Schaeffer's Top Stock Picks for '25

3 Stocks Making Sharp Moves Lower Today

An explosive WSJ report has buried Care.com stock

Managing Editor
Mar 11, 2019 at 2:34 PM
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The Dow is ready to snap its five-day losing streak thanks to a big day from the tech sector. Among stocks making notable moves lower today are online family care marketplace Care.com Inc (NYSE:CRCM), aircraft components maker Triumph Group Inc (NYSE: TGI), and marijuana concern Cronos Group Inc (NASDAQ:CRON). Here's a quick look at what's got the shares of CRCM, TGI, and CRON struggling today.

CRCM Set for Worst Day in Months After WSJ Report

Over the weekend, a Wall Street Journal report (subscription required) came out chronicling the mis-treatment and negligence of caregivers on Care.com. Among the more damning accusations included falsely listing day-care centers as state-licensed. In response, Care.com stock is down 13.2% to trade at $20.32 today, on track for its worst single-session drop since Oct. 10. CRCM nabbed a roughly five-year high of $25.71 on March 4, and despite the gap lower today, is still holding almost 6% above its year-to-date breakeven level. 

There's yet to be any sort of shift in the analyst community. Of the six brokerages covering CRCM, half rate it a "strong buy" and the other half rate it a "hold" or "sell." 

Boeing Supplier Lower After 737 Crash

With blue chip Boeing (BA) under pressure after another 737 Max 8 crash, so too are its suppliers like Triumph Group, at last check down 4.7% to trade at $20.23. However, TGI it still boasts a 77% lead year-to-date and today's pullback appears to have found support at the 40-day moving average. 

Short sellers are likely cheering today's decline. Short interest increased by 15.4% in the most recent reporting period to 8.03 million shares, the most since July. This represents 16.5% of the stock's total available float, and 8.4 times the average daily trading volume.

Analyst: Weed Stock Could Face Production-Based Headwinds

Cronos Group stock is down 4.5% to trade at $20.77, after BMO downgraded the cannabis name to "underperform" from "market perform." The analyst in coverage believes the company's production remains behind others in the sector, and could lead to a lowered valuation. Despite the pullback today, CRON has still doubled in 2019, and snagged a record high of $25.10 back on Feb. 4. 

In the options pits, Cronos sports a Schaeffer's put/call open interest ratio (SOIR) of 1.30. This ratio is in the 100th percentile of its annual range, suggesting near-term options traders haven't been more put-biased in the past year. 

 
 

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