Pre-Market : Wayfair’s gains; Johnson & Johnson falls: Stocks in news July31

21Pre-Market

Pre-Market active stocks

Gainers

• Wayfair’s (NYSE:W) shares increased 8.2% after Piper Sandler upgraded the e-commerce business to ‘Overweight’ from ‘Neutral,’ citing improved sales, gaining market share, and an appealing valuation.
• SoFi Technologies (NASDAQ:SOFI) stock increased 3.7% after the online personal finance startup handily outperformed revenue forecasts in its second quarter while reporting a narrower-than-expected loss.
• Adobe (NASDAQ:ADBE) gained 2.5% after Morgan Stanley upgraded the computer software business to ‘Overweight’ from ‘Equal weight,’ noting potential upside from Generative AI.
• Chevron (NYSE:CVX) stock jumped 1.6% after Goldman Sachs upgraded the oil major’s rating to ‘Buy’ from ‘Neutral,’ citing the possibility for strong future growth.
• The shares of Quest Diagnostics (NYSE:DGX) increased 0.5% after the firm announced the launch of the first direct-to-consumer blood test to detect aberrant levels of beta amyloid, a crucial Alzheimer’s protein.
• Walmart (NYSE:WMT) stock climbed 0.3% after the Wall Street Journal reported that the retail giant had increased its stake in Flipkart by purchasing $1.4 billion in shares from a big investor in the Indian e-commerce business.

Losers

• Johnson & Johnson (NYSE:JNJ) stock dipped 1.7% after a U.S. judge rejected the drugmaker’s second attempt to settle tens of thousands of talc-related cases.
• Carvana (NYSE:CVNA) stock dropped 1.5% after Jefferies downgraded the online used car retailer to ‘Underperform’ from ‘Hold,’ citing the company’s present tailwinds as unsustainable.

MARKET MOVERS 

After-Market movers

GAINERS

• e.l.f. Beauty, Inc. (NYSE:ELF) 16% higher; Q1 EPS of $1.10, $0.53 greater than consensus estimate of $0.57. Quarterly revenue was $216.3 million, exceeding the consensus expectation of $184.58M. e.l.f. Beauty, Inc. expects FY2024 EPS of $2.19–$2.22. e.l.f. Beauty, Inc. expects $792-802M in FY2024 revenue, compared to $728M consensus.
• Aspen Technology (NASDAQ:AZPN) 11% higher; Q4 EPS $2.13, $0.15 below consensus estimate of $2.28. Revenue was $320.6M vs $326.56M expected. Aspen Technology expects FY2024 EPS of $6.51, more than the consensus $6.32. Aspen Technology expects FY2024 revenue of at least $1.12B, compared to $1.17B consensus.
• Match Group (NASDAQ:MTCH) 11% higher; Q2 EPS $0.48, $0.04 more than analyst expectation of $0.44. Quarterly revenue was $830M, exceeding the consensus expectation of $811.36M. Match Group expects Q3 2023 revenue of $875-885M versus the average of $863.4M.
• Olo Inc (NYSE:OLO) 7% higher; posted Q2 EPS of $0.04, $0.02 more than analyst forecast. Revenue was $55.3M vs $53.16M expected. Olo Inc. expects $56-56.5M in Q3 2023 revenue, compared to $54.53M consensus. Olo Inc. expects FY2023 sales of $220-221M versus the consensus of $216.65M.
• AMD (NASDAQ:AMD) 5% higher; announced Q2 EPS of $0.58, $0.01 greater than average estimate of $0.57. Compared to the average expectation of $5.32B, quarterly revenue was $5.4B. Advanced Micro Devices, Inc. expects $5.4-6B in Q3 2023 revenue, compared to $5.82B consensus.

LOSERS

• Axalta Coating Systems (NYSE:AXTA) 15% down; Q2 EPS $0.27, $0.11 below consensus estimate of $0.38. Quarterly revenue was $1.29 billion, below the consensus forecast of $1.34B.
• Nevro Corp (NYSE:NVRO) 13% lower; Q2 EPS of ($0.69) matched analyst estimates. Quarterly revenue was $108.8M versus the consensus estimate of $108.2.
• Penumbra, Inc. (NYSE:PEN) 10% down; Q2 EPS $0.43, $0.15 greater than consensus estimate of $0.28. Quarterly revenue was $261.5M versus the consensus expectation of $253.21M. Penumbra, Inc. expects FY2023 revenue of $1.05-1.07B, compared to $1.05B consensus.
• Camping World Holdings Inc (NYSE:CWH) 9% down; Q2 EPS $0.73, $0.04 below average estimate of $0.77. Quarterly revenue was $1.9B, below the consensus forecast of $1.97B.
• Alight Inc (NYSE:ALIT) 6% lower; Q2 EPS of ($0.14), $0.26 worse than average estimate of $0.12. Compared to the average expectation of $800.79M, quarterly revenue was $806M.

