We recently published a list of 10 Firms Hit Hard in Thursday’s Trading. In this article, we are going to take a look at where New Fortress Energy Inc. (NASDAQ:NFE) stands against other firms that hit hard in Thursday’s trading.
Shares of 10 companies were hit hard on Thursday, bucking a mostly optimistic broader market, as investor sentiment was dragged down by disappointing earnings performances and loss of key partnerships.
The Dow Jones was the sole decliner during the day, losing 0.28 percent in its valuation. In contrast, the S&P 500 and Nasdaq Composite both ended firmer, rallying by 0.36 percent and 0.51 percent, respectively.
This article details the reasons behind the 10 companies’ lackluster performance.
To come up with Thursday’s worst performers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
New Fortress Energy Inc. (NASDAQ:NFE) fell for a fifth consecutive day on Thursday, dropping 9.24 percent to finish at $12.57 apiece as investor sentiment was weighed down by twin news that a shareholder law firm is investigating the company over issues about their revenue outlook, while also earning a credit rating downgrade from an investment bank.
On Thursday, law firm Johnson Fistel LLP said it launched an investigation into New Fortress Energy (NASDAQ:NFE) following a class action lawsuit over claims that it created the false impression that it possessed reliable information on its projected revenue growth outlook, while simultaneously downplaying the risks associated with its Fast Liquefied Natural Gas projects.
Meanwhile, the company earned a downgraded issuer credit rating from “B+” to “B” from S&P Global Ratings over concerns about its liquidity and high leverage.
The downgrade also reflects S&P’s outlook on the company’s financial health.
Overall, NFE ranks 8th on our list of firms that hit hard in Thursday’s trading. While we acknowledge the potential of NFE as an investment, our conviction lies in the belief that 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 NFE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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