Why Avantor Inc. (AVTR) Went Down On Wednesday?

Insider Monkey
03-13

We recently published a list of Today’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where Avantor Inc. (NYSE:AVTR) stands against other worst-performing stocks.

Wall Street’s main indices finished mixed on Wednesday, with the Dow Jones emerging as the sole decliner as investors digested more news of tariff threats from President Donald Trump.

The Dow Jones dropped by 0.20 percent. In contrast, the S&P 500 and Nasdaq clocked in gains of 0.49 percent and 1.22 percent, respectively.

Ten companies mirrored a mostly pessimistic trading—four of which were Chinese stocks—as traders sold off to minimize risks from the potential impact of the US’ trade war with China.

In this article, we have identified the 10 worst performers on Wednesday and detailed the reasons behind their performance.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

A team of scientists working together to develop a new lab product or process.

Avantor Inc. (NYSE:AVTR)

Avantor lost 6.73 percent of its value on Wednesday, a third straight day, over the lack of a fresh catalyst to buoy investing appetite and lingering concerns amid downgraded outlooks.

AVTR, a life science tools company that aims to provide mission-critical products and services to the life sciences and advanced technology industries, earned a generally pessimistic outlook from analysts recently due to missed earnings estimates.

While AVTR registered a 408-percent jump in net income for the fourth quarter of 2024, net revenues, however, dipped to $1.69 billion from $1.7 billion. Revenue figures missed the $1.71 billion mark as expected by analysts.

Meanwhile, net income in the full year of 2024 also surged by 121 percent to $711.5 million from $321.1 million year-on-year.

Overall, AVTR ranks 2nd on our list of worst-performing stocks. While we acknowledge the potential of AVTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVTR but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.

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