Stocks performed well on Monday, sending several major benchmarks to record levels. Optimism about the future of the economy prevailed over nervousness about the strong advance in the markets in recent years, and the resurgence of tech stocks helped reassure investors that an imminent end to the 8-year-old bull market rally wasn’t necessarily yet upon them. Nevertheless, some stocks didn’t manage to participate in the move higher, and several posted considerable losses. TripAdvisor (NASDAQ:TRIP), Ascena Retail Group (NASDAQ:ASNA), and EQT (NYSE:EQT) were among the worst performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so poorly.
TripAdvisor gets a bad review
Shares of TripAdvisor fell 5% after the travel website received a downgrade from a financial analysis company. Analysts at Credit Suisse cut their rating on the stock from neutral to underperform, and they reduced their price target on shares by 15% to $34 per share. The analysts pointed to a number of potentially negative factors for TripAdvisor, including higher spending on television advertising that will hit short-term profits, tough comparisons from year-ago levels, and a high relative valuation compared to peers in the online travel space. The challenge that the company faces is fully making a transition away from its previous focus on travel reviews and instead becoming a go-to destination to book travel. So far, those efforts haven’t panned out quite as well as investors had hoped, although TripAdvisor has made considerable progress and could continue to do so in the years to come.
Ascena keeps giving up ground
Ascena Retail Group stock dropped 5.5%, continuing a trend that has led to the retailer’s shares giving up almost all of their gains from earlier in the month. The stock has been under pressure all year, as the owner of store lines like Ann Taylor and Lane Bryant faced the same general problems that the…