MIDDAY MOVERS

GAINERS

• Arista Networks (NYSE:ANET) stock jumped more than 22% after the computer networking company forecasted higher-than-expected quarterly revenue after presenting better-than-expected earnings, boosted by stronger demand for its cloud networking gear.
• Caterpillar (NYSE:CAT) stock jumped 8.6% after the construction equipment company announced a higher quarterly profit, owing to increased infrastructure expenditure in places such as North America.
• HSBC Holdings plc (NYSE:HSBC) ADRs increased 0.2% after Europe’s largest bank proposed a $2 billion buyback in the first half of 2023, as it reported stronger profits and sales.

LOSERS

• ZoomInfo Technologies’ (NASDAQ:ZI) stock dropped 25% after the software and data business lowered its full-year earnings and revenue forecast.
• JetBlue’s (NASDAQ:JBLU) stock dropped 7.4% after the low-cost carrier reduced its full-year profit prediction, citing an impact from the end of its revenue-sharing agreement with American Airlines (NASDAQ:AAL).
• BP (NYSE:BP) ADRs slumped 1.1% as the oil giant increased its dividend and announced a share buyback despite a drop in earnings.
• Amazon (NASDAQ:AMZN) stock dipped 1% after the online retailer announced plans to invest around $7.2 billion in Israel through 2037, as well as the launch of Amazon Web Services data centers in the nation.
• Merck (NYSE:MRK) dipped 0.7% after the drugmaker reported a narrower-than-expected second-quarter loss and improved its full-year profit outlook, citing the success of its two top-selling drugs, cancer treatment Keytruda and human papillomavirus vaccination Gardasil.
• Pfizer (NYSE:PFE) stock declined 0.4% after the company beat profits projections but fell short of quarterly revenue estimates, owing to falling sales of its COVID-19 drugs.

UPGRADES BY EXPERTS

Sweetgreen gains on the Piper Sandler update.

Sweetgreen (NYSE:SG) shares rose more than 6% yesterday after Piper Sandler upgraded the stock to Overweight from Neutral and boosted its price objective to $19 from $13, citing inflecting margins.

Nutrien has been upgraded at TD Securities.

Nutrien (NYSE:NTR) was upgraded to Buy from Hold by TD Securities, and its price objective was raised to $83.00 from $72.00.

Bath & Body Works (NYSE:BBWI) was upgraded to Overweight from Equal Weight by Barclays, and its price objective was raised to $45.00 from $41.00. Pre-market, shares were up more than 1%.

Verra Mobility (NASDAQ:VRRM) shares rose nearly 3% yesterday after Deutsche Bank upped its price objective to $26.00 from $21.00 and upgraded the business to Buy from Hold.

DOWNGRADES BY EXPERTS

Salesforce has been reduced by Morgan Stanley ahead of the second quarter.

Salesforce (NYSE:CRM) has been reduced to Equal Weight from Overweight, with a price objective of $278.00 (down from $251.00).

Citi has cut Estée Lauder’s prices.

Estée Lauder (NYSE:EL) shares dipped more than 1.5% in premarket trading today after Citi reduced its price objective to $195.00 from $240.00 and downgraded the firm to Neutral from Buy.

Tractor Supply (NASDAQ:TSCO) was downgraded from Overweight to Equal Weight by Barclays, and its price objective was reduced from $254.00 to $224.00. The decision follows the company’s poor Q2 results, which fell short of consensus projections last week.

Oppenheimer downgraded General Electric (NYSE:GE) to Perform from Outperform, citing valuation concerns, highlighting the stock’s 35% gain since it was upgraded in December.

Earnings Calendar

Tuesday, August 1

Merck (MRK), Pfizer (PFE), Toyota Motor Co. (TM), Advanced Micro Devices (AMD), Caterpillar (CAT), BP (BP), Starbucks (SBUX), Uber Technologies (UBER), Mitsubishi Financial Group (MUFG), Altria Group (MO), and Marriott International (MAR) report earnings

Wednesday, August 2

Qualcomm (QCOM), CVS Health Corp. (CVS), Shopify (SHOP), PayPal Holdings (PYPL), Equinix (EQIX), Thomson Reuters Corp. (TRI), Ferrari (RACE), Humana (HUM), Phillips 66 (PSX), and MetLife Inc. (MET) report earnings

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