When stock markets trade at all-time highs, companies that plunged by 10% or more are the ones to be wary of.
Alexandria Real Estate (ARE) fell by 11.3% on Tuesday. Shareholders sold the stock after the firm posted Q1 FFO of $1.73. Revenue of $671.02 million is down by 11.5% Y/Y. For 2026, Alexandria is forecasting an FFO of $6.30 - $6.50. This is down from $6.25 - $6.55 issued on January 26.
The company is a strong real estate firm for the life science market. However, investors are selling the stock anytime it bounces back.
Zimmer Biomet Holdings (ZBH) lost 10.6% yesterday. The firm posted a 9.4% Y/Y increase in revenue, to $2.09 billion. For the year, it forecasts an EPS of $8.40 - $8.55, up from $8.30 - $8.45. The increased adjusted diluted EPS target did not impress markets.
Pentair (PNR) fell by 10.2% on Tuesday. The Q1 non-GAAP EPS of $1.22 is on revenue of $1.04 billion (+4% Y/Y). Markets are avoiding the stock because its growth is too low. The global water treatment firm sees green shoots in the commercial water solutions business. Despite innovating its product and targeted marketing, investors need to see margins expand.
Pentair is a “show me” story. The stock is still richly valued with a PEG GAAP of 4.6 times. That is double that of the sector median.
