Top 10 Trending Stocks on Friday

Published on September 9, 2022 at 4:14 pm by Fahad Ali Khan in News

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

Cloud security firm Zscaler, Inc. (NASDAQ:ZS), retail company The Kroger Co. (NYSE:KR) and industrial products manufacturer 3M Company (NYSE:MMM) made their way into the headlines this morning.

Zscaler, Inc. (NASDAQ:ZS) and The Kroger Co. (NYSE:KR) came into the limelight after posting their earnings. On the other hand, 3M Company (NYSE:MMM) shares gained value on an unusual volume after receiving an upgrade from UBS.

Many other stocks, including Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and RH (NYSE:RH), also caught investors’ attention this morning. Check out the complete article to find out what brought them on the list of top 10 trending stocks on Friday.

Image by MayoFi from Pixabay

10. Zumiez Inc. (NASDAQ:ZUMZ)

Number of Hedge Fund Holders: 12

Shares of Zumiez Inc. (NASDAQ:ZUMZ) plummeted to a new 52-week low this morning after posting its fiscal second-quarter results below expectations. The specialty clothing retailer’s results were primarily weighed down by macroeconomic headwinds.

Zumiez Inc. (NASDAQ:ZUMZ) reported earnings of 16 cents per share, significantly lower than 94 cents per share in the year-ago quarter. Revenue also declined 18.1 percent to $220 million. The results missed the consensus of 47 cents per share for earnings and $231.5 million for revenue.

Looking forward, Zumiez Inc. (NASDAQ:ZUMZ) lowered its full-year outlook to a range of $1.30 – $1.55 per share, well below the expectations of $3.44 per share.

Speaking on the results, CEO of Zumiez Inc. (NASDAQ:ZUMZ), Rick Brooks, said in a statement:

“As the second quarter progressed, we experienced continued pressure on our U.S. business as macroeconomic headwinds, led by inflation weighed on consumer discretionary spending.”

9. Smith & Wesson Brands, Inc. (NASDAQ:SWBI)

Number of Hedge Fund Holders: 13

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is next on the list of top 10 trending stocks on Friday. The Massachusetts-based company came into the limelight after announcing disappointing financial results for its fiscal first quarter. As a result, its shares touched a new 52-week low of $12.47 this morning.

The firearm maker earned 11 cents per share on an adjusted basis, down from $1.57 per share in the same period of 2021. Revenue plummeted over 69 percent on a year-over-year basis to $84.4 million. Analysts expected Smith & Wesson Brands, Inc. (NASDAQ:SWBI) to earn 34 cents per share on revenue of $129.78 million.

Gross margins also declined to 37.3 percent, from 47.3 percent in the comparable period of 2021. Smith & Wesson Brands, Inc. (NASDAQ:SWBI) attributed the weak results to normalizing demand trends.

8. Virgin Galactic Holdings, Inc. (NYSE:SPCE)

Number of Hedge Fund Holders: 15

Shares of Virgin Galactic Holdings, Inc. (NYSE:SPCE) fell over six percent this morning after Bernstein analyst Douglas Harned lowered his ratings for the spaceflight company from “Market Perform” to “Underperform.”

Harned was moved by a series of weak quarterly performances, delays in flight operations and insufficient capital. He cut his price target for Virgin Galactic Holdings, Inc. (NYSE:SPCE) from $7 per share to $4 per share.

Virgin Galactic Holdings, Inc. (NYSE:SPCE) hasn’t been able to start its commercial space tourism services due to several reasons. The delay has continuously pushed its stock price lower. The company’s shares have lost about 77 percent of their value during the past 12 months.

Like Virgin Galactic Holdings, Inc. (NYSE:SPCE), Zscaler, Inc. (NASDAQ:ZS), The Kroger Co. (NYSE:KR) and 3M Company (NYSE:MMM) are also on the list of top 10 trending stocks on Friday.

7. Sprinklr, Inc. (NYSE:CXM)

Number of Hedge Fund Holders: 15

Shares of Sprinklr, Inc. (NYSE:CXM) rose over six percent this morning after beating financial expectations for its fiscal second quarter. The enterprise software provider reported an adjusted loss of 3 cents per share, narrower than an adjusted loss of 9 cents per share in the year-ago period.

In addition, Sprinklr, Inc. (NYSE:CXM) posted revenue of $150.6 million, up from $118.7 million in the corresponding period of 2021. The results were better than analysts’ average estimate for a loss of 6 cents per share on revenue of $147.31 million.

Sprinklr, Inc. (NYSE:CXM) also issued its financial outlook for the current quarter. It guided for an adjusted loss of 1 – 2 cents per share and revenue of $155 – $157 million for its fiscal third quarter.

