In this article, we will take a look at the top 10 stocks to watch today.
Electric vehicle giant Tesla, Inc. (NASDAQ:TSLA), wind and solar energy producer NextEra Energy, Inc. (NYSE:NEE) and healthcare behemoth CVS Health Corporation (NYSE:CVS) made their way into the headlines on Tuesday morning.
Tesla, Inc. (NASDAQ:TSLA) was trending on reports that it is trying to cut the cost of batteries using dry-coating technology. On the other hand, CVS Health Corporation (NYSE:CVS) came into the spotlight after it decided to acquire Signify Health for roughly $8 billion.
Many other stocks, including FedEx Corporation (NYSE:FDX) and Bed Bath & Beyond Inc. (NASDAQ:BBBY), also caught investors’ attention this morning. See the complete article to find why these companies are trending today.
10. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 14
Tilray Brands, Inc. (NASDAQ:TLRY) is first on the list of top 10 stocks to watch today. The company stated in a press release this morning that it has commenced discussions with German regulators regarding the legalization of cannabis in the country.
Tilray Brands, Inc. (NASDAQ:TLRY) added that Germany’s narcotic drugs commissioner Burkhard Blienert laid out the strategy surrounding cannabis legalization in a recent meeting. Blienert also reaffirmed the government’s intention to present the first draft of the bill in the coming months.
Referring to the discussions, Tilray Brands, Inc. (NASDAQ:TLRY) said it would assist government regulators in the legalization process by sharing its years-long experience in cannabis research.
Chief strategy officer of Tilray Brands, Inc. (NASDAQ:TLRY), Denise Faltischek, said in a statement:
“Tilray Brands has unmatched experience partnering with governments and regulators to help develop responsible cannabis regulations that protect the health and safety of patients and consumers, as well as, supporting significant economic growth in countries in which it operates. We applaud the German government in leading responsible adult-use cannabis legislation in Europe and we are proud to support this effort.”
9. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 14
Bed Bath & Beyond Inc. (NASDAQ:BBBY) once again came into the spotlight today after its CFO Gustavo Arnal’s death was declared a suicide. The company’s shares dropped over 13 percent this morning following the news.
Arnal recently died after falling from the 18th story of a residential skyscraper located in Manhattan. The death came just a few days after Bed Bath & Beyond Inc. (NASDAQ:BBBY) disclosed its turnaround strategy, which included store closures, job cuts and new financing.
Moving forward, Bed Bath & Beyond Inc. (NASDAQ:BBBY) now faces even bigger challenges surrounding its senior management. The company is already searching for a new CEO following the departure of Mark Tritton in June. Moreover, its chief operating officer is also leaving the company.
8. Rollins, Inc. (NYSE:ROL)
Number of Hedge Fund Holders: 27
Shares of Rollins, Inc. (NYSE:ROL) advanced over six percent this morning after RBC Capital improved its ratings for the consumer and commercial services company from “Sector Perform” to “Outperform”
RBC Capital analyst Ashish Sabadra thinks Rollins, Inc. (NYSE:ROL) has a recession-resilient model. He believes the aggressive pricing and a strong advertising push will drive the company’s revenue growth.
Last month, asset management company Baron Funds also discussed Rollins, Inc. (NYSE:ROL) in its second-quarter 2022 investor letter. Here’s what the firm said:
“Rollins, Inc. (NYSE:ROL), which provides pest and termite control services for residential and commercial customers, contributed to performance. The company reported solid quarterly earnings and continued its consistent execution despite macroeconomic uncertainties. We believe Rollins has a strong brand and leading market share within in an attractive and defensive end market. The company has historically raised its prices to offset growth in its operating expenses. We expect that Rollins should be able to continue compounding its revenues, earnings, and free cash flow for many years.”
7. Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Holders: 44
Shares of Illumina, Inc. (NASDAQ:ILMN) rose over 5 percent this morning after the company said it would appeal the European Commission’s (EC) latest verdict that barred Illumina from buying biotechnology start-up Grail.
European regulators on Tuesday blocked the deal, saying the acquisition could give Illumina, Inc. (NASDAQ:ILMN) a big edge over rivals, besides hampering the ability of its competitors to develop their own cancer detection tests.
The latest ruling came nearly a year after Illumina, Inc. (NASDAQ:ILMN) proceeded with Grail acquisition without the consent of European Union (EU). Back then, the EU ordered the two companies to function independently until the final decision was made.
Moving forward, Illumina, Inc. (NASDAQ:ILMN) may have to divest Grail if European regulators refuse its appeal.
