Pre-Market : Cisco gains; Wolfspeed falls: Stocks in news August 17

Pre-Market active stocks

Gainers

• The stock of Ball (NYSE:BALL) increased 3.1% after BAE Systems (LON:BAES) agreed to buy the packaging and aerospace manufacturing company’s aerospace assets for around $5.55 billion. 
• The stock of Cisco Systems (NASDAQ:CSCO) increased 2.2% after the networking equipment maker’s CEO, Chuck Robbins, touted market share gains and artificial intelligence potential. 
• America Movil (NYSE:AMX) gained 0.9% after Citigroup raised its rating on the Mexico-based telecoms company to ‘buy’ from ‘neutral,’ citing its valuation following a recent dip. 
•  Stellantis (NYSE:STLA) stock increased 0.6% after the automaker announced a $100 million investment in Controlled Thermal Resources in California, its second bet on the direct lithium extraction industry. 
• Walmart (NYSE:WMT) shares fluctuated after the company raised its full-year outlook due to strong quarterly revenues driven by rapid online growth. However, the world’s largest retailer struck a cautious tone, warning that consumers’ buying power could suffer in the following year to 18 months. 

Losers

• Hawaiian Electric (NYSE:HE) stock plunged 32% as the ongoing wildfires on Maui island are expected to be costly in terms of infrastructure replacement. 
• Wolfspeed(NYSE:WOLF) stock fell 17% after the EV chipmaker stated its next loss would be more than projected, resulting in dismal future outlook. 
• CVS (NYSE:CVS) stock fell 7.7% after Blue Shield of California said that it will no longer use CVS Health’s Caremark, its existing pharmacy-benefit manager. 
• Tapestry (NYSE:TPR) declined 1.8% after the Coach parent forecasted lower-than-expected fiscal 2024 earnings and posted lower-than-expected quarterly sales on Thursday, as demand for its luxury handbags and accessories slowed. 
• Walmart (NYSE:WMT) shares fluctuated after the company raised its full-year outlook due to strong quarterly revenues driven by rapid online growth. However, the world’s largest retailer struck a cautious tone, warning that consumers’ buying power could suffer in the following year to 18 months. 

MARKET MOVERS 

After-Market movers

GAINERS

• Ross Stores (NASDAQ:ROST) is up 5% after reporting Q2 earnings per share of $1.32, $0.16 higher than the average expectation of $1.16. Revenue for the quarter was $4.93 billion, compared to the consensus forecast of $4.74 billion. Ross Stores expects Q3 2024 earnings per share of $1.16-$1.21, compared to the consensus of $1.16. Ross Stores expects FY2024 earnings per share of $5.15-$5.26, compared to the average of $4.97. 

LOSERS

Farfetch Limited (NYSE:FTCH) 34% LOWER; Farfetch Limited (NYSE:FTCH) reported Q2 earnings per share of ($0.21), $0.07 higher than the market expectation of ($0.28). Revenue for the quarter was $579.35 million, compared to the consensus estimate of $648.27 million. Farfetch Limited expects FY2023 revenue of $2.5 billion, compared to the consensus of $2.8 billion. 

Keysight Technologies (NYSE:KEYS) is down 8%; it posted Q3 earnings per share of $2.19, $0.15 higher than the analyst expectation of $2.04. Revenue for the quarter was $1.38 billion, compared to the average forecast of $1.38 billion. Keysight’s revenue in the fourth fiscal quarter of 2023 is estimated to be in the $1.29B to $1.31B range. Non-GAAP profits per share are estimated to be in the $1.83 to $1.89 range for the fourth fiscal quarter of 2023. The midpoint of our sales projection for fiscal year 2023 is $5.45 billion. At the midpoint of our guidance, earnings per share for the full year 2023 are $8.19. 

