In this article, we will take a look at the 10 trending stocks on Tuesday. If you want to see some more stocks that made their way into the headlines today, go directly to 5 Trending Stocks on Tuesday.
All three major U.S. indices, including S&P 500, Dow Jones Industrial Average and Nasdaq Composite, were down about 1.5 percent in mid-day trading Tuesday. The drop was primarily attributed to increased sell-off activity on Wall Street driven by an expected surge in interest rates from the Federal Reserve tomorrow.
Ford Motor Company (NYSE:F), PayPal Holdings, Inc. (NASDAQ:PYPL) and NIKE, Inc. (NYSE:NKE) were among the top losers partly responsible for bringing down the key U.S. indices today.
Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) and NIKE, Inc. (NYSE:NKE) dropped following analysts’ downgrades. On the other hand, Ford Motor Company (NYSE:F) shares fell to a nearly two-month low after lowering its operating profit outlook for Q3.
Many other stocks, including Etsy, Inc. (NASDAQ:ETSY) and The Gap, Inc. (NYSE:GPS), were also trading lower this morning. Check out the complete article to find what brought them on the list of 10 trending stocks on Tuesday.
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10. Apogee Enterprises, Inc. (NASDAQ:APOG)
Number of Hedge Fund Holders: 14
Shares of Apogee Enterprises, Inc. (NASDAQ:APOG) rose nearly five percent this morning after beating financial expectations for its fiscal second quarter and lifting its outlook for the full year.
Apogee Enterprises, Inc. (NASDAQ:APOG) earned $1.06 per share on an adjusted basis, representing a nearly two-fold surge over the year-ago period. Revenue for the quarter advanced 14.2 percent versus last year to $372.1 million. Analysts called for earnings of 83 cents per share on revenue of $344.64 million.
The glass products maker also released its segment-wise sales results. Its architectural framing systems revenue jumped 26 percent to $172.9 million, architectural services revenue increased 11 percent to $106.7 million and large-scale optical revenue rose 7 percent to $25.2 million in the quarter. On the downside, architectural glass revenue decreased to $77.4 million, from $79.4 million in the corresponding period of 2021.
Looking forward, Apogee Enterprises, Inc. (NASDAQ:APOG) expects full-year adjusted earnings in the range of $3.75 – $4.05 per share, compared to its previous guidance between $3.50 – $3.90 per share.
9. The Gap, Inc. (NYSE:GPS)
Number of Hedge Fund Holders: 27
The Gap, Inc. (NYSE:GPS) came into the spotlight on Tuesday morning following the news that the clothing retailer is laying off 500 corporate employees. The latest development sent Gap stock down more than four percent after the opening bell today.
The San Francisco-based company currently faces several problems, and weak sales growth is certainly on the top of the list. In addition, The Gap, Inc. (NYSE:GPS) hasn’t been able to find its new CEO following the departure of Sonia Syngal earlier this year.
Last month, The Gap, Inc. (NYSE:GPS) also renounced its financial outlook for the full year, citing an uncertain macroeconomic environment. Moreover, its Old Navy brand is also grappling with issues related to product assortment.
8. Etsy, Inc. (NASDAQ:ETSY)
Number of Hedge Fund Holders: 29
Shares of Etsy, Inc. (NASDAQ:ETSY) fell over six percent in mid-day trading Tuesday. The drop came after BofA analyst Curtis Nagle issued a “Neutral” rating and set a price target of $120 per share for the e-commerce firm.
Etsy, Inc. (NASDAQ:ETSY) shares have lost around 50 percent of their value so far in 2022. Yet, Nagle still thinks investor should wait for a better price to make an entry. He sees limited growth opportunities in the near term due to macroeconomic challenges.
Like Etsy, Inc. (NASDAQ:ETSY), shares of Ford Motor Company (NYSE:F), PayPal Holdings, Inc. (NASDAQ:PYPL) and NIKE, Inc. (NYSE:NKE), also dropped after the opening bell today.
7. Cognex Corporation (NASDAQ:CGNX)
Number of Hedge Fund Holders: 29
Cognex Corporation (NASDAQ:CGNX) is next on the list of 10 trending stocks on Tuesday. The vision-based product manufacturer caught investors’ attention this morning after raising its sales outlook for the third quarter.
The Massachusetts-based company now expects to generate revenue in the range of $195 – $205 million, up from its previous guidance between $160 – $180 million. Cognex Corporation (NASDAQ:CGNX) attributed the surge to faster-than-expected demand fulfillment in the quarter.
Separately, Cognex Corporation (NASDAQ:CGNX) also appeared in the second-quarter 2022 investor letter of asset management firm Baron Funds. Here’s what the firm said:
“We believe that Cognex is a unique, special company that has great growth prospects as its products are incorporated in more plants and processes across more end markets. The company has a fortress balance sheet, over $7/share in net cash, some of which was used for share repurchases in the quarter. Shares traded down to under 20 times projected earnings (though earnings are uncertain). We have owned the shares for over a decade, and the stock has appreciated over five times since our initial investment. There have been ups and downs, caused by product cycles or economic growth, but the company has always powered through, as we expect will be the case now as well.”
6. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 43
Shares of Western Digital Corporation (NASDAQ:WDC) hit a new 52-week low of $34.94 this morning after receiving a downgrade from Deutsche Bank. The research firm decreased its ratings for the data storage company from “Buy” to “Hold.”
Deutsche Bank analyst Sidney Ho thinks the company’s profit will miss management’s guidance due to weak demand. Ho lowered his price target for Western Digital Corporation (NASDAQ:WDC) from $56 per share to $40 per share.
In addition, Barclays also slashed its price target for Western Digital Corporation (NASDAQ:WDC) from $55 per share to $40 per share on Monday, September 19, 2022.
The revised price targets and recommendations came after the company’s senior management’s comments about the deteriorating business environment. Western Digital Corporation (NASDAQ:WDC) recently disclosed that it experienced a significant drop in NAND storage prices over the past month.
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Disclosure: None. 10 Trending Stocks on Tuesday is originally published on Insider Monkey.
