.5% Deckers Outdoor (DECK 2.82%) is an outdoor apparel company with brands such as Uggs, Teva, and Hoka. It has fallen in value in part due to concerns about tariff effects -- as well as general worries about economic uncertainty reining in consumers' eagerness to buy. It also disappointed investors with its last earnings report. Synopsys: Down 16.7% Synopsys (SNPS 1.93%) specializes in software used for designing and testing semiconductor chips. Its shares have fallen in part due to weakened demand from a major customer and export restrictions from the Trump administration (now removed). While these stocks retreated, the S&P 500 index gained 3.5% in September. Remember, too, that when stocks plunge, you should steer clear if the company is facing lasting, intractable problems. But if the market seems to have overreacted and the company's future is promising, a much lower stock price can be a great buying opportunity. The S&P 500's 3.5% gain in September masked significant underperformance across several constituents, indicating distinct company-specific headwinds rather than broad market weakness. This divergence is reflected in the "strongly negative" overall sentiment signal for the highlighted stocks. CarMax (KMX) led declines with a 24.8% drop, driven by a 25% profit reduction and reduced consumer car-buying enthusiasm, underscoring challenges in consumer demand. FactSet Research Systems (FDS) also fell 22.3% after missing analyst expectations, pointing to corporate earnings and analyst estimates as key drivers. Kenvue (KVUE) dropped 21.9% amid Tylenol-autism claims, introducing significant legal and reputational risks to its company fundamentals. Deckers Outdoor (DECK) declined 17.5% due to tariff concerns and broader economic uncertainty, while Synopsys (SNPS) fell 16.7% from weakened major customer demand.
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strongly negative
Sentiment Score
-0.65
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