5 Worst Stock Ideas Of October

After a rough couple of months in August and September, the S&P 500 booked a stellar month of October. The index closed out the month up a strong 8.3 percent.

However, not all index members were invited to the October party. Here’s a list of the five worst-performing S&P 500 stocks in the past month.

5. Tenet Healthcare Corp THC

The healthcare sector was one of the biggest laggards in October, and Tenet Healthcare was hit hard, falling to new 52-week lows. An October 22 downgrade by Mizuho from Buy to Neutral certainly didn’t help the stock’s cause, and neither did the accompanying price target reduction from $68 to $30. The stock finished the month down 13.7 percent.

4. Western Digital Corp WDC

Western Digital shareholders are apparently not buying that the company’s October announcement that it is acquiring SanDisk Corp SNDK is what the company needs to put it on the right track. Management is anticipating half a billion dollars in synergies should the deal pass regulatory scrutiny, but Western Digital’s share price fell by 14.2 percent in October.

Related Link: 5 Best Stock Ideas Of October

3. Endo International plc ENDP

The heat from controversies surrounding drug pricing, suppliers, sales channels and potential new regulations has hit specialty pharma particularly hard, and Endo has endured a steep sell-off. The stock finished October down 14.3 percent on the month.

2. Quanta Services Inc PWR

The energy contractor's shares fell 29 percent on October 16 when the company pre-reported earnings that fell well short of market expectations. Project delays and aggressive competition were the two major causes of the disappointment, but the market was in no mood for excuses from Quanta. The stock finished October down 18.5 percent.

1. CONSOL Energy Inc. CNX

The honor of the worst October investment goes to CONSOL. Both natural gas prices and coal prices remain heavily depressed, but the company fared even worse in Q3 than the market was expecting. CONSOL reported an adjusted loss of $64 million for the quarter, and the stock plummeted a staggering 27.1 percent in October.

Another abysmal month in October allowed CONSOL to extend its lead as the worst-performing S&P 500 stock of 2015. Shares have now declined 80.2 percent year-to-date.

Disclosure: the author holds no position in the stocks mentioned.