Why Apollo Tourism & Leisure, Costa, GUD, & Zip Co shares sank lower today

The Costa Group Holdings Ltd (ASX:CGC) share price and the Zip Co Ltd (ASX:Z1P) share price are two of four sinking notably lower on Thursday. Here's why…

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In afternoon trade the S&P/ASX 200 index is on course to finish the day notably lower for the second day in a row. At the time of writing the benchmark index is down 0.7% to 6,396.1 points.

Four shares that have fallen more than most are listed below. Here's why they have sunk lower:

The Apollo Tourism & Leisure Ltd (ASX: ATL) share price has crashed 32% lower to 41.5 cents after the recreational vehicle company downgraded its guidance for the second time this month. On May 2 Apollo Tourism & Leisure downgraded its net profit after tax guidance to between $17.5 million and $19.5 million. Since then there has been a further deterioration in trading conditions, leading to management downgrading its guidance to between $14 million and $15.5 million.

The Costa Group Holdings Ltd (ASX: CGC) share price been smashed and is down almost 25% to $3.91 after the horticulture company downgraded its calendar year 2019 earnings guidance at its annual general meeting. Due to a number of issues, Costa expects NPAT-SL to be in the range of $57 million to $66 million. This will be an increase of between 0.7% and 16.6%, compared to its previous guidance of at least 30% growth.

The GUD Holdings Limited (ASX: GUD) share price has fallen 4.5% to $10.49 after being downgraded by Credit Suisse. According to the note, the broker is concerned about increasing competition among part suppliers. Due to its reliance on its Auto segment, the broker appears concerned that there is downside risk to its earnings. Credit Suisse has a neutral rating and $12.00 price target on its shares.

The Zip Co Ltd (ASX: Z1P) share price has fallen 4.5% to $3.22 despite there being no news out of the buy now, pay later provider. However, with the tech sector sinking lower today and its shares up significantly in 2019, I suspect that profit taking could be weighing on Zip Co's shares. After all, even after today's decline its shares are up almost 200% this year.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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