The stock market kicked off the trading week in a bloodbath, erasing last week’s gains, with all major indices posting heavy losses following President Donald Trump’s confirmation that tariffs on goods from Mexico and Canada are set to take effect on Tuesday.
The tech-heavy Nasdaq posted the biggest loss, down 2.64 percent, followed by S&P at 1.76 percent, and Dow Jones at 1.48 percent.
According to Trump, there was no room left for Mexico and Canada, and his 25-percent tariff for the two countries “will start.” He also signed an additional 10-percent tariff on goods from China.
Despite the market decline, ten companies bucked an overall pessimistic sentiment, making it to the top gainers list mainly due to bullish ratings and earnings performance, among others. In this article, we have detailed the reasons behind their gains.
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.
Stock market charts. Photo by Kaboompics.com on Pexels
10. Life Time Group Holdings Inc. (NYSE:LTH)
Life Time Group kicked off the week stronger, adding 3.18 percent to its valuation to close at $31.43 apiece as investors cheered news of its strong earnings performance last year.
LTH, which owns and manages fitness and recreational sports centers, saw net income in the fourth quarter of 2024 grow by 57 percent to $37.2 million from $23.7 million in the same period last year due to improved business performance. Revenues rose by 18.7 percent to $663.3 million from $558.8 million due to continued strong growth in membership dues and in-center revenue, driven by an increase in average dues, membership growth in new and ramping centers, and higher member utilization of in-center offerings.
Net income for full year 2024 alone more than doubled to $156.2 million from $76.1 million in 2023 as revenues increased 18.2 percent to $2.621 billion from $2.216 billion.
9. AppLovin Corporation (NASDAQ:APP)
AppLovin recovered for the second day on Monday following eight consecutive days of battering, adding 3.56 percent to close at $337.34 apiece as investors cheered an investment bank backing APP against two short-sellers which claimed that APP force-fed other mobile application downloads onto a user’s device.
In its report, Benchmark believed that the allegations from Fuzzy Panda and Culper Research were based on speculation, mischaracterization, and misinformation. It said that APP followed regulations, created real advertising value, and delivered financial transparency to its customers.
It also accused Fuzzy Panda and Culper Research of being interested in profiting on downturns in APP stock, and that APP does not seek to obtain fraudulent clicks.
Benchmark gave a “buy” rating and a $525 price target on APP.
8. Sandisk Corp. (NASDAQ:SNDK)
Sandisk rallied by 7.39 percent on Monday to end at $50.31 apiece as investor sentiment was buoyed by its upgraded rating from an investment bank.
Morgan Stanley on Monday announced that it initiated coverage on SNDK and gave the company a price target of $84 and an overweight rating.
The price target represented a 67-percent premium on SNDK’s latest stock price.
According to Morgan Stanley analyst Joseph Moore, it sees the first semester of the year as tough for SNDK’s NAND storage technology, but a 90-percent upside for the shares in twelve months as cyclical drivers reverse for an “underappreciated” NAND franchise.
Despite uncertainties, Moore said that SNDK offers one of the best risk/rewards in its industry.
7. Haleon Plc (NYSE:HLN)
British multinational healthcare firm Haleon Plc rose for a second day on Monday, adding 3.93 percent to close at $10.58 apiece as investors cheered its bullish outlook from an investment firm.
Barclays in a research report on Monday said it maintained a “buy” rating on HLN and set a price target of £4.45.
The upgrade followed a separate coverage from Kepler Capital last week, which also gave HLN a “buy” rating and a price target of £4.25.
Last week, HLN said it achieved a 37-percent increase in its net income attributable to shareholders for full year 2024, ending at £1.44 billion versus £1.05 billion in 2023.
Revenues, however, were lower at £11.2 billion versus £11.3 billion year-on-year.
6. Nokia Oyj (NYSE:NOK)
Nokia rose by 4.37 percent on Monday to finish at $5.01 apiece as investor sentiment was boosted by its partnership with Verizon and Lockheed Martin that successfully integrated a military-grade 5G technology into the latter’s 5G.MIL Hybrid Base Station.
The integration would enhance the ability to merge commercial 5G connections with military communications systems which is vital for national defense.
In other news, NOK also successfully concluded the $2.3 billion acquisition of Infinera as part of its plans to strengthen its presence in the data center market and ride the booming Artificial Intelligence industry.
