In this article, we will take a look at the 10 stocks that rebounded this week.
U.S. stocks extended their losses on Friday morning after a report from the Bureau of Labor Statistics showed unemployment rate surprisingly fell to 3.5 percent in September, from 3.7 percent in the prior month. The report also revealed that U.S. recruiters added 263,000 new jobs during the last month, above the consensus of 250,000.
The data suggests that U.S. economy is still producing jobs at a decent pace despite recent hikes from the Fed. Many expect additional increases in interest rates following the latest data.
Meanwhile, Schlumberger Limited (NYSE:SLB), Take-Two Interactive Software, Inc. (NASDAQ:TTWO) and Lamb Weston Holdings, Inc. (NYSE:LW), were among the notable stocks that rebounded during the current week despite a broad sell-off.
Schlumberger Limited (NYSE:SLB) shares bounced back following a recovery in crude oil prices, while Take-Two Interactive Software, Inc. (NASDAQ:TTWO) shares gained value after receiving an upgrade. On the other hand, Lamb Weston Holdings, Inc. (NYSE:LW) shares jumped after smashing profit expectations for its fiscal first quarter.
Many other stocks, including DraftKings Inc. (NASDAQ:DKNG) and L3Harris Technologies, Inc. (NYSE:LHX), also made it to the list of 10 stocks that rebounded this week.
Photo by Austin Distel on Unsplash
10. Richardson Electronics, Ltd. (NASDAQ:RELL)
Number of Hedge Fund Holders: 6
Shares of Richardson Electronics, Ltd. (NASDAQ:RELL) rebounded this week after delivering impressive financial results for its fiscal first quarter. The electronic component distributor reported earnings of 45 cents per share, compared to 20 cents per share in the corresponding period of 2021.
In addition, Richardson Electronics, Ltd. (NASDAQ:RELL) posted revenue of $67.6 million, up 25.8 percent on a year-over-year basis. The results easily exceeded analysts’ average estimate of 24 cents per share for earnings and $62.40 million for revenue.
Richardson Electronics, Ltd. (NASDAQ:RELL) attributed the latest performance to sales gains across all business segments. Moving forward, the company expects a continuous improvement in its earnings and revenue throughout the rest of its fiscal year.
9. InterDigital, Inc. (NASDAQ:IDCC)
Number of Hedge Fund Holders: 12
Shares of InterDigital, Inc. (NASDAQ:IDCC) rebounded sharply earlier this week after the developer of digital wireless technology solutions raised its sales outlook for the third quarter.
InterDigital, Inc. (NASDAQ:IDCC) now expects to generate revenue in the range of $112 – $115 million for Q3, up from its previous guidance between $96 – $100 million. The updated outlook is also above the consensus of $98.83 million.
In addition, InterDigital, Inc. (NASDAQ:IDCC) projected operating costs between $88 – $90 million for the same period.
8. IDT Corporation (NYSE:IDT)
Number of Hedge Fund Holders: 14
IDT Corporation (NYSE:IDT) is next on the list of 10 stocks that rebounded this week. The stock has jumped nearly 17 percent since Monday, October 3. The surge is primarily attributed to its recent earnings. The telecommunications and payment company posted adjusted earnings of 70 cents per share for its fiscal fourth quarter, up from 66 cents per share in the year-ago period.
Revenue came in at $329 million, compared to $390 million in the same period last year. Among other updates, IDT Corporation (NYSE:IDT) reported that it repurchased $13.4 million worth of its common stock during Q4.
Discussing the results, CEO of IDT Corporation (NYSE:IDT), Shmuel Jonas, said in a statement:
“In the fourth quarter and for the full 2022 fiscal year, our high-margin, rapidly growing fintech and cloud communications businesses delivered impressive year-over-year and sequential results.”
7. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 27
Shares of DraftKings Inc. (NASDAQ:DKNG) advanced nearly nine percent this week. Most of that surge was driven by rumors that ESPN is about to ink a deal with DraftKings.
The potential partnership with DraftKings Inc. (NASDAQ:DKNG) will enable ESPN to strengthen its foothold in the legalized sports betting space. Nevertheless, the two companies haven’t responded to reports.
Like DraftKings Inc. (NASDAQ:DKNG), Schlumberger Limited (NYSE:SLB), Take-Two Interactive Software, Inc. (NASDAQ:TTWO) and Lamb Weston Holdings, Inc. (NYSE:LW) are also on the list of 10 stocks that rebounded this week.
6. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 34
Shares of L3Harris Technologies, Inc. (NYSE:LHX) bounced back this week after the defense contractor announced that it is acquiring Viasat Inc’s military communication segment in a transaction valued at $1.96 billion.
The acquisition will help L3Harris Technologies, Inc. (NYSE:LHX) enhance its cybersecurity and communication capabilities. The segment, named Link 16 Tactical Data Links, generates annual revenue of around $400 million.
The two companies expect the deal to close by the second of 2023. Discussing the move, CEO of L3Harris Technologies, Inc. (NYSE:LHX), Christopher E. Kubasik, said in a statement:
“Global national security requirements are increasing rapidly in this sector, and now we will be able to advance JADC2 and broaden our multi-function, multi-domain mission solutions through integration with Link 16.”
