The S&P 500’s top losers on September 25, 2017, were:
Quest Diagnostics, which provides clinical laboratory services, was the S&P 500’s top loser on September 25. The proposal to change the reimbursement rates dented the market sentiment on Quest Diagnostics.
Last week, Centers for Medicare and Medicaid Services (CMS) proposed a cut in the reimbursement rates for clinical laboratory tests by 9%–10% in 2018. The leaders in clinical laboratory services like Quest Diagnostics, Laboratory Corporation of America (LH), and GenMark Diagnostics (GNMK) fell on Monday in response to proposed Medicare cuts. According to the proposal, the reimbursements will be lowered for 75% of the lab test codes and increased for 10% of the test codes.
On September 25, Quest Diagnostics fell 7.4% to $94.38—the lowest close in seven months. Laboratory Corporation of America (LH) and GenMark Diagnostics fell 3.1% and 0.74%, respectively, on Monday.
TripAdvisor, which is a US travel website company that provides hotel and travel reviews, fell on Monday. The market sentiment on TripAdvisor was lower on Monday amid analysts’ downgrade.
The stock fell after Jake Fuller, an analyst at Guggenheim, lowered TripAdvisor’s outlook. Citing increased competition from Priceline Group (PCLN), Fuller decreased the revenue growth forecast for 2H17 from 7% to 5%. He estimated that the revenue from cost-per-click would fall 1.6%. The previously released forecast for cost-per-click revenues in 2H17 was 1.5% growth. On Monday, TripAdvisor fell 7.1% and closed the day at $41.22—the lowest close in a month.
In the next part of this series, we’ll discuss how Advanced Micro Devices and Total System Services performed on Monday.