On Friday, NOK said the European Commission unconditionally approved its takeover of Infinera. The acquisition paved the way for the Finnish firm to strengthen its presence in both North America and webscale customers.
Following the acquisition, NOK appointed Justin Hotard, formerly head of Intel’s data center and AI group, as its new CEO. He is set to replace Pekka Lundmark.
5. Capri Holdings Ltd. (NYSE:CPRI)
Capri Holdings extended its winning streak for a fourth day on Monday, adding 3.87 percent to close at $22.83 apiece following news that Italian fashion giant Prada was moving closer to acquiring the Versace brand.
According to a report by Bloomberg, Prada has agreed to pay nearly 1.5 billion euros or $1.6 billion to acquire Versace which Capri Holdings purchased in 2018 for approximately 1.8 billion euros.
The report, citing people privy to the matter, said that the deal could be finalized as early as this month and that the price and timing could still change.
According to Bloomberg, the acquisition of the company founded by the late designer Gianni Versace would help Prada better compete with global luxury rivals such as LVMH which owns Louis Vuitton, Christian Dior, and Tiffany & Co., as well as Kering SA which owns Yves Saint Laurent, Gucci, Balenciaga, Creed, and Alexander McQueen, among others.
4. UWM Holdings Corp. (NYSE:UWMC)
UWM Holdings rose by 4.62 percent on Monday to finish at $6.57 apiece after an analyst from Keefe, Bruyette, and Woods upgraded its rating and price target for the company.
In its report released Monday, analyst Bose George raised UWM’s rating to “outperform” from “market perform” previously while also increasing its price target to $7.5 from $6.5, which represents a 14-percent upside from its latest closing price.
According to George, the outlook adjustment was based on his belief that the stock’s 5-percent decline following its fourth-quarter earnings on February 26 was an overreaction, and that the company is expected to benefit largely from a mortgage market that is now transitioning to normal.
Meanwhile, another analyst from Wedbush maintained its hold rating for UWM and set a price target of $6.5.
3. DoubleVerify Holdings Inc. (NYSE:DV)
DoubleVerify jumped by 7.19 percent on Monday to close at $14.90 apiece as investors resorted to bargain-hunting after a 36-percent plunge on Friday and entering the oversold territory, which was further aggravated by its poor earnings performance last year.
In its latest earnings release, DV’s net income last year fell by 21.2 percent to $56.2 million from $71.4 million in 2023, while revenues increased by 14.86 percent to $656.8 million from $572.5 million.
Net income for the fourth quarter alone dropped by 29 percent to $23 million from $33 million.
Looking ahead, DV expects revenues for the first quarter of the year to settle between $151 million and $155 million, while revenues for the full year were expected to increase by 10 percent.
2. TG Therapeutics Inc. (NASDAQ:TGTX)
TG Therapeutics surged by 14.39 percent on Monday to close at $34.42 apiece as investors cheered news of impressive earnings performance last year.
In its latest earnings report, TGTX said it swung to a net income of $23.3 million in the last quarter of 2024 from a net loss of $14.4 million in the same period a year earlier while net income in full-year 2024 surged by 84.5 percent to $23.38 million from $12.67 million.
Revenues for the quarter expanded by 146 percent to $108.18 million from $43.97 million, while revenues for the full year grew 41 percent to $329 million from $233.7 million.
For this year, TGTX is targeting revenues to end at $540 million, with $525 million expected to be owed to its BRIUMVI treatment.
Operating expense is also expected to hit $300 million, excluding non-cash compensation.
1. Allegro MicroSystems Inc. (NASDAQ:ALGM)
Allegro soared by 14.89 percent on Monday to finish at $25.62 apiece as investors gobbled up shares in the company following news that it is set to be acquired by its competitor ON Semiconductor.
Citing people privy to the matter, Bloomberg News reported that ON Semiconductor has been working with advisers in recent months for its planned acquisition of ALGM albeit the latter has not indicated if it would be open to a potential sale.
The report added that other potential companies could still emerge to compete with ON Semiconductor to expand their automotive capabilities.
On Monday, ALGM appointed Mike Doogue as its new president and chief executive officer, replacing Vineet Nargolwala.
While we acknowledge the potential of ALGM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALGM but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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