In this article, we will discuss some of the popular stocks trending this week. To take a look at some more stocks that are in the news, go to 5 Trending Stocks This Week.
US equity markets are in the green as of August 8 as we head towards the end of the earnings season. The following week will see data regarding inflation levels being published. The Consumer Price Index (CPI) will be reported on Wednesday, and investors are expecting a slight decline in the rate due to lower fuel prices in July. Analysts are expecting CPI to be posted at 8.7% for July as opposed to 9.1% a month earlier.
The S&P 500 Index has closed in the green for the past three consecutive weeks. Notable companies such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Tesla, Inc. (NASDAQ:TSLA) are amongst the stocks trending this week.
Let’s discuss why these stocks are trending this week and see how hedge funds are positioned in them.
10. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 15
Bed Bath & Beyond Inc. (NASDAQ:BBBY) has rocketed 40.07% this week. The New Jersey-based operator of bedding, bathroom, kitchen, and home décor retailers, is looking to close in the green for the tenth consecutive day.
Experts think that Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock is experiencing a short squeeze as the company’s short interest ratio increased to an 18-month high of 46.1% as of July 31. On August 5, Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock gained 32% as 52.76 million shares exchanged hands without the presence of any significant news in the market. Bed Bath & Beyond Inc. (NASDAQ:BBBY) was one of the most mentioned stocks on Reddit’s WallStreetBets forum on August 8.
Bed Bath & Beyond Inc. (NASDAQ:BBBY) was discussed in the Q2 2022 investor letter of Miller Value Partners. Here’s what the firm said about the company:
“Bed Bath & Beyond 5.165% 08/2044declined 67.4% in the period. Bed Bath & Beyond reported 4Q21 sales of $2.05 billion, down 22% Y/Y, missing consensus of $2.08 billion. The company lost $0.92 per share in the quarter, down from 4Q20 adjusted EPS of $0.40, below analyst expectations for EPS of $0.03. Management noted supply chain disruptions and the Omicron variant led to inventory availability challenges, which had an estimated sales impact of $175 million, or 8.5% of 4Q21 net sales, and a 400 basis points (bps) Y/Y contraction in 4Q21 adjusted gross margin to 28.8%, driven by product cost increases and higher than anticipated freight and shipping costs. Additional headwinds in the quarter included general weakness in the retail segment, highlighted by big earnings misses from Walmart and Target, along with Moody’s downgrading Bed Bath’s corporate family rating from B1 to B2. The ratings agency cited increased execution risk of the company’s strategic turnaround initiatives and ongoing supply chain issues weighing on the company’s market share and profitability going forward as the main drivers for the downgrade. However, Moody’s maintained a stable outlook for the retailer due to the financial flexibility provided by the company’s liquidity position and low level of funded debt.”
Bed Bath & Beyond Inc. (NASDAQ:BBBY) was held by 15 hedge funds at the end of Q1 2022.
9. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 35
First Solar, Inc. (NASDAQ:FSLR) has risen 9.98% this week after the Tempe, Arizona-based provider of photovoltaic (PV) solar solutions was upgraded from a Neutral to an Overweight rating by Mark Strouse at JPMorgan. The analyst also revised the price target on First Solar, Inc. (NASDAQ:FSLR) from $83 to $126. Strouse highlighted the passing of the Inflation Reduction Act as the biggest policy step in the history of the US in accelerating the transition from conventional to renewable sources of energy. The analyst thinks that First Solar, Inc. (NASDAQ:FSLR) is in the best position to leverage the bill. Although there are chances that the bill may be amended when it is presented in the House of Representatives, it is highly unlikely that the salient features of the bill would be changed.
Beech Hill Partners was the leading hedge funds investor in First Solar, Inc. (NASDAQ:FSLR) during Q2 2022.
8. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 36
Palantir Technologies Inc. (NASDAQ:PLTR) has plummeted 14.07% this week after the Denver, Colorado-based data analytics entity reported mixed Q2 2022 results and provided weak guidance for FY22.
