3 Stocks Under Pressure: Poised for a Comeback?

Markets are focused on major events, including the US government shutdown, budget deliberations in the UK, and the rebound in Tesla sales.

Meanwhile, some companies under the SpreadEx ‘trending markets’ watchlist have been declining for reasons that have gone a bit under the radar and could still generate interest from traders.

Trending Stocks and 30-Day Performance

• Freeport-McMoran (FCX), mcap $55.8B, -13.5%
• Carnival (CCL), mcap £25.9B, -5.6%
• Tate & Lyle (TATE), mcap £1.88B, -27.5%

Freeport-McMoran Still Affected by Flood Accident

The operator of the world's second-largest copper mine has been unable to restart operations for almost a month, as rescue efforts continue. On 8 September, of the Grasberg mine in Indonesia, trapping seven workers.

Since then, only two bodies have been recovered, and the mine has been shut as efforts continue to find the remaining miners. The company declared force majeure on September 25 because the closure prevented it from fulfilling its contracts due to depleted inventories. Currently, it's not known when operations will resume. The impact on copper supply has increased the metal's price, but Freeport, the world's largest copper producer, has lagged behind.

Carnival Struggles Despite Strong Earnings

The cruise company is in the news after , which beat estimates but ended the day in the red. Carnival has been facing a series of challenges lately that have left investors a little nervous despite solid earnings. For the firm's fiscal third quarter, it achieved a record $2.0 billion in net income.

But that didn't mean a higher payout for shareholders, as the company continues to address a massive debt pile accumulated during the pandemic. Even the top-line record of $8.1 billion seems paltry in comparison to the $25 billion in long-term debt the company is working on paying down (while maintaining $1 billion a year in capital expenditures to expand the fleet).

Following the earnings release, the company announced to secure lower interest rates, part of a long-standing and potentially long-lasting programme aimed at bringing its debt under control. In the long run, lower interest rates and a steady economy could leave Carnival in an optimal position. Still, for now, it seems investors are wary about its share price.

Tate & Lyle Hit by Analyst Price Cut Updates

The beverage and food company , providing an update on its purchase of CP Kelco and warning about a slowdown in the market.

However, the share price had already been declining for days before that. for the company back on September 22, precipitating the losses. The investment bank warned about the company's mid-term targets as US food companies moved away from additives under pressure from the Trump Administration's shift in policy undertaken by Health and Human Services head, RFK Jr.

His policies are expected to lead to a reduction in the demand for some of Tate & Lyle's products, such as sucralose and high-fructose corn syrup. Barclays piled on after the company's trading update, from £6.50, citing pricing pressure in its core food and beverages business, which includes the ingredients mentioned above that are being pressured out in the key US market.

Key Takeaway

While broader uncertainties keep dominating headlines, these three stocks go to show that individual company fundamentals can, at times, drive performance. Such divergences from market sentiment often offer favourable risk-reward opportunities, though trading comes with a high risk of losing.