Each week Forcerank runs a variety of games covering different industries. We have found that the lowest-ranked companies in deliver the biggest negative price movement for the week. This week's losers include Viacom, Wells Fargo, Tableau, Groupon, and Coach
Viacom Inc (NASDAQ:VIAB) | Media: After coming off a legal battle that lasted virtually the whole summer, Viacom continues to make headlines. Now the media conglomerate is believed to no longer be interested in selling the underperforming Paramount Pictures. Shares are already down 10% this year and new downgrades could extend those losses even further. The most recent downgrade came from Stifel, which downgraded the stock from buy to hold citing concerns over Paramount. Closely watched technical indicators like on balance volume and MACD support this current trend down.
Wells Fargo (NYSE:WFC) | Financials: Wells Fargo is still in the midst of its fake account scandal that will surely not be forgotten in the near future. The company’s CEO was ordered to testify on Capitol Hill about his involvement, or lack thereof, in the scandal. At the testimony, Stumpf openly denied that this was an orchestrated act by management and apologized to all those who were impacted. It’s often the case that a company’s stock performs poorly when its CEO is interrogated by the Senate. Sometimes no news is good news.
Tableau (NYSE:DATA) | Enterprise Software (Small/Mid): Shares are down 43% year to date thanks to a weak fourth quarter that cut the stock by 25%. Since then, shares have largely traded sideways with recent earnings reports failing to shine new light. Adding to its woes, the stock has become victim to a slew of downgrades. In the past few months, RBC Capital, DA Davidson and Deutsche Bank (NYSE:DB) all downgraded the stock. More recently, the company gave a bearish crossover when share prices dipped below its 50-day moving average.
VMware (NYSE:VMW) | Most Heavily Shorted: VMware was the worst-ranked stock in the two games it was featured in this week: most heavily shorted and large enterprise software. Shares are down 8.4% in the past 12 months driven by an ongoing slowdown in revenue growth. Meanwhile, the company’s chart doesn’t do it any justice. There are multiple gaps below its current trading price that still need to be filled. Additionally, negative OBV and declining MACD support a downturn on the horizon.
Coach (NYSE:COH) | Apparel: Coach shares are down nearly 11% in the past month with abysmal fourth-quarter earnings largely to blame for the downturn. Just last week the stock was downgraded by Morgan Stanley (NYSE:MS) to Underweight from Equal Weight. Luxury brands like Coach haven’t translated well in this current retail environment where discounters are king. Frequent discounts and growing outlet stores have kept sales afloat but have severely hampered margins. Meanwhile, a bearish crossover of its 200-day average above its 20-day average is a sign of near-term weakness. The saving grace in Coach’s freefall is that it appears to be oversold, which means a reversal could be on the horizon.