In this article, we will take a look at the 10 stocks gaining value on Friday.
U.S. stocks edged higher this morning, partly lifted by gains made by banking giants, including JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC) and Citigroup Inc. (NYSE:C).
However, all three key U.S. indices slipped back into negative territory by Friday afternoon. As of 12:23 PM ET, S&P 500 was negative 1.86 percent, Dow Jones Industrial Average was down 0.97 percent and Nasdaq Composite fell 2.35 percent.
Some analysts are linking the drop to Commerce Department’s latest data showing U.S. retail sales for September remained nearly unchanged versus the prior month. The data also suggests that U.S. households were reluctant to spend on non-essential items due to record inflation.
Meanwhile, financial stocks, including JPMorgan Chase & Co., Wells Fargo & Company and Citigroup Inc., officially kicked off the Q3 earnings season this morning. While their Q3 net income dropped versus last year, it was better than the consensus forecast. As a result, their shares rose after the opening bell today.
In addition, Delta Air Lines, Inc. (NYSE:DAL) and UnitedHealth Group Incorporated (NYSE:UNH) also gained value on Friday morning after posting their quarterly results.
10. Washington Federal, Inc. (NASDAQ:WAFD)
Number of Hedge Fund Holders: 16
Shares of Washington Federal, Inc. (NASDAQ:WAFD) jumped more than five percent this morning after the Seattle-based bank surpassed profit expectations for its fiscal fourth quarter.
Washington Federal, Inc. reported earnings of $1.07 per share for the three months ended September 30, up from 72 cents per share in the comparable period last year. Analysts, on average, were looking for earnings of 91 cents per share.
The latest results were partly driven by the bank’s net interest income, which jumped 17.7 percent to $595 million in the quarter. Among other key updates, Washington Federal, Inc. reported that its total assets stood at $20.8 billion at the end of its fiscal Q4 versus $19.7 billion in the year-ago period. Moreover, total customer deposits also rose 3.1 percent on a year-over-year basis to $16 billion in the quarter.
9. The Howard Hughes Corporation (NYSE:HHC)
Number of Hedge Fund Holders: 24
Shares of The Howard Hughes Corporation (NYSE:HHC) advanced over four percent in mid-day trading Friday after hedge fund Pershing Square Capital Management opened a cash tender proposal to acquire 6.34 million shares of the real estate developer’s common stock.
Pershing Square, backed by billionaire investor Bill Ackman, intends to buy the shares at a price ranging from $52.25 to $60 apiece. The hedge fund is already the biggest shareholder of The Howard Hughes Corporation.
Meanwhile, Pershing Square also shared its detailed views about The Howard Hughes Corporation in its second-quarter 2022 investor letter. Here’s what the hedge fund said:
“The Howard Hughes Corporation (NYSE:HHC)’s portfolio of well-located residential land and income-producing commercial assets continues to demonstrate resilient performance despite recent macro concerns of a slowdown in the housing market. The company’s advantaged business model of owning master planned communities (“MPCs”) provides HHC substantial control over the planning and release of land for sale and development, enabling it to take a long-term approach….” (Click here to read the full text)
8. Nutanix, Inc. (NASDAQ:NTNX)
Number of Hedge Fund Holders: 26
Shares of Nutanix, Inc. (NASDAQ:NTNX) climbed to a nearly five-month high this morning following rumors that the Delaware-based cloud computing company is seeking a buyout proposal. The company reportedly intends to sell itself to either a sector peer or a private-equity firm, according to reports.
Cloud computing firms, including Nutanix, Inc., benefited from robust demand for their products and services during the pandemic. At one point in 2021, the stock was trading around $40, compared to its closing price of $21.15 in the previous trading session.
However, Nutanix, Inc. shares have lost significant value this year due to a broad sell-off in the tech sector. As of yesterday, the stock was down about 30 percent on a year-to-date basis.
Besides Nutanix, Inc., shares of JPMorgan Chase & Co., Wells Fargo & Company and Citigroup Inc. also gained value this morning.
7. QuidelOrtho Corporation (NASDAQ:QDEL)
Number of Hedge Fund Holders: 37
Shares of QuidelOrtho Corporation (NASDAQ:QDEL) slightly moved up in mid-day trading Friday after UBS analyst Elizabeth Garcia improved her ratings for the healthcare products maker from “Sell” to “Neural.”
Garcia was primarily moved by the company’s preliminary results for the third quarter. QuidelOrtho Corporation recently projected sales growth in the range of $782 – $785 million for Q3, significantly higher than analysts’ average estimate of $650.09 million.
QuidelOrtho Corporation expects Covid-19 product revenue of about $171 million and non-Covid-19 product revenue between $611 – $614 million.
6. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 43
Shares of U.S. Bancorp (NYSE:USB) edged higher after the opening bell today. The surge came after the Minnesota-based bank holding company delivered third-quarter results above expectations.
