Why Are These Stocks Surging on Friday?

Sunedison Inc (NYSE:SUNE)’s shares have advanced by 7.34% in morning trading on the back of two analyst upgrades. The analysts at Axiom Securities and Avondale Partners both bumped up their ratings on the beleaguered stock to ‘Outperform’ from ‘Hold’ on the belief that Sunedison Inc (NYSE:SUNE)’s painful deleveraging and diluting steps are de-risking the company and allowing management to move forward with the big renewable energy opportunity ahead of it. The Avondale analysts believe that the news flow over Sunedison will get better, as investors “focus on the company’s ability to generate up to $1 billion in cash flow between now and its next debt maturities in early 3Q18”. Of the around 730 elite funds we track, 73 funds owned $1.06 billion worth of Sunedison shares (accounting for 46.80% of the float) at the end of September.

After yesterday’s over 4% retreat, Facebook Inc (NASDAQ:FB) bounced back by 2% in morning trading as investors snap up the company because of its long term potential. The social media and messaging company continues to grow, as Facebook Messenger has now topped 800 million active users and WhatsApp has exceeded 900 million. With Asian messaging companies making substantially more in terms of profit per messaging app user, Facebook Inc (NASDAQ:FB) has a lot of EPS growth left. Shares trade at 34 times forward earnings, but smart money investors are bullish with 128 funds from our database holding shares of Facebook as of the end of September.

Nokia Corporation (ADR) (NYSE:NOK) is 3% in the green today as investors become more optimistic on the company’s future growth prospects. The telecom giant officially took control of rival Alcatel-Lucent in a 15.6 billion euro ($17 billion) all-stock deal this week and plans to begin integrating operations between the two companies next week. The hedge fund sentiment towards Nokia Corporation (ADR) (NYSE:NOK) has been stable, with the number of funds (among those we track) owning shares of the tech giant rising by one to 24 during the third quarter.

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