- Adobe (Symbol: ADBE) — Shares of the software company jumped more than 4% following second-quarter earnings results. Adobe reported a profit of $2.45 per share for the quarter, which was 12 cents ahead of consensus estimates. Revenue was slightly short of expectations, however, and the company gave lighter-than-expected current quarter guidance.
- PVH (Symbol: PVH) – Shares of the retailer slid more than 7% after the company missed top- and bottom-line estimates in the first quarter. PVH lost $3.03 per share, compared with the $1.67 per share loss the Street had been expecting. Revenue was also light after the company was forced to shutter its stores during the coronavirus lockdown.
- Dick’s Sporting Goods (Symbol: DKS) — Shares of the sporting goods retailer surged more than 8% after the company said it was reinstating its dividend. Dick’s suspended its dividend in the first quarter during the coronavirus pandemic but now, with strong early sales results as stores have re-opened the company is in a better cash position.
- Tesla (Symbol: TSLA) — Shares of Tesla dropped more than 3% after Morgan Stanley downgraded the electric car maker to “underweight” from “equal-weight.” The bank cited a slew of risks facing the company including the U.S.-China trade, near-term demand, capital needs and tech competition. The stock topped $1,000 apiece for the first time earlier this week.
- Lululemon Athletica (Symbol: LULU) — Shares of the apparel company fell more than 4% after it reported a weaker-than-expected fiscal first quarter. Lululemon reported earnings of 22 cents per share, one cent below Wall Street estimates, and $652 million of revenue, $36 million below expectations, according to Refinitiv. Sales declined year-over-year despite 68% growth in direct-to-consumer channels.
- American Airlines (Symbol: AAL) — American Airlines stock rallied 15% in midday trading Friday after the company announced in a filing that it expects second-quarter revenues to be down about 90% on year and said it pursued significant cost-cutting measures to remove more than $13.5 billion from its operating and capital budgets for 2020. It also said its cash burn rate has decelerated to about $40 million a day forecast for June versus a peak of more than $100 million a day in April.
Food for thought:
Which stocks are primed to outperform during this notably volatile period? Here are a few of the names the best-performing Wall Street analysts are betting on.
- Five-star Oppenheimer analyst Rick Schafer reiterated his buy rating on Analog Devices (Symbol: ADI) on June 10 after catching up with ADI IR Director Michael Lucarelli. The company is on the cusp of a major opportunity in the 5G space, with Schafer revealing that ADI is his top large-cap play on 5G infrastructure right now.
- Chewy (Symbol: CHWY) posted a strong quarter on June 9. Revenue grew 46 percent year-over-year to $1.62 billion, driven by record customer net additions, while EBITDA turned positive for the first time in company history.
Analysts ramped up their stock price forecast from $40 to $62. Despite the stock’s 71 percent year-to-date rally, new price target indicates 25 percent further upside potential lies ahead.
- E-commerce giant Amazon (Symbol: AMZN) continues to be one of the Street’s favorite stock picks. On June 9, top Wells Fargo analyst Brian Fitzgerald reiterated his bullish stance on AMZN, arguing that strong digital demand should persist over the near to mid-term despite stores re-opening as the lockdown eases.
Based on increased forecasts and improving comparative valuations, he also bumped up his stock price forecast from $2,725 to $3,000 (13 percent upside potential). Shares in Amazon have already climbed 43 percent year-to-date.
- Despite Five Below (Symbol: FIVE) posting notably weak earnings for the first quarter, Oppenheimer’s Brian Nagel is sticking to his buy rating. As the specialty value retailer is currently trading down 11 percent year-to-date, his $140 stock price forecast indicates 23 percent upside potential for the next 12-18 months.
- Five-star JP Morgan analyst Cory Kasimov is positive about the outlook for BioMarin Pharma (Symbol: BMRN), a biotech focused on rare-disease therapies including Hemophilia A. This is a genetic deficiency in clotting factor VIII, which causes increased bleeding and usually affects males.
He reiterated his BMRN buy rating on June 10 after conducting a survey of 25 US hematologists to gauge the latest thoughts around key developments in the Hemophilia A space. The survey focused on BMRN’s experimental gene therapy Roctavian (valrox) which recently demonstrated sustained benefit in bleed rates over a four-year Phase 1/ 2 clinical trial.