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Car-related stocks take it on the chin, with declines of up to 25% in one day

By Philip van Doorn

CarMax disappointed investors, citing "vehicle affordability challenges," while Tesla's shares sank ahead of its AI Day

U.S. stocks sold off again on Thursday, with CarMax and several vehicle manufacturers and parts makers among the worst performers.

The S&P 500 fell 2.1% for the session to a new closing low for 2022, with all but 39 stocks showing declines for the day. The benchmark index is down 23.6% for the year.

The Dow Jones Industrial Average fell 1.5%, while the Nasdaq Composite Index fared worst, with a 2.8% drop.

Here's a year-to-date chart showing the sharp reversal of the recovery that had started after the S&P 500's June 16 low:

Shares of CarMax Inc. (KMX) plunged 25% on Thursday, as the used-car giant reported results for its fiscal quarter ended Aug. 31 that missed consensus estimates for sales and earnings among analysts polled by FactSet. The company said its unit sales were hurt by "vehicle affordability challenges that stem from widespread inflationary pressures, as well as climbing interest rates and low consumer confidence."

Read:CarMax stock suffers biggest selloff in 22 years as inflation, low consumer confidence lead to big profit miss

Several vehicle manufacturers were among the day's worst-performing U.S. stocks, including Ford Motor Co. (F), General Motors Co. (GM) and Tesla Inc. (TSLA). Parts manufacturers weren't spared, with BorgWarner Inc. (BWA) and Aptvi PLC (APTV) sinking as well.

Tesla's AI day is on Sept. 30, during which CEO Elon Musk is expected to tout the company's "Optimus" robot prototype and the development of its Full Self-Driving (FSD) technology. While he rates Tesla a "buy," with a price target of $360, Wedbush analyst Dan Ives wrote in a note to clients on Sept. 29 that "Musk has faced skeptics as the Street focuses on driving near-term battery technology enhancements, capacity build outs (Berlin, Austin), and fending off rising EV competition from all angles globally, and not humanoid robots."

Worst performers among the S&P 500

More than 90% of S&P 500-member companies declined on Thursday. Here are the 20 stocks in the benchmark index that fell the most:

Company                              Ticker  Sept. 29 price change  September price change  2022 price change  Decline from 52-week intraday high  Date of 52-week intraday high 
CarMax Inc.                           KMX                   -24.6%                  -26.3%             -50.0%                              -58.2%                     11/08/2021 
SolarEdge Technologies Inc.           SEDG                   -8.3%                  -14.6%             -16.0%                              -39.6%                     11/22/2021 
Royal Caribbean Group                 RCL                    -7.9%                    6.9%             -43.2%                              -55.6%                     11/08/2021 
Generac Holdings Inc.                 GNRC                   -7.1%                  -21.0%             -50.5%                              -66.8%                     11/02/2021 
Carnival Corp.                        CCL                    -6.8%                   -3.2%             -54.5%                              -66.1%                     09/28/2021 
Tesla Inc.                            TSLA                   -6.8%                   -2.7%             -23.9%                              -35.3%                     11/04/2021 
Aptiv PLC                             APTV                   -6.4%                  -13.9%             -51.2%                              -55.5%                     11/04/2021 
Edison International                  EIX                    -6.3%                  -15.2%             -15.8%                              -21.6%                     04/21/2022 
Advanced Micro Devices Inc.           AMD                    -6.2%                  -24.4%             -55.4%                              -61.0%                     11/30/2021 
Boeing Co.                             BA                    -6.1%                  -21.8%             -37.7%                              -46.4%                     11/15/2021 
Caesars Entertainment Inc.            CZR                    -6.0%                  -24.8%             -65.3%                              -72.9%                     10/01/2021 
V.F. Corp.                            VFC                    -5.8%                  -25.8%             -58.0%                              -61.0%                     11/16/2021 
Ford Motor Co.                         F                     -5.8%                  -24.7%             -44.8%                              -55.7%                     01/13/2022 
General Motors Co.                     GM                    -5.6%                  -13.0%             -43.3%                              -50.5%                     01/05/2022 
Lumen Technologies Inc.               LUMN                   -5.6%                  -25.9%             -41.2%                              -49.1%                     11/05/2021 
BorgWarner Inc.                       BWA                    -5.6%                  -16.0%             -29.7%                              -36.8%                     01/13/2022 
Norwegian Cruise Line Holdings Ltd.   NCLH                   -5.3%                    6.0%             -33.2%                              -52.9%                     11/05/2021 
PPL Corp.                             PPL                    -5.2%                  -10.8%             -13.7%                              -16.3%                     08/17/2022 
Xcel Energy Inc.                      XEL                    -5.2%                  -12.0%              -3.5%                              -15.8%                     09/12/2022 
Dominion Energy Inc.                   D                     -5.1%                  -13.1%              -9.5%                              -20.0%                     04/11/2022 
                                                                                                                                                                 Source: FactSet 

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-Philip van Doorn

 

(END) Dow Jones Newswires

09-30-22 0641ET

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