In this article, we will discuss some of the notable stocks on the move today. To take a look at some more stocks that are trending, go to 5 Market-Moving Stocks to Watch on Monday.
US stocks have started the week on a positive note following upbeat May jobs report that reiterated the Federal Reserve’s stance of taking stricter monetary policy action. The S&P 500 and the Dow 30 Index are up 0.40% and 0.13%, while the tech-heavy NASDAQ Composite Index is 0.43% in the green as of 1:02 PM ET. Popular stocks such as Amazon.com, Inc. (NASDAQ:AMZN), Twitter, Inc. (NASDAQ:TWTR), and NVIDIA Corporation (NASDAQ:NVDA) are amongst the stocks on the move today.
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Let’s look at why these stocks are trending today and discuss how hedge funds are positioned in them.
10. Lululemon Athletica Inc. (NASDAQ:LULU) has risen 0.66% as of 1:00 PM ET after the Vancouver, Canada-based athleisure apparel brand was upgraded from an Underperform to a Market Perform rating by Aneesha Sherman at Bernstein. The analyst gave the stock a price target of $300. Sherman highlighted the 22% decline in stock price since the start of the year and stated that the high multiples have eroded from growth stocks like Lululemon Athletica Inc. (NASDAQ:LULU). The decline in stock price has taken place despite the upward revision in FY22 EPS guidance. However, Sherman sees upside potential in Lululemon Athletica Inc.’s (NASDAQ:LULU) men’s business and a sharper international strategy.
Lululemon Athletica Inc. (NASDAQ:LULU) was held by 44 hedge funds as of Q1 2022.
9. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has gained 3.95% as of 1:01 PM ET after the Austin, Texas-based cloud-based cybersecurity platform provider was upgraded from an Equal Weight to an Overweight rating by Hamza Fodderwala at Morgan Stanley. The analyst also increased the price target on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) from $195 to $215. Fodderwala shared that the stock offers a “defensive positioning” during an uncertain macroeconomic environment and the recent slump in stock price provides an attractive point of entry to potential investors. The demand for cybersecurity services remains strong in every macroeconomic situation as companies are always looking to boost their defenses and reduce vulnerability to attacks.
Here’s what Baron Funds said about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2022 investor letter:
“CrowdStrike, Inc. provides cloud-delivered, next generation security solutions via its Falcon platform consisting of end-point protection, advanced persistent threat, security information, event management, and cloud workload protection. Shares rose 11% in the first quarter, on the back of impressive quarterly results with net new annual recurring revenue (ARR) accelerating for the second straight quarter to 52% year-over-year and the company’s favorable unit economics driving 30% free cash flow margins. Moreover, key new disclosures highlight how non-end-point products are seeing momentum with cloud product-generated ARR surpassing $100 million, representing 8% of net new ARR in the quarter. With more workloads migrating to or starting in the cloud, we believe CrowdStrike is well positioned to compound at high growth rates for years given its unique product platform and attractive go-to-market business model.”
Out of the 912 hedge funds being tracked by Insider Monkey at the end of Q1 2022, 80 funds held a position in CrowdStrike Holdings, Inc. (NASDAQ:CRWD).
8. DiDi Global Inc. (NYSE:DIDI) has rocketed 38.11% as of 12:59 PM ET after reports that the Chinese ride-sharing giant will be cleared from the investigation of the Chinese government authorities in regards to cybersecurity. DiDi Global Inc. (NYSE:DIDI) will then be permitted to add users to its platform, and it would allow the company to come back to app stores across China. However, this development has not been easy for the organization as it filled the required documents with the US Securities and Exchange Commission (SEC) to delist its shares on the New York Stock Exchange (NYSE) in late May. After leaving the US stock market, DiDi Global Inc. (NYSE:DIDI) intends to list on the Hong Kong Stock Exchange.
Here’s what Davis Funds said about DiDi Global Inc. (NYSE:DIDI) in its Q4 2021 investor letter:
“The second regulatory action took place shortly after the initial public offering of Didi Global, China’s ride-sharing leader, on the New York Stock Exchange (NYSE). In early July, the Cybersecurity Administration of China (CAC), implementing provisions from the new Data Security Law issued on June 10, announced that Didi will undergo a cybersecurity review, and further downloading of its app was suspended. Didi’s data privacy and collection policies, as well as data security considerations stemming from the company’s U.S. listing, were the focus of the review. On December 3, Didi announced that it planned to delist from the NYSE and relist in Hong Kong. The market understandably dislikes uncertainty, and it will take several months for the relisting process to be finalized. Over the long run, however, we believe a Hong Kong listing will resolve the CAC’s concerns around national data security, and it will provide a globally recognized primary listing venue, as it already does for other large Chinese internet companies such as Tencent and Meituan. Over time, the value of Didi, like any other company, will be determined by its business prospects and profitability rather than the location of its primary exchange listing.”
Overall, DiDi Global Inc. (NYSE:DIDI) was held by 15 hedge funds as of Q1 2022.
7. Occidental Petroleum Corporation (NYSE:OXY) has slipped 1.02% as of 1:01 PM ET. The stock of the Texas-based crude oil and natural gas exploration and production (E&P) company has come under pressure after crude oil production from the biggest oilfield in Libya has resumed. The Sharara oilfield can pump 300,000 barrels per day (bpd) and was shut down after protestors demanded that Prime Minister Fathi Bashagha should be given power after his swearing-in. Brent crude price is almost flat at around $119.82 per barrel despite the Saudi increasing crude oil prices for July delivery.
In its Q3 2021 investor letter, Smead Capital Management discussed its stance on Occidental Petroleum Corporation (NYSE:OXY). Here’s what the firm said:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
Occidental Petroleum Corporation (NYSE:OXY) was held by 67 hedge funds as of Q1 2022. Berkshire Hathaway was the leading hedge fund investor in Occidental Petroleum Corporation (NYSE:OXY) during the first quarter of 2022.
6. Enphase Energy, Inc. (NASDAQ:ENPH) has risen 5.83% as of 12:59 PM ET after the Freemont, California-based provider of solar solutions received a boost after the White House declared a two-year exemption on tariffs for solar panels. The Biden Administration has increased its focus on manufacturing solar panels locally and allowed the use of the Defense Production Act to expedite the local manufacturing of clean energy technologies. The US government is targeting to raise local solar manufacturing capacity to 22.5 GW by 2024. This would be three times higher than the capacity in January 2021, when President Biden took over the White House.
Enphase Energy, Inc. (NASDAQ:ENPH) was mentioned in the Q1 2022 investor letter of ClearBridge Investments. Here’s what the firm said:
“Enphase Energy (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”
Overall, 57 elite funds held a position in Enphase Energy, Inc. (NASDAQ:ENPH) as of Q1 2022.
Along with Enphase Energy, Inc. (NASDAQ:ENPH), some other trending stocks today include Amazon.com, Inc. (NASDAQ:AMZN), Twitter, Inc. (NASDAQ:TWTR), and NVIDIA Corporation (NASDAQ:NVDA).
Click to continue reading and see 5 Market-Moving Stocks to Watch on Monday.
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Disclose. None. 10 Market-Moving Stocks to Watch on Monday is originally published on Insider Monkey.