Like Illumina, Inc. (NASDAQ:ILMN), Tesla, Inc. (NASDAQ:TSLA), NextEra Energy, Inc. (NYSE:NEE) and CVS Health Corporation (NYSE:CVS), were also among the top 10 stocks to watch today.
6. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 50
Lululemon Athletica Inc. (NASDAQ:LULU) came into the limelight on Tuesday morning after Barclays analyst Adrienne Yih raised her price target for the athletic apparel retailer from $435 per share to $446 per share.
Yih, who has an overweight rating for Lululemon Athletica Inc. (NASDAQ:LULU), was moved by the company’s Q2 results. Last week, Lululemon delivered impressive financial results for its fiscal second quarter.
Lululemon Athletica Inc. (NASDAQ:LULU) earned $2.20 per share on an adjusted basis, topping the expectations of $1.87 per share. In addition, the quarterly sales jumped 29 percent on a year-over-year basis to $1.87 billion, beating the estimates of $1.774 billion.
Looking forward, the company also raised its fiscal 2022 outlook. Lululemon Athletica Inc. (NASDAQ:LULU) now expects adjusted earnings in the range of $9.75 – $9.90 per share and revenue between $7.865 – $7.940 billion for the full year.
5. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 59
Shares of Enphase Energy, Inc. (NASDAQ:ENPH) rose over five percent this morning after the energy technology company announced that it has extended its partnership with renewable energy firm BayWa r.e.
According to the terms of the agreement, BayWa r.e. will distribute Enphase Energy’s inverters and batteries in Germany and Benelux. Enphase Energy, Inc. (NASDAQ:ENPH) expressed its pleasure over the latest collaboration, saying the installer customers in the region will now have more access to its microinverters and battery systems.
Despite macro headwinds, Enphase Energy, Inc. (NASDAQ:ENPH) shares have performed well so far in 2022. The stock has jumped nearly 60 percent on a year-to-date basis.
4. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 59
Shares of NextEra Energy, Inc. (NYSE:NEE) advanced over three percent in mid-day trading Tuesday after Morgan Stanley upgraded the producer of wind and solar energy from “Hold” to “Buy.”
Analyst David Arcaro thinks NextEra Energy, Inc. (NYSE:NEE) is set to benefit from the recently approved Inflation Reduction Act, which includes tax credits for renewable power generation. He also increased his price target for NextEra Energy, Inc. (NYSE:NEE) from $94 per share to $99 per share.
Separately, global asset manager ClearBridge Investments also discussed NextEra Energy, Inc. (NYSE:NEE) in its second-quarter 2022 investor letter, stating:
“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world that energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.”
3. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 63
FedEx Corporation (NYSE:FDX) is next on the list of top 5 stocks to watch today. The provider of express and freight delivery services received a downgrade from Citi this morning. As a result, its shares slipped over 2 percent before the opening bell on Tuesday.
Citi analyst Christian Wetherbee lowered his ratings for FedEx Corporation (NYSE:FDX) from “Buy” to “Neutral,” citing declining freight volumes across various transportation modes. He also cut his price target for FedEx from $270 per share to $225 per share.
Wetherbee was moved by the macro challenges that could hurt the growth of FedEx Corporation (NYSE:FDX) this year. He expects weak truck freight traffic in the second half of the year.
2. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 65
CVS Health Corporation (NYSE:CVS) has decided to acquire Signify Health in a cash transaction valued at roughly $8 billion. CVS shares slipped over 1 percent in mid-day trading Tuesday following the news.
Signify is engaged in providing healthcare services to millions of patients through a network of 10,000 doctors in the U.S. CVS Health Corporation (NYSE:CVS) expects to close the deal by the second half of 2023.
Speaking on the development, CEO of CVS Health Corporation (NYSE:CVS), Karen Lynch, said:
“Signify Health will play a critical role in advancing our health care services strategy and gives us a platform to accelerate our growth in value-based care. This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) came into the limelight this morning following reports that the company is trying to cut the cost of batteries in its electric vehicles (EVs) using dry-coating technology.
The technology could reportedly help Tesla, Inc. (NASDAQ:TSLA) in reducing the cost of a Model Y battery by 50 percent. The dry-coating technique is intended for developing bigger cells in the company’s 4680 battery.
However, Tesla, Inc. (NASDAQ:TSLA) would reportedly need some time to scale up the battery production using this technique. Battery is one of the most expensive components used in an electric vehicle. Industry experts believe Tesla, Inc. (NASDAQ:TSLA) could significantly improve its profit margins if it succeeds in decreasing battery costs.
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Disclosure: None. Top 10 Stocks to Watch Today is originally published on Insider Monkey.
