In this article, we will take a look at the 10 trending stocks to watch today.
U.S. stocks edged higher on Monday, with all three key indices in green as of 01:20 PM ET. On the other hand, the 10-year Treasury dropped back to 4.20 percent in mid-day trading after hitting a high of 4.28 percent this morning.
Meanwhile, Chinese stocks, including Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD) and NIO Inc. (NYSE:NIO), fell sharply today after Chinese President Xi Jinping was named party chief for a third term. The latest selloff was apparently driven by investors’ concerns related to Xi’s tightening policies around China’s tech sector.
Besides Alibaba Group Holding Limited, shares of Tesla, Inc. (NASDAQ:TSLA) and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also dropped this morning.
Tesla, Inc. shares fell after the company lowered the prices of some models in China. On the other hand, Taiwan Semiconductor Manufacturing Company Limited shares slid after the semiconductor giant reportedly stopped shipping advanced silicon to Chinese intelligent chip design firm Biren Technology.
In addition, Meta Platforms, Inc. (NASDAQ:META) and AT&T Inc. (NYSE:T) also made their way into the headlines this morning. Check out the remaining article to see why these stocks are trending on Monday.
10. HNI Corporation (NYSE:HNI)
Number of Hedge Fund Holders: 10
HNI Corporation (NYSE:HNI) caught investors’ attention this morning after releasing financial results for the third quarter. The office furniture manufacturer reported adjusted earnings of 71 cents per share, up from 43 cents per share in the year-ago period.
In addition, HNI Corporation posted revenue of $598.8 million, up 2.1 percent on a year-over-year basis. Analysts were looking for earnings of 64 cents per share on revenue of $642.29 million.
Looking forward, HNI Corporation expects its fourth-quarter adjusted profit to drop on a sequential basis. However, it expects the numbers to come slightly higher than the comparable period of 2021.
9. Myovant Sciences Ltd. (NYSE:MYOV)
Number of Hedge Fund Holders: 10
Myovant Sciences Ltd. (NYSE:MYOV) is next on the list of 10 trending stocks to watch today. The biopharmaceutical company’s shares climbed to a new high this morning after Japan-based Sumitomo Pharma improved its offer to buy the remaining shares of Myovant.
Sumitomo already holds nearly 52 percent stakes in Myovant Sciences Ltd.. It has now lifted its bid to $27 per share to buy the remaining shares. The offer represents a decent improvement from its previous bid of $22.75 per share, which was refused by Myovant earlier this month.
Goldman Sachs Group is offering advisory services to Myovant Sciences Ltd. on the deal. The two companies expect the transaction to close in the first quarter of 2023.
8. Dorman Products, Inc. (NASDAQ:DORM)
Number of Hedge Fund Holders: 15
Shares of Dorman Products, Inc. (NASDAQ:DORM) turned red before the opening bell today after the aftermarket automotive parts supplier posted mixed Q3 results and cut its profit outlook for the full year.
Dorman Products, Inc. earned $1.17 per share on an adjusted basis, missing the consensus of $1.21 per share. On the bright side, revenue for the quarter rose 19 percent versus last year to $413.5 million, surpassing expectations of $407.54 million.
For fiscal 2022, Dorman Products, Inc. lowered its adjusted earnings guidance to a range of $4.70 – $4.90 per share, from its earlier forecast of $5 – $5.20 per share. The revised outlook also missed the expectations of $5.12 per share.
7. Kirby Corporation (NYSE:KEX)
Number of Hedge Fund Holders: 23
Shares of Kirby Corporation (NYSE:KEX) rose nearly three percent in pre-market trading Monday after announcing better-than-expected financial results for the third quarter. The marine transportation services provider reported earnings of 65 cents per share, contrary to a loss of $4.41 per share in the year-ago period.
Revenue for the quarter jumped 25 percent on a year-over-year basis to $745.8 million. Analysts expected Kirby Corporation to earn 59 cents per share on revenue of $725.8 million.
Kirby Corporation also released its segment-wise sales performance. Its marine transportation revenue increased to $433 million, from $338.5 million in the year-ago quarter. In comparison, its distribution and services revenue came in at $312.8 million, up from 260.4 million in the corresponding period of 2021.
Like Kirby Corporation, Alibaba Group Holding Limited, Tesla, Inc., Taiwan Semiconductor Manufacturing Company Limited are also on the list of 10 trending stocks to watch today.
