S&P 500 Rises 21%, But Dollar Tree, APA, and Moderna Struggle

The report highlights significant stock performance variations within the S&P 500 in September 2024. While the index has surged overall, companies like Dollar Tree, APA, and Moderna faced steep declines, possibly influencing investor sentiment and stock prices going forward.

Date: 02-10-2024

AI Rating: 4

The report indicates a significant rise in the S&P 500 by nearly 21% in 2024, with some stocks experiencing notable declines, particularly in September. Key stocks affected include Dollar Tree, APA, and Moderna.

Dollar Tree Analysis

Dollar Tree's shares fell 16.8% in September and are now down 50% for the year. The company's adjusted earnings per share (EPS) fell by 26.4% to $0.67, significantly missing Wall Street's expectations of $1.04. The company also reduced its full-year revenue guidance, projecting net sales between $30.6 billion and $30.9 billion, which is lower than previous estimates. These results suggest considerable pressure on Dollar Tree's profitability, affecting investor confidence negatively.

APA Analysis

APA shares dropped 14.2% in September, reflecting a broader downturn in the energy sector amidst falling oil prices. Although the company announced a significant asset sale for $950 million, this did not halt its stock's decline. Despite the positive news of the sale, the ongoing volatility in oil and gas pricing may continue to affect its stock negatively.

Moderna Analysis

Moderna's stock fell 13.7% last month, compounded by the discontinuation of five development programs and a lowered revenue guidance for 2025, now estimated between $2.5 billion and $3 billion, down from $3 billion to $3.5 billion. The expectation to break even in 2028 instead of 2026 raises concerns over future profitability and investor confidence.

Overall, the substantial declines in these stocks, especially against the backdrop of a rising S&P 500, indicate potential pressures on stock prices moving forward. While there may be hopes for turnaround plays within these companies, the current data suggests a cautious approach for investors.

Stocks: DLTR APA MRNA