We recently published a list of 10 Stocks Drop The Most Amid Investor Caution. In this article, we are going to take a look at where TAL Education Group (NYSE:TAL) stands against other stocks that drop the most amid investor caution.

Wall Street kicked off the first trading day of the week on a sour note, with all the major indices closing mixed as investors chose to stay on the sidelines while waiting for further updates on key economic news, including trade tariffs and government spending, among others.

The Dow Jones was the sole gainer among all major indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.

Meanwhile, we have compiled a list of 10 companies that mirrored the broader market downturn and detailed the reasons behind their drop.

To come up with Monday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

Note that the companies we covered in-depth last Friday have been excluded from the list.

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TAL Education Group (NYSE:TAL)

TAL Education declined by 7.54 percent on Monday to finish at $13.36 apiece as uncertainties surrounding the trade industry within the US and China continued to hound Chinese firms, including TAL.

Along with several Chinese counterparts, the drop came after President Donald Trump issued a memorandum on Friday encouraging foreign investments in the US while taking a swipe at China by directing the Committee on Foreign Investment in the United States (CFIUS) to impose stricter regulations on Chinese investments in key strategic sectors.

According to the memo, China is “exploiting our capital and ingenuity to fund and modernize their military, intelligence, and security operations, posing direct threats to United States security.”

Under the directive, the US will establish new rules to curb “the exploitation of its capital, technology, and knowledge by foreign adversaries such as China to ensure that only those investments that serve American interests are allowed.”

The memorandum came at a time when TAL Education was actively expanding its footprint in the US.

Overall, TAL ranks 10th on our list of stocks that drop the most amid investor caution. While we acknowledge the potential of TAL 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 TAL but that 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

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