The stock market kicked off the first trading day of the week on a lackluster note, with major indices finishing mixed as it struggled to rebound from Friday’s bloodbath.
The Dow Jones was the sole gainer among the main indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.
Meanwhile, ten companies registered strength, albeit posting only modest gains. This article details the reasons behind their performance.
To come up with Monday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A man in long sleeves looking at stock market data. Photo by Tima Miroshnichenko on Pexels
10. Bristol-Myers Squibb Co (NYSE:BMY)
Bristol-Myers saw its share prices grow by 3.67 percent on Monday to finish at $57.88 apiece as investors cheered news of the company’s submission of a supplemental biologics license to the Food and Drug Administration for its drug treatment Opdivo plus Yervoy.
The drugs are expected to become a potential first-line treatment option for adult and pediatric patients with unresectable or metastatic microsatellite instability-high (MSI-H) or mismatch repair deficient (dMMR) colorectal cancer.
The application followed the successful clinical trial that resulted in superior progression-free survival for the Opdivo plus Yervoy combination.
According to BMY, the FDA granted the application Breakthrough Therapy Designation and Priority Review status and assigned a Prescription Drug User Fee Act (PDUFA) goal date of June 23, 2025.
9. Baxter International Inc. (NYSE:BAX)
Baxter International grew its share prices by 3.73 percent on Monday to close at $35.08 apiece as investor sentiment was buoyed by an investment bank’s upgraded rating for the company.
In a report, UBS raised its price target for BAX by 7.7 percent to $35 from $32.5 previously, while maintaining a ‘neutral’ rating for the company.
The rating adjustment followed the company’s release of its 2024 earnings, where it swung to a net loss attributable to shareholders of $512 million in the last quarter versus the $245 million attributable net income registered in the same period a year earlier.
Net sales were little changed, up only 1 percent to $2.753 billion from $2.729 billion in the same comparable period.
In the full year alone, BAX also registered a net loss attributable to shareholders of $649 million, a reversal from the $2.656 billion attributable net income in 2023.
8. Etsy Inc. (NASDAQ:ETSY)
Etsy snapped a three-day losing streak on Monday, adding 3.86 percent to end at $53.24 apiece as investors resorted to bargain-hunting to take advantage of its cheap valuation.
Additionally, Needham & Company LLC’s report maintaining its “buy” rating for the company helped fuel investor sentiment on the back of a strong earnings performance last year.
According to ETSY, net income increased by 56 percent during the period at $129.9 million from $83 million year-on-year, while revenues inched up by 1.2 percent to $852 million from $842 million.
However, 2024 saw experienced lower gross merchandise sales (GMS) and number of active buyers for the company.
Consolidated GMS declined by 6.8 percent to $3.7 billion, while GMS from its marketplace dropped 8.6 percent to $3.3 billion as a result of pressures on consumer discretionary product spending, challenging year-on-year comparisons in a shortened holiday season, category mix, and a highly promotional and competitive retail environment.
7. Hims & Hers Health Inc. (NYSE:HIMS)
Hims & Hers rallied by 4.12 percent on Monday to close at $51.31 apiece as investor sentiment was boosted by its impressive earnings performance last year.
In a statement, HIMS said net income for the fourth quarter of the year jumped by 1,990 percent to $26.025 million from $1.245 million as revenues nearly doubled to $481.1 million from $246.6 million year-on-year.
The strong performance contributed to the company’s $126 million net income in full-year 2024, reversing a net loss of $23.456 million in 2023.
HIMS CEO Andrew Dudum said that 2024 was a fantastic year for HIMS, with over 2 million subscribers now entrusting the company to aid them in their health journey.
For the first quarter of the year, HIMS targets revenues to settle between $520 million and $540 million, as well as $2.3 billion to $2.4 billion in full year 2025.
6. Zeta Global Holdings Corp. (NYSE:ZETA)
Zeta Global grew its share prices by 4.34 percent on Monday to finish at $21.63 apiece as investors repositioned their portfolios ahead of the release of its 2024 earnings performance.
ZETA is expected to announce its fourth-quarter earnings results after market close on February 25, Tuesday, where investors will be watching out for whether the company will beat or miss analysts’ expectations.
According to Zacks Research, the consensus estimate for its earnings is pegged at 23 cents per share, or a 35.3-percent rise year-on-year.
Meanwhile, Zacks Consensus Estimate for revenues in the fourth quarter alone is expected to settle at $295 million, or a 40.3-percent growth on a year-on-year basis.
