In this article, we will take a look at the 10 biggest gainers on Thursday.
U.S. stocks slipped after the opening bell today. The key U.S. indices are still trying to make a rebound after August’s consumer price index (CPI) report sent them sharply lower earlier this week.
S&P 500, Dow Jones Industrial Average and NASDAQ Composite were marginally down in mid-day trading Thursday. The drop suggests that investors are avoiding riskier investments, including stocks.
However, financial stocks, including Goldman Sachs and JPMorgan, outperformed the broad market this morning. In addition, video-streaming giant Netflix, Inc. (NASDAQ:NFLX), health insurer Humana Inc. (NYSE:HUM) and luxury department store chain Nordstrom, Inc. (NYSE:JWN), also gained value today.
Shares of Netflix, Inc. (NASDAQ:NFLX) and Nordstrom, Inc. (NYSE:JWN) rose after analysts turned bullish on them. On the other hand, Humana Inc. (NYSE:HUM) shares rallied after lifting its profit outlook for the full year.
Moreover, STORE Capital Corporation (NYSE:STOR) and Wynn Resorts, Limited (NASDAQ:WYNN) were also on the list of the 10 biggest gainers on Thursday.
Photo by Austin Distel on Unsplash
10. Velo3D, Inc. (NYSE:VLD)
Number of Hedge Fund Holders: 18
Shares of Velo3D, Inc. (NYSE:VLD) rose more than five percent this morning after announcing that it sold seven Sapphire printers to Kevton Technologies, marking one of the largest sales in the history of the company.
Speaking on the development, Velo3D, Inc. (NYSE:VLD) said additive manufacturing is currently experiencing significant growth and it’s just a start. The company added that the technology would help businesses boost their market share in the coming years.
On the other hand, Kevton Technologies’ President Kevin Nguyen said their collaboration with Velo3D, Inc. (NYSE:VLD) would help them maintain their dominance in the market. Nguyen added that his company is seeing solid trends with respect to additive manufacturing technology.
9. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 22
SoFi Technologies, Inc. (NASDAQ:SOFI) is famous for its personal finance services ranging from mortgages and loans to online investing and savings accounts. The San Francisco-based company came into the limelight this morning after receiving an upgrade from BofA analyst Mihir Bhatia.
The analyst improved his ratings for SoFi Technologies, Inc. (NASDAQ:SOFI) from “Neutral” to “Buy” and lifted his price target from $8 to $9. He thinks the company’s risk/reward proposition is attractive.
Bhatia also believes SoFi Technologies, Inc. (NASDAQ:SOFI) would benefit from opportunities in student lending in the coming quarters. He also pointed towards the company’s marketing investment around NFL and user engagement associated with it.
8. STORE Capital Corporation (NYSE:STOR)
Number of Hedge Fund Holders: 22
Shares of STORE Capital Corporation (NYSE:STOR) skyrocketed over 20 percent before the opening bell on Thursday. The surge came after GIC and Oak Street decided to acquire STORE Capital in a cash transaction valued at roughly $14 billion.
STORE Capital Corporation (NYSE:STOR) said its shareholders would receive cash of $32.25 for every share they hold. The price represents a premium of 20.4 percent over the stock’s closing price in the previous trading session.
Discussing the development, STORE Capital Corporation (NYSE:STOR) said the deal offers a meaningful premium to shareholders. The company expects the deal to close in the first quarter of 2023.
7. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 26
Shares of Wynn Resorts, Limited (NASDAQ:WYNN) rose nearly eight percent in mid-day trading Thursday after Credit Suisse raised its ratings for the high-end hotels and casinos operator from “Neutral” to “Outperform.”
Credit Suisse analyst Benjamin Chaiken was primarily moved by the positive trends in Vegas and an expected recovery in Macau. Chaiken also referred to the attractive risk/reward proposition of the stock. He set a price target of $117 per share for Wynn Resorts, Limited (NASDAQ:WYNN).
Like Wynn Resorts, Limited (NASDAQ:WYNN), shares of Netflix, Inc. (NASDAQ:NFLX), Humana Inc. (NYSE:HUM) and Nordstrom, Inc. (NYSE:JWN) also rose this morning.
6. Steel Dynamics, Inc. (NASDAQ:STLD)
Number of Hedge Fund Holders: 29
Steel Dynamics, Inc. (NASDAQ:STLD) is next on the list of 10 biggest gainers on Thursday. The company’s shares rose over two percent this morning after issuing its third-quarter profit guidance above expectations.
The steel producer expects to earn $5.33 – $5.37 per share on an adjusted basis, up from $4.96 per share in the corresponding period of 2021. The outlook exceeded analysts’ average estimate of $5.03 per share.
Steel Dynamics, Inc. (NASDAQ:STLD) also issued an update on the stock repurchase. The company said that it has acquired $412 million worth of its common stock so far in the third quarter.
