The Dow Jones is down by 7.5 points today while the S&P 500 is barely up, as traders are caught between conflicting signals related to near-term rate hikes. Amid this backdrop, Applied Optoelectronics Inc (NASDAQ:AAOI), Calavo Growers, Inc. (NASDAQ:CVGW), and Agios Pharmaceuticals Inc (NASDAQ:AGIO) are surging, while tech giants Amazon.com, Inc. (NASDAQ:AMZN) and Tesla Motors Inc (NASDAQ:TSLA) are slightly in the red.
In this article, we’ll take a closer look at the five stocks and use the latest 13F filings to determine how hedge funds are positioned in each.
At Insider Monkey, we track around 750 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
Better Guidance Issued By Applied Optoelectronics
Applied Optoelectronics Inc (NASDAQ:AAOI) shares are 14% in the green today after the company raised its guidance for the third quarter. Due to strong data-center demand, Applied Optoelectronics anticipates adjusted EPS of $0.26-to-$0.29 for the period, well above the previous guidance range of $0.16-to-$0.21. Revenue is anticipated to clock in between $63 million and $65 million, also higher than the previous guidance of $56 million-to-$59 million. 11 funds that we track were long Applied Optoelectronics Inc (NASDAQ:AAOI) at the end of the second quarter, down by four funds from the end of the previous quarter.
Calavo Growers Rises on Earnings
Traders have bid Calavo Growers, Inc. (NASDAQ:CVGW) shares higher by 14% today after the company reported fiscal year 2016 third quarter earnings of $0.73 per share on revenue of $263.2 million, beating the consensus marks by $0.14 and $19.38 million respectively. Sales rose by 13.2% year-over-year as the company delivered double-digit sales growth in its Fresh and Renaissance Food Group segments. The company is projecting demand for avocado volume to come in at a healthy 2.4 billion pounds for 2016 and 2.7 billion pounds for 2017. Jim Simons‘ Renaissance Technologies established a new stake of slightly over 42,000 shares in Calavo Growers, Inc. (NASDAQ:CVGW) in the second quarter.
On the next page we’ll take a closer look at why Agios Pharmaceuticals, Amazon, and Tesla are making headlines.