10 Trending Stocks on Tuesday

In this article, we will take a look at the 10 trending stocks on Tuesday.

U.S. stock futures rose on Tuesday. The surge came after a smaller-than-expected rise in the producer price index for the month of October. The index inched up 0.2 percent during the last month versus the consensus forecast calling for a 0.4 percent rise. The report indicates a slight decline in inflation during the last month, raising hopes that the Fed might change the pace of its rate hikes in the near future.

Meanwhile, Walmart Inc. (NYSE:WMT), The Home Depot, Inc. (NYSE:HD) and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) made their way into the headlines this morning.

Walmart Inc. and The Home Depot, Inc. were trending after releasing their earnings reports. On the other hand, Taiwan Semiconductor Manufacturing Company Limited caught investors’ attention following the news that Berkshire Hathaway has acquired about $4 billion worth of stock in the semiconductor company.

In addition, video-streaming giant Netflix, Inc. (NASDAQ:NFLX) and e-commerce behemoth Amazon.com, Inc. (NASDAQ:AMZN) were also on the list of 10 trending stocks on Tuesday. Check out the complete article to see why these stocks came into the limelight.

10. Tencent Music Entertainment Group (NYSE:TME)

Number of Hedge Fund Holders: 14

Shares of Tencent Music Entertainment Group (NYSE:TME) climbed to a nearly nine-month high after the opening bell today. The surge was driven by the company’s earnings beat for the third quarter.

Tencent Music Entertainment Group reported adjusted earnings of 12 cents per share, topping expectations of 7 cents. Moreover, paying users jumped for the quarter 19.8 percent on a year-over-year basis to 85.3 million.

On the downside, Tencent Music Entertainment Group missed sales expectations for the quarter due to the weak performance of its social entertainment segment. The Chinese music entertainment giant produced revenue of $1.04 billion, up 5.6 percent versus last year but below analysts’ average estimate of $1.23 billion.

Tencent Music Entertainment Group also released its segment-wise sales results. Revenue from its online music services jumped 18.8 percent to $482 million, while revenue from its social entertainment services fell 20 percent to $553 million in the quarter.

9. Shoals Technologies Group, Inc. (NASDAQ:SHLS)

Number of Hedge Fund Holders: 23

Shares of Shoals Technologies Group, Inc. (NASDAQ:SHLS) soared more than 30 percent this morning after beating financial expectations for the third quarter and lifting its outlook for the full year.

Shoals Technologies Group, Inc. earned 10 cents per share on an adjusted basis, up from 7 cents per share in the year-ago period and above expectations of 8 cents per share. Revenue for the quarter climbed 52 percent on a year-over-year basis to $90.8 million, beating estimates of $83.07 million

For fiscal 2022, Shoals Technologies Group, Inc. now expects adjusted earnings in the range of $48 – $53 million and revenue between $310 – $325 million. Previously, it was looking to post adjusted earnings of $45 – $53 million and revenue of $300 – $325 million.

8. Berry Global Group, Inc. (NYSE:BERY)

Number of Hedge Fund Holders: 37

Berry Global Group, Inc. (NYSE:BERY) is next on the list of 10 trending stocks on Tuesday. The plastic packaging company came into focus after releasing the financial results for its fiscal fourth quarter.

The Indiana-based company reported adjusted earnings of $2.19 per share, while analysts were looking for $2.13 per share. In addition, Berry Global Group, Inc. posted revenue of $3.42 billion, down 6.7 percent on a year-over-year basis and below expectations of $3.63 billion.

Looking forward, Berry Global Group, Inc. guided for adjusted earnings in the range of $7.30 – $7.80 per share. The outlook compares to analysts’ average estimate for earnings of $7.80 per share.

7. The Estée Lauder Companies Inc. (NYSE:EL)

Number of Hedge Fund Holders: 46

Investors are closely watching The Estée Lauder Companies Inc. (NYSE:EL) today after multiple reports suggested that the New York-based cosmetics giant is nearing an agreement to acquire Tom Ford.

The deal will reportedly include eyewear and apparel segments of Tom Ford. The Estée Lauder Companies Inc. could pay up to $2.8 billion for the transaction, making it its biggest deal ever.

Shares of The Estée Lauder Companies Inc. rose nearly three percent on Tuesday morning following the reports.

Besides The Estée Lauder Companies Inc., Walmart Inc., The Home Depot, Inc. and Taiwan Semiconductor Manufacturing Company Limited, were also trending on Tuesday.

6. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 65

Shares of Sea Limited (NYSE:SE) skyrocketed over 30 percent this morning after posting a narrower-than-expected loss for the third quarter. The Singapore-based consumer Internet company reported a loss of 66 cents per share, compared to a loss of 84 cents per share in the year-ago period.

In addition, Sea Limited posted revenue of $3.2 billion, representing a jump of 17.4 percent over the same period of 2021. The results were better than analysts’ average estimate for a loss of $1.09 per share on revenue of $3 billion.

Sea Limited was able to surpass expectations primarily due to its cost-cutting efforts. The company slashed around 7,000 jobs over the past six months to steer through an uncertain economic environment. Meanwhile, it also shut down operations in certain countries to make up for the slow growth.

5. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 67

Walmart Inc. shares jumped more than seven percent this morning after smashing financial expectations for its fiscal third quarter.

The retail giant reported adjusted earnings of $1.50 per share, easily beating estimates of $1.32 per share. Revenue for the quarter rose 8.7 percent versus last year to $152.8 billion, while analysts expected Walmart Inc. to generate revenue of $147.7 billion. Same-store sales also rose 8.2 percent on a year-over-year basis, topping expectations of 4.3 percent.

Looking forward, Walmart Inc. improved its operating income guidance for the full year. The company expects its adjusted earnings to drop in the range of 6 – 7 percent versus its previous outlook calling for a decline between 9 – 11 percent.

4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 72

Shares of Taiwan Semiconductor Manufacturing Company Limited jumped nearly 13 percent in pre-market trading Tuesday. The surge followed the news that Berkshire Hathaway has acquired about $4 billion worth of stock in TSM.

Berkshire Hathaway, run by billionaire investor Warren Buffett, made the purchases during the third quarter, according to a recent filing. Taiwan Semiconductor Manufacturing Company Limited shares have lost about 40 percent so far in 2022. However, the latest disclosure by Berkshire has sent the stock to a nearly two-month high.

Separately, investment management firm Baron Funds also briefly talked about Taiwan Semiconductor Manufacturing Company Limited in its third-quarter 2022 investor letter. Here’s what the firm said:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance due to the global macroeconomic slowdown and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”

3. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 80

The Home Depot, Inc. came into the limelight today after releasing financial results for its fiscal third quarter. The home improvement retailer reported earnings of $4.24 per share, up from $3.92 per share in the same period last year.

Revenue came in at $38.9 billion, representing a rise of 5.6 percent over the year-ago period. Analysts expected The Home Depot, Inc. to earn $4.12 per share on revenue of $38 billion. Meanwhile, same-store sales increased 4.3 percent, above expectations of 3.1 percent.

The Home Depot, Inc. also reiterated its financial outlook for 2022. It continues to expect comparable sales growth of about 3 percent and EPS growth in the mid-single digits.

2. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 95

Shares of Netflix, Inc. rose nearly three percent after the opening bell on Tuesday after receiving an upgrade from BofA. The research firm issued a “Buy” rating for the video-streaming giant with a price target of $370 per share.

BofA analyst Jessica Reif Ehrlich believes Netflix, Inc. holds a dominant position in the video-streaming market and has a strong potential to grow its subscriber base in overseas markets. In addition, Ehrlich acknowledged the company’s efforts to enhance monetization through a value-oriented ad-supported tier and policy changes surrounding password sharing.

Earlier this month, Netflix, Inc. rolled out its basic ad-supported plan that carries a price tag of $6.99 a month. The latest tier includes 4 – 5 minutes of advertisements per hour.

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 95

Shares of Amazon.com, Inc. slightly moved up this morning after receiving an upgrade from MoffettNathanson. The research firm issued an “Outperform” rating for the e-commerce giant and a price target of $118 per share.

MoffettNathanson analyst Michael Morton expressed optimism around e-commerce penetration growth. He thinks giants like Amazon.com, Inc. will continue to capture market share, given their convenience and price options.

Separately, multiple reports suggest that Amazon.com, Inc. is planning to cut 10,000 jobs, primarily across corporate and technology units, due to macro uncertainty. The reports came just days after social media giant Meta Platforms decided to trim 11,000 employees to save costs.

You can also take a peek at Top 10 High Dividend Stocks To Buy Now and 12 Best Consumer Staple Stocks.

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This article is originally published at Insider Monkey.