In this article, we will take a look at the 10 trending stocks to watch on Monday.
U.S. stocks edged lower during the last trading day of October. As of 01:13 PM ET, S&P 500 was down 0.69 percent, Dow Jones Industrial Average was negative 0.39 percent and the Nasdaq Composite slipped 0.96 percent. On the other hand, the 10-year Treasury yield jumped back over 4 percent around the same time.
The drop in the key indices reflects investors’ fears surrounding another interest rate hike from the U.S. Federal Reserve later this week. The U.S. central bank is expected to increase rates by 75 basis points to curb inflation.
Meanwhile, smartphone giant Apple Inc. (NASDAQ:AAPL), construction-equipment behemoth Caterpillar Inc. (NYSE:CAT) and diversified industrial company Emerson Electric Co. (NYSE:EMR) made their way into the headlines this morning.
Apple Inc. shares inched down after multiple reports suggested that iPhone production could drop due to increasing coronavirus restrictions in China. On the other hand, Caterpillar Inc. came into the spotlight after receiving a downgrade from UBS, while Emerson Electric Co. was trending after posting better-than-expected earnings. Check out the remaining article to see some other trending stocks of the day.
Source:Pixabay
10. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 26
Shares of First Solar, Inc. (NASDAQ:FSLR) jumped nearly 10 percent in mid-day trading Monday after a couple of market research firms raised their price targets for the solar technology company.
Guggenheim analyst Joseph Osha lifted his price target for First Solar, Inc. from $200 to $233, citing its solid bookings activity. Separately, BofA analyst Julien Dumoulin-Smith also raised his ratings for First Solar stock from $13 to $165. Smith believes the recent pricing and demand trend will drive the company’s core earnings growth in the coming years.
The latest price-target revisions follow the company’s third-quarter results. While First Solar, Inc. missed profit and sales expectations for Q3, it reported strong net bookings for the quarter. First Solar, Inc. said that it secured record net bookings of 43.7 GWDC on a year-to-date basis, with deliveries stretching to 2027.
9. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 26
Shares of Wynn Resorts, Limited (NASDAQ:WYNN) jumped over seven percent this morning following the news that billionaire investor Tilman Fertitta now holds a 6.1 percent stake in the high-end hotels and casinos operator.
According to a regulatory filing, Fertitta bought 6,917,551 shares of Wynn Resorts, Limited. Fertitta is CEO of Fertitta Entertainment, which owns several luxury hotels and casinos, such as Bubba Gump Shrimp, Del Frisco, the Bubba Gump Shrimp and Golden Nugget Hotel & Casinos.
Wynn Resorts, Limited shares remained under pressure this year, primarily due to Covid-19 restrictions severely hurting its sales in Macao. The stock has lost about 30 percent of its value so far in 2022.
8. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Number of Hedge Fund Holders: 30
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is next on the list of 10 trending stocks to watch on Monday. The stock fell more than seven percent in pre-market trading today after receiving a downgrade from JPMorgan.
The research firm lowered its ratings for Petróleo Brasileiro S.A. – Petrobras from “Overweight” to “Neutral,” citing leadership change in Brazil. Analyst Rodolfo Angele believes the new administration may call for a change in the company’s strategic directions. He also trimmed his price target for Petróleo Brasileiro S.A. – Petrobras from $20 per share to $14 per share.
Besides Petróleo Brasileiro S.A. – Petrobras, Apple Inc., Caterpillar Inc. and Emerson Electric Co. were also among the top trending stocks of the day.
7. Public Service Enterprise Group Incorporated (NYSE:PEG)
Number of Hedge Fund Holders: 31
Public Service Enterprise Group Incorporated (NYSE:PEG) came into the spotlight on Monday after releasing its financial results for the third quarter. The diversified energy company reported adjusted earnings of 86 cents per share, compared to 98 cents per share in the corresponding period of the prior year.
In addition, Public Service Enterprise Group Incorporated posted revenue of $2.27 billion, up 19.4 percent on a year-over-year basis. The results exceeded the consensus of 82 cents per share for earnings and $2.04 billion for revenue.
Meanwhile, Public Service Enterprise Group Incorporated narrowed its full-year adjusted earnings guidance to a range of $3.40 – $3.50 per share, from its previous forecast between $3.35 – $3.55 per share.
6. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 39
Shares of ON Semiconductor Corporation (NASDAQ:ON) slid more than six percent in mid-day trading Monday despite beating financial expectations for the third quarter. The semiconductor supplier earned $1.45 per share on an adjusted basis, significantly higher than 87 cents per share in the year-ago period.