Discussing the outlook, Steel Dynamics, Inc. (NASDAQ:STLD) said in a statement:
“Third quarter 2022 profitability from the company’s steel operations is expected to be historically strong, but significantly lower than second quarter 2022 results, due to lower earnings from the company’s flat rolled steel operations, as lower average flat rolled steel pricing is expected to more than offset lower raw material costs and higher shipments.”
5. Nordstrom, Inc. (NYSE:JWN)
Number of Hedge Fund Holders: 31
Shares of Nordstrom, Inc. (NYSE:JWN) moved up this morning after Jefferies turned bullish on the luxury department store chain. Jefferies analyst Ashley Helgans improved her ratings for Nordstrom from “Hold” to “Buy,” citing the company’s higher-income customer base.
Helgans thinks the company’s shoppers are relatively wealthier, giving Nordstrom, Inc. (NYSE:JWN) a structural edge during an economic slowdown. Helgans’ latest coverage is based on a survey indicating that 70 percent of millennials and Generation Z shoppers plan to refresh their wardrobe in the coming months. She also raised her price target for Nordstrom, Inc. (NYSE:JWN) from $21 per share to $24 per share.
4. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 63
CSX Corporation (NASDAQ:CSX) shares turned green this morning after leading U.S. railroad companies reached a tentative agreement with worker unions over higher wages and better working conditions.
The latest development also averted a potential strike planned for the weekend. Rail stocks, including CSX Corporation (NASDAQ:CSX), have consistently outperformed the S&P 500 in recent years. However, their growth decelerated amid lower shipping volumes and staff shortages this year.
Meanwhile, CSX Corporation (NASDAQ:CSX) also made an important announcement this morning. The company named Ford’s ex-president Joe Hinrichs as its new CEO. Hinrichs will replace current chief executive James Foote. CSX Corporation (NASDAQ:CSX) added that Foote would continue to offer his advisory services to the company till March 2023.
3. Humana Inc. (NYSE:HUM)
Number of Hedge Fund Holders: 69
Humana Inc. (NYSE:HUM) is next on the list of 5 Biggest Gainers on Thursday. Its stock rose nearly five percent in pre-market trading Thursday after the health insurer lifted its profit outlook for the full year.
Excluding nonrecurring items, Humana Inc. (NYSE:HUM) now expects adjusted earnings of about $25 per share for its fiscal 2022, up from its previous guidance of about $24.75 per share. The updated outlook represents a growth of 21 percent over last year. It is also above the consensus of $24.83 per share.
In addition, Humana Inc. (NYSE:HUM) also issued its mid-term adjusted earnings guidance of $37 per share for the fiscal year 2025. The company expressed confidence in delivering sustainable profit growth in the near and long term.
2. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 82
Shares of Danaher Corporation (NYSE:DHR) turned green before the opening bell today after the company decided to spin off its environmental & applied solutions (EAS) business.
The separation would help Danaher Corporation (NYSE:DHR) better focus on its life sciences and diagnostics segments. The EAS segment primarily specializes in water purification and product identification solutions. Danaher Corporation (NYSE:DHR) expects to complete the spin-off by the end of 2023.
Separately, investment management firm Weitz Investment Management discussed Danaher Corporation (NYSE:DHR) in its second-quarter 2022 investor letter, stating:
“Consistent with that approach, portfolio activity among our long holdings tilted toward purchases. We added to almost half our holdings by varying degrees, and we were pleased to initiate new positions in Danaher (NYSE:DHR). Danaher is a provider of instruments and diagnostic tools to medical, life science, and other desirable end-markets worldwide. The business generate significant free cash flow, possess strong competitive positions, and have excellent management teams with demonstrated acquisition records.”
1. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 95
Shares of Netflix, Inc. (NASDAQ:NFLX) rose over four percent this morning after Evercore ISI improved its ratings for the video-streaming giant from “In Line” to “Outperform.” Analyst Mark Mahaney thinks the company’s revenue would get a lift from its ad-supported tier.
Mahaney also pointed towards an additional growth from password sharing fees. He remains bullish on the global video-streaming market. He also raised his price target for Netflix, Inc. (NASDAQ:NFLX) from $245 per share to $300 per share.
Meanwhile, Netflix, Inc. (NASDAQ:NFLX) appeared in the second-quarter 2022 investor letter of investment management firm L1 Capital. Here’s what the firm said:
“While it seems an eternity ago, in April Netflix, Inc. (NASDAQ:NFLX) reported Q1 2022 results and gave forward guidance which flashed many red flags. Not only were subscription numbers (and forward guidance) well below expectations, but management also gave new disclosure on the massive extent of password sharing which raises concerns that Netflix is much more mature than we had previously considered, constraining future growth. Management also haphazardly announced it will introduce an advertising-supported subscription tier, albeit currently lacking the necessary capabilities to do so. Despite continuing to produce world-leading content, we have lost confidence in management’s ability to respond to increased competition and a more challenging operating environment. We sold our entire investment in Netflix immediately post Q1 2022 results. Currently we do not consider Netflix to meet our stringent quality criteria to be considered as a potential investment in the Fund.”
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Disclosure: None. 10 Biggest Gainers on Thursday is originally published on Insider Monkey.
