Why Avis Budget Group, Depomed, and Tenet Healthcare Slumped Today

Investors saw the end of a historic bullish streak for stocks on Tuesday, as the Dow Jones Industrials failed in their bid for a 10th straight day of record-setting gains. Instead, major benchmarks were down modestly, finally giving up some ground even though the day was relatively quiet on the news front. Absent market-moving events, investors focused on the tug of war between the ongoing bull market and those who believe that stocks are long overdue for a correction. Disappointing news for certain individual companies weighed on sentiment overall, and Avis Budget Group (NASDAQ: CAR), Depomed (NASDAQ: DEPO), and Tenet Healthcare (NYSE: THC) 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.

Shares of Avis Budget Group fell 10% after the company reported disappointing second-quarter financial results. The rental car specialist said that revenue was flat from the year-earlier period, leading to weaker adjusted earnings than the most investors had expected. Avis said it suffered again from a soft used-car price environment, and it is working even harder to identify ways to cut costs. Nevertheless, a reduction in full-year earnings guidance from Avis weighed on investor sentiment, and until the company can demonstrate a viable path toward a turnaround, the stock could remain under pressure.

Even Avis Budget's Zipcar unit couldn't save the rental car company from poor results today. Image source: Avis Budget.

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Source: Fool.com