In this article, we discuss the top 5 trending stocks on Friday. If you want to check out some more companies trending today, go directly to Top 10 Trending Stocks on Friday.
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.