6. DocuSign, Inc. (NASDAQ:DOCU)

Number of Hedge Fund Holders: 37

DocuSign, Inc. (NASDAQ:DOCU) beat financial expectations for its fiscal second quarter, sending its shares up more than 16 percent before the opening bell on Friday. The cloud-based electronic signature platform reported adjusted earnings of 44 cents per share, above the expectations of 42 cents.

Revenue came in at $622.2 million, up 22 percent on a year-over-year basis and better than the consensus of $602.34 million. DocuSign, Inc. (NASDAQ:DOCU) also disclosed its segment-wise sales results. Its subscription revenue jumped 23 percent to $605.2 million, while professional services and other revenue fell 11 percent to $17 million in the quarter.

For the current quarter, DocuSign, Inc. (NASDAQ:DOCU) expects to generate revenue in the range of $624 – $628 million. The midpoint of the outlook is above the consensus of $625.05 million.

5. Zscaler, Inc. (NASDAQ:ZS)

Number of Hedge Fund Holders: 40

Shares of Zscaler, Inc. (NASDAQ:ZS) jumped nearly 15 percent in pre-market trading Friday after delivering impressive financial results for its fiscal fourth quarter. The cloud security company earned 25 cents per share on an adjusted basis, well above 14 cents per share in the year-ago period.

Revenue for the quarter skyrocketed 61 percent versus last year to $318.1 million. Analysts expected Zscaler, Inc. (NASDAQ:ZS) to earn 20 cents per share on revenue of $305.41 million.

Looking forward, Zscaler, Inc. (NASDAQ:ZS) expects revenue in the range of $339 – $341 million for its fiscal first quarter and between $1.49 – $1.5 billion for its fiscal year 2023. The outlook was better than the consensus of $324.84 million for the current quarter and $1.47 billion for the full year.

4. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Number of Hedge Fund Holders: 44

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is next on the list of top 5 trending stocks on Friday. The biotechnology firm caught investors’ attention after a couple of research firms upgraded the stock this morning.

Morgan Stanley analyst Matthew Harrison improved his ratings for Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) from “Equal-Weight” to “Overweight,” citing encouraging results from late-stage trials of its eye treatment Eylea. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) recently announced that Eylea is more effective in treating eye conditions when given at higher levels.

Separately, Jefferies also upgraded Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) from “Underperform” to “Hold,” citing the same reason. The research firm also lifted its price target for the stock from $536 per share to $675 per share.

3. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 49

Shares of The Kroger Co. (NYSE:KR) turned green after the opening bell on Friday. The surge came after the retail company posted its fiscal second-quarter results above expectations and raised its profit outlook for the full year.

The Kroger Co. (NYSE:KR) benefitted from the elevated demand for essential household items during the quarter. The company earned 90 cents per share on an adjusted basis, topping the estimates of 77 cents per share. Revenue came in at $34.6 billion, while analysts were looking for $34.2 billion.

For the full year, The Kroger Co. (NYSE:KR) now anticipates adjusted earnings in the range of $3.95 – $4.05 per share, up from its previous guidance of $3.85 – $3.95 per share.

2. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 54

Shares of 3M Company (NYSE:MMM) rose over three percent this morning after UBS analyst Chris Snyder raised his ratings for the manufacturer of industrial products from “Sell” to “Neutral.”

Snyder thinks that troubles related to recent litigations have been mirrored in the company’s share price. He also advised investors to stop selling stakes in the company. Moreover, he raised his price target for 3M Company (NYSE:MMM) from $118 per share to $126 per share.

Separately, 3M Company (NYSE:MMM) also appeared in the second-quarter 2022 investor letter of asset management firm Mayar Capital. Here’s what the firm said:

“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.”

1. RH (NYSE:RH)

Number of Hedge Fund Holders: 59

RH (NYSE:RH) came into the limelight today following its fiscal second-quarter results. The home-furnishings company reported adjusted earnings of $8.08 per share, up from $7.09 per share in the corresponding period of 2021.

In addition, RH (NYSE:RH) posted revenue of $992 million, compared to $989 million in the year-ago period. The results were better than analysts’ average estimate of $6.71 per share for earnings and $969 million for revenue.

On the downside, RH (NYSE:RH) lowered its sales guidance for the full year, citing weakness in the housing market. The company now expects its sales to drop in the range of 3.5 – 5.5, versus its earlier projection calling for a drop of 2 – 5 percent.

Discussing the outlook, RH (NYSE:RH) said in a statement:

“As noted in our updated Outlook provided on June 29, 2022, our expectation is for continued softening in our business trends during the remainder of fiscal 2022 as a result of ongoing weakness in the housing market over the next several quarters and possibly longer due to the Federal Reserve’s anticipated interest rate increases and the cycling of record COVID-driven sales levels in 2021.”

You can also take a peek at Best and Reliable High Dividend REITs to Buy Now and 10 Best Cyclical Stocks for Inflation.

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