5. ZIM Integrated Shipping Services (NYSE:ZIM)
ZIM Integrated rose for a fourth consecutive day on Monday, adding 4.5 percent to close at $21.85 apiece, with investors buying shares despite the lack of positive catalysts to fuel appetite.
The rally could also be attributed to an early portfolio repositioning ahead of the company’s release of its earnings results for the fourth quarter of the year next month.
In the call, investors will be watching out for ZIM’s business outlook over the next few years, with the focus on any potential impact from the growing trade tensions on its performance in the year ahead, especially following reports over the weekend that Trump administration’s officials are set to slap higher port fees on Chinese shipping vessels, as well as those ships made in China.
ZIM—while based in Israel—buys its new vessels from China. Just recently, ZIM received its 15th and last vessel from the Yangzijiang Shipbuilding Group of China, which it co-owns with Canadian shipping firm Seaspan.
4. The Wendy’s Company (NASDAQ:WEN)
Wendy’s saw its share prices increase by 4.8 percent on Monday to end at $15.94 apiece as investors continued to digest the company’s mixed earnings performance last year as well as key economic factors such as inflation and business activity index.
Earlier this month, WEN said its net income for the fourth quarter of 2024 inched up by 1.3 percent to $47.5 million from $46.9 million in the same period last year as revenues increased by 6.2 percent to $574.3 million from $540.7 million.
Net income for the full year, however, dipped by 4.9 percent to $194.4 million from $204.4 million in 2023, despite revenues inching up by 3 percent to $2.246 billion from $2.181 billion in the same comparable period.
Meanwhile, S&P Global Market Intelligence reported on Friday that US business activities nearly stalled this month, dropping to a 17-month low, suggesting that businesses and consumers were becoming increasingly rattled by economic policies.
3. Coty Inc. (NYSE:COTY)
Coty grew its share prices by 4.9 percent on Monday to end at $5.99 apiece, with investors discounting news of a rating downgrade from an investment banking company.
On Monday, Piper Sandler downgraded its price target for COTY to $8 from $9 previously while maintaining an ‘overweight’ rating on the stock. The new price target represents a 33.5-percent premium from its latest closing price.
The lower target came after a disappointing 2024 earnings performance and a pessimistic outlook guidance.
In its latest earnings release, COTY registered an 83-percent lower net income for the past quarter, ending at $30.6 million versus the $186 million year-on-year, pulling down its net profit from July to December by 38 percent to $121.3 million from $196.2 million year-on-year.
Net revenues for the quarter dipped by 3 percent to $1.67 billion from $1.73 billion, while six-month net revenues were flat at $3.3 billion.
Given the dismal performance, COTY cut its annual profit forecast primarily due to expectations of lower demand for cosmetics products.
2. Nike Inc. (NYSE:NKE)
Nike rallied by 4.94 percent on Tuesday to close at $80.28 apiece as investors gobbled up shares in the company following Jefferies’ recommendation to buy the stocks “aggressively.”
According to its analysts, NKE, which was trading at a nearly five-year low, is set for a comeback and could rise by more than 40 percent in value based on its recent prices.
“After a few years of challenges and self-inflicted wounds, we believe new leadership will improve product direction and re-establish balance between [direct to consumer] and wholesale [channels],” it said.
“With shares near a valuation trough, we believe now is the right time to aggressively buy shares,” it added.
Jefferies has set a new price target for NKE at $115, well above the $80 mean on Wall Street.
1. Walgreens Boots Alliance (NASDAQ:WBA)
Walgreens jumped by 6.5 percent on Monday to end at $10.82 apiece as investors snapped up shares on brimming optimism about the company’s potential acquisition.
On Monday, credit information provider Octus said in its social media handle on X that Morgan Stanley, UBS, and other private lenders are working on a $10 billion package to back Sycamore Partners’ potential buyout.
Recent reports earlier suggested that Sycamore and WBA’s negotiations remained alive after being considered mostly dead a few weeks ago.
Reports about the potential acquisition broke out in December last year, with the deal expected to be successfully closed this year.
According to the report, Sycamore “would likely sell off pieces of the business or work with partners.”
In October last year, WBA announced that it was closing around 1,200 stores over the next three years, including 500 for this year alone, as it scrambles to turn around its ailing business.
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Disclosure: None. This article is originally published at Insider Monkey.