Revenue for the quarter climbed 26 percent versus last year to $2.19 billion. Analysts expected ON Semiconductor Corporation to earn $1.32 per share on revenue of $2.12 billion.
For the current quarter, ON Semiconductor Corporation guided for adjusted earnings in the range of $1.18 – $1.34 per share and revenue between $2.01 – $2.14 billion.
Speaking on the results, CEO of ON Semiconductor Corporation, Hassane El-Khoury, said in a statement:
“We have taken a proactive and deliberate approach over the last several quarters to make the structural changes required to strengthen our business, and we are in a better position than ever to navigate the current uncertainty in the market.”
5. Paramount Global (NASDAQ:PARA)
Number of Hedge Fund Holders: 42
Shares of Paramount Global (NASDAQ:PARA) hit a new 52-week low of $17.91 in the mid-day trading session on Monday. The drop came after Wells Fargo analyst Steven Cahall downgraded the mass media company from “Equal-Weight” to “Underweight.”
Cahall pointed towards uncertain direct-to-consumer guidance and risk to the company’s ad sales. He also trimmed his price target for Paramount Global from $19 per share to $13 per share, citing a tougher period for linear media services in the near future.
Paramount Global shares are now down about 43 percent on a year-to-date basis, including the latest drop.
4. Emerson Electric Co. (NYSE:EMR)
Number of Hedge Fund Holders: 45
Emerson Electric Co. caught investors’ attention this morning after announcing better-than-expected financial results for its fiscal fourth quarter. The diversified industrial company reported adjusted earnings of $1.53 per share, topping estimates of $1.38 per share.
Revenue for the quarter rose 8 percent on a year-over-year basis to $5.4 billion, ahead of the consensus of $5.33 billion. Emerson Electric Co. also released its region-wise sales performance. Revenue from the Americas jumped 17 percent, Europe sales increased 3 percent and China sales rose 9 percent in the quarter. In comparison, sales from Asia, Middle East & Africa increased 7 percent.
Among other updates, Emerson Electric Co. said it is selling controlling stakes in its climate-technologies division to Blackstone Inc in a transaction valued at $14 billion.
3. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 45
Shares of Caterpillar Inc. slightly moved down on Monday morning after UBS analyst Steven Fisher cut his ratings for the construction equipment maker from “Buy” to “Neutral.”
Fisher believes the company’s valuation offers a more balanced risk/reward at the moment. On the positive side, he increased his price target for Caterpillar Inc. from $225 per share to $230 per share.
The latest coverage came just days after Caterpillar Inc. surpassed profit and sales expectations for the third quarter. The Illinois-based company reported adjusted earnings of $3.95 per share on revenue of $15 billion for the period.
Speaking on the results, CEO Jim Umpleby said:
“I’d like to thank our global Caterpillar team for delivering another quarter of double-digit top-line growth and record adjusted profit per share. Our team remains focused on serving our customers as we continued to see healthy demand across most of our end markets during the third quarter.”
2. Global Payments Inc. (NYSE:GPN)
Number of Hedge Fund Holders: 57
Shares of Global Payments Inc. (NYSE:GPN) plummeted more than seven percent after the opening bell today. The drop came after the financial technology company delivered mixed results for the third quarter.
Global Payments Inc. earned $2.48 per share on an adjusted basis, up from $2.18 per share in the year-ago period but marginally below the consensus of $2.49 per share. On the bright side, adjusted revenue for the quarter increased 3 percent on a year-over-year basis to $2.06 billion, beating the expectations of $2.04 billion.
Looking forward, Global Payments Inc. continues to expect adjusted earnings in the range of $9.53 – $9.75 per share and adjusted revenue growth between 10 – 11 percent for fiscal 2022.
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 128
Apple Inc. made its way into the headlines today after multiple reports suggested that iPhone production could take a hit due to increasing coronavirus restrictions in China.
One of the reports stated that iPhone production could drop by up to 30 percent at Foxconn’s biggest iPhone manufacturing plant located in Zhengzhou. Apple Inc. shares slipped nearly two percent following the news.
Apple Inc. largely relies on Foxconn for producing iPhones. Meanwhile, Foxconn is reportedly planning to increase iPhone production at its Shenzhen facility to make up for the shortfall at Zhengzhou plant.
Separately, investment management firm Wedgewood Partners discussed Apple Inc. in its Q3 2022 investor letter, stating:
“Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”
You can also take a peek at 10 Best Dividend Stocks for Growth and 12 Best Consumer Staple Stocks.
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This article is originally published at Insider Monkey.