6. Vista Outdoor Inc. (NYSE:VSTO)
Number of Hedge Fund Holders: 25
Vista Outdoor Inc. (NYSE:VSTO) made its way into the headlines this morning after announcing the departure of its CFO Sudhanshu Priyadarshi and releasing preliminary results for its fiscal second quarter.
The outdoor sports products manufacturer reported that Priyadarshi would exit the company next month to pursue his career elsewhere. However, he will continue to fulfil his duties until his departure. Vista Outdoor Inc. named Andrew Keegan as its interim CFO. Keegan is currently working as a vice president of finance and treasury at the company.
Vista Outdoor Inc. also announced the preliminary results for its fiscal second quarter. It expects adjusted earnings of $1.71 per share on revenue of about $782 million. This compares to the consensus of $1.76 per share for earnings and $755 million for revenue.
5. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 55
Shares of AT&T Inc. rose over two percent on Monday morning after Raymond James upgraded the telecommunications giant from “Outperform” to “Strong Buy.” The research firm sees AT&T outperforming Verizon in the coming months.
Raymond James’ coverage came just days after AT&T Inc. posted better-than-expected profit for the third quarter and lifted its outlook for the full year. The results were driven by price hikes and global travel recovery during the quarter.
AT&T Inc. reported adjusted earnings of 68 cents per share, topping expectations of 61 cents. The quarterly revenue of $30 billion also exceeded the consensus of $29.85 billion.
For the full year, AT&T Inc. expects adjusted earnings of $2.50 per share or higher, compared to its previous projection between $2.42 – $2.46 per share.
Separately, asset management firm Chartwell Investment Partners briefly discussed AT&T Inc. in its second-quarter 2022 investor letter, stating:
“In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Shares of Tesla, Inc. fell to a new 52-week low this morning after the electric vehicle (EV) giant lowered the prices of some models in China.
Tesla, Inc. decreased the initial price of Model 3 sedan to 265,900 yuan, from its previous price of 279,900 yuan. Moreover, its Model Y SUV will now carry a price tag of 288,900 yuan, versus its earlier selling price of 316,900 yuan.
Some industry experts are attributing the latest move to intensifying competition in China. Tesla, Inc. is reportedly facing increasing competition from local players, such as BYD and Xpeng, in the world’s largest automotive market.
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited is next on the list of 5 trending stocks to watch today. TSM stock plunged to a new 52-week low this morning following reports that the company has stopped shipping advanced silicon to Chinese intelligent chip design firm Biren Technology.
The reports suggest that Taiwan Semiconductor Manufacturing Company Limited wants to abide by recent U.S. regulations preventing exports of advanced chip technology to China.
Meanwhile, a separate report from Wall Street indicates that Taiwan Semiconductor Manufacturing Company Limited might plan to build a manufacturing facility in Japan amid rising tensions between Washington and Beijing.
2. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 106
Shares of Alibaba Group Holding Limited plummeted to a nearly seven-year low on Monday morning. The drop came a day after Chinese President Xi Jinping was named party chief for a third term.
Besides Alibaba Group Holding Limited, shares of NIO, JD.com and XPeng also dropped this morning. The latest selloff shows investors’ concerns related to Xi’s tightening policies around the Chinese tech sector.
Meanwhile, Xi’s zero-Covid strategy has also hampered the growth of several Chinese companies, including Alibaba Group Holding Limited. Shares of Alibaba have already lost about 50 percent of their value so far in 2022.
Separately, investment management firm Mawer Investment Management also mentioned Alibaba Group Holding Limited in its third-quarter 2022 investor letter, stating:
“Other companies that have seen declines include those that have been impacted by macroeconomic uncertainty in China. Both Alibaba (NYSE:BABA) and Tencent (OTCPK:TCEHY) have reported results that are negative fundamentally, and while both have been under pressure from new competition, the recent results are also a reflection of the economic state in China.”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. came into the spotlight this morning after BofA lowered its ratings for the social network giant from “Buy” to “Neutral,” citing weak sales growth for Q4 and fiscal 2023. The research firm also slashed its price target for META stock from $196 per share to $150 per share.
The downgrade came just before the company’s Q3 results. Meta Platforms, Inc. is scheduled to report its third-quarter profit and sales after the closing bell on Wednesday.
Meanwhile, investment firm Altimeter Capital Management urged Meta Platforms, Inc. to trim jobs and reduce capital costs. The technology-focused hedge fund gave these suggestions in an open letter to CEO Mark Zuckerberg.
You can also take a peek at Long-Term Stock Portfolio: Best Tech Stocks and 13 Best Cybersecurity Stocks To Buy.
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This article is originally published at Insider Monkey.