U.S. Bancorp reported earnings of $1.16 per share, compared to $1.30 per share in the year-ago period. Revenue came in at $6.33 billion, from $5.89 billion in the third quarter of 2021.
The results exceeded the consensus of $1.14 per share for earnings and $6.24 billion for revenue. U.S. Bancorp benefitted from its net interest income, which increased to $3.86 billion in the quarter, from $3.17 billion in the year-ago period.
Among other updates, U.S. Bancorp reported that its average total deposits for Q3 increased 5.9 percent on a year-over-year basis to $25.3 billion. Moreover, average total loans jumped 13.5 percent to $40 billion in the quarter.
5. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 49
Shares of Delta Air Lines, Inc. rose over three percent in pre-market trading Friday after receiving an upgrade from Cowen. The research firm lifted its ratings for the Georgia-based airline from “Market Perform” to “Outperform,” citing a solid Q4 outlook.
The upgrade came a day after Delta Air Lines, Inc. issued upbeat guidance for the current quarter amid robust demand. The company now expects adjusted earnings of $1 – $1.25 per share versus the consensus of 79 cents. Moreover, revenue for the same period is expected grow in the range of 5 – 9 percent over the comparable quarter of 2019.
Delta Air Lines, Inc. released the outlook along with its third-quarter results. The airline reported adjusted earnings of $1.51 per share on revenue of $12.84 billion. The results were marginally below the consensus of $1.53 per share for earnings and $12.9 billion for revenue.
4. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 82
Shares of Citigroup Inc. inched higher this morning after surpassing profit and sales expectations for the third quarter. The New York-based bank reported earnings of $1.63 per share, beating estimates of $1.42 per share.
In addition, Citigroup Inc. posted revenue of $18.5 billion, compared to $17.4 billion in the same period of 2021. On the other hand, analysts were looking for revenue of $18.3 billion.
Discussing the results, CEO of Citigroup Inc., Jane Fraser, said in a statement:
“We are intensely focused on supporting our clients and executing our strategy. We have made good progress on many of the core business drivers we laid out at Investor Day, despite the complex macro environment. Treasury and Trade Solutions saw revenues up 40% year-over-year, with growth across all segments, and Securities Services was up 15%. In Fixed Income, we matched last year’s showing through our strength in FX, while Equities came in lower than last year. Banking was the business most adversely impacted by the macro environment with reduced deal flows and a lower appetite for M&A. While the backdrop for wealth management was difficult, our revenues were up outside of Asia. U.S. Personal Banking further solidified its growth trajectory with double digit revenue growth in both of our cards businesses.”
3. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 83
Shares of Wells Fargo & Company slightly moved up before the opening bell today. The surge came despite the banking giant’s mixed financial results for the third quarter.
Wells Fargo & Company reported earnings of 85 cents per share, well below $1.17 per share in the year-ago period. Revenue increased to $19.5 billion, from $18.83 billion in the corresponding period of 2021. Analysts were looking for earnings of $1.09 per share on revenue of $18.77 billion.
Among other updates, Wells Fargo & Company said its net interest income climbed 36 percent on a year-over-year basis, driven by elevated interest rates and higher loan balances.
2. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 91
Shares of UnitedHealth Group Incorporated inched up one percent in pre-market trading Friday after beating financial expectations for the third quarter and lifting its outlook for the full year.
UnitedHealth Group Incorporated earned $5.79 per share on an adjusted basis, topping estimates of $5.42 per share. Revenue for the quarter advanced 12 percent versus last year to $80.9 billion, surpassing expectations of $80.5 billion.
Looking forward, UnitedHealth Group Incorporated also raised its full-year adjusted earnings outlook to a range of $21.85 – $22.05 per share, from its previous guidance between $21.40 – $21.90 per share.
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 104
Shares of JPMorgan Chase & Co. rose over three percent after the opening bell today. The surge was driven by the bank’s better-than-expected results for the third quarter.
JPMorgan Chase & Co. reported earnings of $3.12 per share, down from $3.74 per share in the year-ago period but above the consensus of $2.90 per share. Revenue for the quarter rose 10 percent versus last year to $33.49 billion, beating expectations of $32.1 billion. The results were mainly helped by its net interest income, which soared 34 percent to $17.6 billion in the quarter.
In addition, JPMorgan Chase & Co. also released its segment-wise sales results. Its consumer & community banking revenue jumped 14 percent to $14.3 billion, commercial banking revenue climbed 21 percent to $3 billion and asset & wealth management revenue rose 6 percent to $4.5 billion in the quarter. On the downside, corporate & investment bank revenue slipped 4 percent to $11.9 billion.
You can also take a peek at 11 Best Cyclical Stocks To Buy and 13 Best Cybersecurity Stocks To Buy.
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