Palantir Technologies Inc. (NASDAQ:PLTR) reported an adjusted loss per share of one cent, as opposed to the analysts’ forecast of a profit of three cents per share. In contrast, Palantir Technologies Inc. (NASDAQ:PLTR) saw its revenue increase by 26% YoY to $473 million, outperforming the consensus estimate of $471.7 million.
For Q3 2022, the company anticipates revenue to be in the range of $474 million – $475 million, lower than the forecast of $508.23 million. Furthermore, for FY22, Palantir Technologies Inc. (NASDAQ:PLTR) is expecting revenue of $1.9 billion, which also fell short of analysts’ forecast of $1.98 billion.
As of Q1 2022, 36 funds reported owning a stake in Palantir Technologies Inc. (NASDAQ:PLTR).
7. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 45
Barrick Gold Corporation (NYSE:GOLD) is up 3.91% this week after the Canadian miner reported better-than-expected results for Q2 2022.
Barrick Gold Corporation (NYSE:GOLD) reported revenue and adjusted EPS of $2.86 billion and 24 cents, respectively, which outperformed the analysts’ forecast of $2.85 billion and 22 cents. The company also benefitted from higher copper production during the quarter. Barrick Gold Corporation (NYSE:GOLD) anticipates meeting the annual guidance for copper and gold production. However, CEO Mark Bristow highlighted that the supply of copper would not be able to keep up with the increased demand for the metal as heavy metals are an integral part of clean energy initiatives.
Here’s what ClearBridge Investments said about Barrick Gold Corporation (NYSE:GOLD) in its Q2 2022 investor letter:
“In addition to Iberdrola, new purchases among structural growers during the quarter included Canadian mining company Barrick Gold Corporation (NYSE:GOLD), which is seeing operating improvements in its business. The company has aggressively delevered its balance sheet and reduced capex spending to a lower level, directing its healthy free cash flow to dividends and buybacks.’’
6. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders:46
Coinbase Global, Inc. (NASDAQ:COIN) has surged 9.26% this week after notable cryptocurrencies like Bitcoin USD (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) are rallying following a positive job report for July 2022. In the last 24 hours, Bitcoin and Ethereum have gained 4.4% and 6.1%, respectively.
Coinbase Global, Inc. (NASDAQ:COIN) soared last week when BlackRock, Inc. (NYSE:BLK) entered into a partnership with the company. The deal would allow BlackRock, Inc.’s (NYSE:BLK) institutional investors to buy and sell Bitcoins on the cryptocurrency exchange platform. Following this development, Carlton Lai at Daiwa gave Coinbase Global, Inc. (NASDAQ:COIN) stock a Buy rating with a target price of $100 in a note issued to investors on August 8.
Rowan Street Capital LLC shared its stance on Coinbase Global, Inc. (NASDAQ:COIN) in its Q2 2022 investor letter. Here’s what the firm said:
“The mentality of a passionate Founder/CEO drives a completely different thought process and decision-making that makes all the difference. This is a quote by Brian Armstrong, Founder and CEO of Coinbase (NASDAQ:COIN):
‘I can speak with some authority and say we are not going to do that because this is not why I started the company – I don’t have to give any other justification. Rather than the professional CEO that comes in that is accountable to Wall Street and quarterly earnings may start thinking about the company differently. One of the most scarce things in companies today is risk tolerance. For example, take Tesla vs. Waymo. Tesla launched self-driving cars while Google didn’t. The reason is the founder-CEO (Elon Musk) said that I care enough about the mission that we are ready and we are gonna go for it. Whether a professional CEO is thinking about his/her career trajectory, the founder CEO doesn’t care about the next job and only cares about the mission.’”
In addition to Coinbase Global, Inc. (NASDAQ:COIN), popular stocks such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA) are also trending this week.
Click to continue reading and see 5 Trending Stocks This Week.
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Disclose. None. 10 Trending Stocks This Week is originally published on Insider Monkey.
