As the stock market continued to fall Thursday, largely due to the increasing anxiety and uncertainty involving the presidential election on Tuesday, some stocks dropped after reporting earnings, while generic-drug stocks slid on news of a Department of Justice probe.
Earnings reports as a whole have been solid this quarter, but as Election Day nears, company executives seem to be growing more conservative about forecasts, and Wall Street doesn't like what it hears.
Many market participants have been calling for a pullback over the past few months, and it is starting to look like we are in the midst of one. No one knows how bad it could get, but investors don't want to be caught owning the wrong stocks if it gets worse.
So let's take a look at three of Thursday's big losers.
1. First Solar (FSLR)
One of the biggest declines in the S&P 500 on Thursday was registered by First Solar, which skidded 15% and is down another 4%-plus on Friday.
The decline came after First Solar reported third-quarter results that beat analysts' earnings estimates but missed on revenue. Earnings came in at $1.22 a share, surpassing the forecast of 69 cents a share, while revenue was $688 million, well below the $967 million expected.
First Solar reported earnings of $3.41 a share on revenue of $1.3 billion a year earlier.
Low demand from China due to an oversupply in the market hurt the company during the quarter, and many analysts expect the challenges to continue. Customers are holding off on signing new contracts in the hopes that solar-panel prices will continue to decline.
Although First Solar may not be a buy right now, investors should watch the stock closely, as it may be a future opportunity.