NEW YORK, NEW YORK – SEPTEMBER 03: Traders work on the floor of the New York Stock Exchange (NYSE) on September 03, 2025 in New York City. The Dow was down over 150 points in morning trading. (Photo by Spencer Platt/Getty Images)
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During the week ending September 5, the S&P 500 was essentially unchanged, slipping 0.12%. In contrast, several notable S&P 500 stocks fell sharply, driven by a mix of earnings outlook revisions, regulatory risk, downgrades, demand concerns, and leadership changes.
Macroeconomic data pointed to a softer labor market, with nonfarm payrolls rising by just 22,000 in August—well below the 75,000 forecast—while the unemployment rate increased to 4.3%. These readings reinforce expectations that the Federal Reserve will proceed with its widely anticipated interest rate cut later this month. See an important current market context – S&P 500 Index To Crash 8%?
We break down the top movers below. If you want upside with less volatility than single-stock positions, consider the High Quality Portfolio. It has comfortably outpaced its benchmark—a blend of the S&P 500, Russell, and S&P MidCap indexes—and has delivered returns above 91% since its inception.
LULU stock plunged 17% after management cut full-year revenue and EPS guidance despite beating earnings estimates for the quarter. The guidance reset—rather than quarterly performance—sparked the latest selloff. U.S. same-store sales dropped 4%, offset by robust 17% growth in China and 12% elsewhere internationally. Now, the stock trades at just 1.8x trailing revenues, dramatically below its five-year average P/S ratio of 6.9, though persistent domestic softness and near-term headwinds may keep investors cautious for now.
KVUE stock fell 10% following reports that the U.S. Health and Human Services Secretary may link its Tylenol brand to autism risk when used by pregnant women. Tylenol generates nearly 10% of Kenvue’s sales, so new litigation momentum could be significant. The stock is now valued at 2.6x trailing revenues, matching its recent 2-year average, and reflects uncertainty hanging over the legal landscape for this 2023 Johnson & Johnson spin-off.
S&P 500 Top Losers For The Week Ending Sep 5
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3. TransDigm (NYSE: TDG): Ratings Downgrades and Aftermarket Uncertainty
TDG stock declined 9% as research firms downgraded the shares, citing risks around normalization in its profitable aftermarket aerospace business and a lackluster recent quarter. Despite the selloff, TDG still trades at a premium 9.5x trailing revenues—above its 5-year average P/S of 7.9—which may reflect both confidence in long-term growth and heightened expectations after a strong run.
Constellation Brands (STZ) dropped 8% after projecting lower fiscal 2026 sales and earnings due to weakening beer demand in its key Hispanic American market. At $150 per share, STZ trades at 2.7x trailing revenues, well below its five-year average of 4.7x, but it could well be a value trap unless trends in beer consumption reverse.
MGM stock lost 8% after the announcement that longtime COO Corey Sanders will exit as Las Vegas visitation declines continue—a trend now seven months running, with July visitor counts down 12% year-over-year. The stock trades at just 0.6x trailing sales, far below its 1.6x five-year average. However, continued margin pressures and demand softness may justify the discounted valuation.
Remember, there is always meaningful risk when investing in a single stock, or just a handful of names. Consider the Trefis High-Quality (HQ) Portfolio, which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.