5. Vertiv Holdings Co (NYSE:VRT)
Number of Hedge Fund Holders: 34
Shares of Vertiv Holdings Co (NYSE:VRT) rose more than 12 percent this week. The surge came after the data center services provider disclosed the name of its upcoming chief executive officer.
Vertiv Holdings Co (NYSE:VRT) said its current Americas president Giordano Albertazzi will replace outgoing CEO Rob Johnson on January 1, 2023. The company added that Johnson is leaving due to his health issues.
Separately, asset management firm Baron Funds discussed Vertiv Holdings Co (NYSE:VRT) in its second-quarter 2022 investor letter, stating:
“Vertiv Holdings, LLC, a leading provider of critical infrastructure for data centers, fell in the quarter. The market became concerned that capital spending for data centers might be slowing along with the economy, which could be the case. If you recall, shares of Vertiv were very weak when the company reported first quarter costs were not properly passed through to their customers, so margins would fall well short of projections.
We believe that Vertiv is now ahead of the curve on this and will demonstrate robust earnings power in the back half of 2022 and into next year. We think it’s a very cheap stock, with strong management and board oversight, and remain hopeful that when the company reverts to form, the shares can appreciate significantly.”
4. Lamb Weston Holdings, Inc. (NYSE:LW)
Number of Hedge Fund Holders: 35
Lamb Weston Holdings, Inc. (NYSE:LW) shares rebounded this week after smashing profit expectations for its fiscal first quarter. The food processing company earned 75 cents per share on an adjusted basis, topping estimates of 49 cents.
Revenue for the quarter grew 14 percent on a year-over-year basis to $1.126 billion, nearly in line with the consensus. In addition, Lamb Weston Holdings, Inc. (NYSE:LW) reported that it repurchased $28 million worth of its common stock during the quarter.
For its fiscal 2023, Lamb Weston Holdings, Inc. (NYSE:LW) continues to expect adjusted earnings in the range of $2.45 – $2.85 per share, against analysts’ average estimate of $2.79 per share.
3. DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 56
DexCom, Inc. (NASDAQ:DXCM) is next on the list of 5 stocks that rebounded this week. The company’s shares rallied over 25 percent this week. The surge was primarily driven by the launch of DexCom’s continuous glucose monitor (CGM).
Earlier this week, DexCom, Inc. (NASDAQ:DXCM) rolled out the Dexcom G7 CGM in several European countries, including the U.K. and Germany. The company intends to launch the device in additional countries in the coming weeks.
Meanwhile, asset management firm Baron Funds also shared its views about DexCom, Inc. (NASDAQ:DXCM) in its second-quarter 2022 investor letter, stating:
“DexCom, Inc. is the leading provider of continuous glucose monitoring systems for patients with diabetes. The stock fell along with other premium valuation growth stocks, primarily on multiple contraction. Concern about price competition from Abbott Labs’ Libre product also played a role. Results for the first quarter were solid. Sales increased 22% organically, margins expanded 350 basis points, and the company maintained guidance for continued strong results.
An important new and revolutionary product, the G7, was approved and launched in Europe, and the company expects it to be approved in the U.S. soon. The product is 60% smaller, fully disposable, and designed for extended wear. We remain excited that CGM will become the standard of care for Type 1 diabetics and will be used extensively for Type 2 diabetics as well, which we think will be a major driver of continued sales and profit growth well into the future.”
2. Schlumberger Limited (NYSE:SLB)
Number of Hedge Fund Holders: 64
Shares of Schlumberger Limited (NYSE:SLB) climbed more than 20 percent this week following a recent recovery in crude oil prices. The stock has performed well this year, rising nearly 40 percent on a year-to-date basis.
Much of that gain is linked to a sharp spike in oil prices this year. Many expect Schlumberger Limited (NYSE:SLB) to continue its outperformance in the near term amid solid demand for oil and gas.
For instance, Piper Sandler expressed optimism about the growth prospects of Schlumberger Limited (NYSE:SLB), citing a long-term value in the energy sector. The research firm issued an “Overweight” rating and a price target of $50 per share for the stock on Friday, October 7.
1. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 66
Shares of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) rose nearly nine percent this week. The surge was partly driven by a recent upgrade from Goldman Sachs. The research firm improved its ratings for the video game publisher from “Neutral” to “Buy.”
Analyst Eric Sheridan believes short-term headwinds have been mirrored in the company’s shares. Sheridan also expects more normalized growth trends in the gaming industry from next year. He lifted his price target for Take-Two Interactive Software, Inc. (NASDAQ:TTWO) from $131 per share to $165 per share.
Meanwhile, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) also appeared in the second-quarter 2022 investor letter of investment management firm Madison Asset Management, LLC. Here’s what the firm said:
“Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a leading publisher of video games. Take-Two has a reputation for the high quality of its games, having published industry favorites such as Grand Theft Auto and NBA2K.
The video game industry itself has shed much of its boom-and-bust patterns to become a steadier, more predictable business with high barriers to entry, established title franchises, and high levels of recurring, in-game revenue streams. The company has been investing heavily to step up the number of new title launches over the next few years, a favorable set-up which we believe is not fully reflected in its stock price.”
You can also take a peek at 10 Best Energy Stocks To Buy and 13 Best Cybersecurity Stocks To Buy.
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Disclosure: None. 10 Stocks That Rebounded This Week is originally published on Insider Monkey.
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