Bill.com Holdings Inc (NYSE:BILL) is down 3%; after reporting Q4 earnings per share of $0.59, $0.18 higher than the average expectation of $0.41. Revenue for the quarter was $296 million, compared to the consensus expectation of $282.15 million. Bill.com forecasts $0.48-$0.50 EPS in Q1 2024, compared to the consensus of $0.41. Bill.com expects revenue of $295.5-298.5 million in Q1 2024, versus a consensus of $300 million. Bill.com forecasts FY2024 EPS of $1.82-$1.97, compared to the consensus of $1.82. Bill.com forecasts FY2024 sales of $1.29-1.31 billion, compared to the consensus of $1.3 billion. 

MIDDAY MOVERS

GAINERS

• The stock of Cisco Systems (NASDAQ:CSCO) increased 4% after the networking equipment maker’s CEO, Chuck Robbins, touted market share gains and artificial intelligence potential.   
• The stock of Ball (NYSE:BALL) increased by 3% after BAE Systems (LON:BAES) agreed to buy the packaging and aerospace manufacturing company’s aerospace assets for around $5.55 billion. 

LOSERS

• Wolfspeed (NYSE:WOLF) stock fell 16.4% after the EV chipmaker announced that its next loss would be more than projected, resulting in poor future expectations. 
• Hawaiian Electric (NYSE:HE) stock plunged 15% as the ongoing wildfires on Maui island are expected to be costly in terms of infrastructure replacement. 
• CVS (NYSE:CVS) stock fell 9% after Blue Shield of California said that it will no longer use CVS Health’s Caremark, its existing pharmacy-benefit manager. 
• Walmart (NYSE:WMT) shares was down 1.8% despite improving its full-year outlook, as robust quarterly sales were fuelled by strong online growth. However, the world’s largest retailer struck a cautious tone, warning that consumers’ buying power could suffer in the following year to 18 months. 
• Stellantis (NYSE:STLA) stock declined 0.1% after the automaker announced a $100 million investment in Controlled Thermal Resources in California, its second bet on the direct lithium extraction industry. 

UPGRADES BY EXPERTS 

Chevron has been upgraded to Buy.Mizuho Securities boosted its price objective on Chevron (NYSE:CVX) to $209.00 from $205.00, stating that it remains positive on exploration and production corporations in the Oil & Gas sector. 

Following poor expectations, Coherent was upgraded to Buy 

 Rosenblatt upgraded Coherent (NYSE:COHR) from Neutral to Buy, with a $45.00 price objective (down from $55.00). 

JPMorgan upgraded Pioneer Natural Resources (NYSE:PXD) from Neutral to Overweight and increased its price objective to $264.00 from $251.00. 
 

JPMorgan upgraded Alcon (NYSE:ALC) to Overweight from Neutral and boosted its price target to $89.30 from $79.80 in pre-market trading today. 

DOWNGRADES BY EXPERTS

The shares of SolarEdge Technologies has dropped as a result of a downgrade by BofA. 

SolarEdge Technologies (NASDAQ:SEDG) shares plummeted more than 4% yesterday after BofA Securities downgraded the firm from Buy to Neutral and reduced its price objective to $181.00 from $320.00.  

Marqeta reduced to Sell from Neutral BTIG downgraded Marqeta (NASDAQ:MQ) to Sell from Neutral with a $4.00 price target.The firm’s Q2 performance were good, according to the firm, but the more notable news was the renewal of a 4-year deal with Block’s (NYSE:SQ) Cash App.  

Easterly Government Properties (NYSE:DEA) shares fell more than 5% yesterday after RBC Capital downgraded the firm from Sector Perform to Underperform and reduced its price target to $13.00 from $15.00.  

Crestwood Equity Partners (NYSE:CEQP) has been downgraded to Hold from Buy, with a price target of $28.00. 
 

Earnings Calendar

Friday, August 18

Deere & Company (DE), Palo Alto Networks (PANW), Estee Lauder Cos. (EL), Vipshop Holdings Ltd. (VIPS), and XPeng Inc. (XPEV) report earnings

For details

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