In this article, we discuss the 5 biggest gainers on Thursday. If you want to check out some more stocks gaining value today, go directly to 10 Biggest Gainers on Thursday.
5. Nordstrom, Inc. (NYSE:JWN)
Number of Hedge Fund Holders: 31
Shares of Nordstrom, Inc. (NYSE:JWN) moved up this morning after Jefferies turned bullish on the luxury department store chain. Jefferies analyst Ashley Helgans improved her ratings for Nordstrom from “Hold” to “Buy,” citing the company’s higher-income customer base.
Helgans thinks the company’s shoppers are relatively wealthier, giving Nordstrom, Inc. (NYSE:JWN) a structural edge during an economic slowdown. Helgans’ latest coverage is based on a survey indicating that 70 percent of millennials and Generation Z shoppers plan to refresh their wardrobe in the coming months. She also raised her price target for Nordstrom, Inc. (NYSE:JWN) from $21 per share to $24 per share.
4. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 63
CSX Corporation (NASDAQ:CSX) shares turned green this morning after leading U.S. railroad companies reached a tentative agreement with worker unions over higher wages and better working conditions.
The latest development also averted a potential strike planned for the weekend. Rail stocks, including CSX Corporation (NASDAQ:CSX), have consistently outperformed the S&P 500 in recent years. However, their growth decelerated amid lower shipping volumes and staff shortages this year.
Meanwhile, CSX Corporation (NASDAQ:CSX) also made an important announcement this morning. The company named Ford’s ex-president Joe Hinrichs as its new CEO. Hinrichs will replace current chief executive James Foote. CSX Corporation (NASDAQ:CSX) added that Foote would continue to offer his advisory services to the company till March 2023.
3. Humana Inc. (NYSE:HUM)
Number of Hedge Fund Holders: 69
Humana Inc. (NYSE:HUM) is next on the list of 5 Biggest Gainers on Thursday. Its stock rose nearly five percent in pre-market trading Thursday after the health insurer lifted its profit outlook for the full year.
Excluding nonrecurring items, Humana Inc. (NYSE:HUM) now expects adjusted earnings of about $25 per share for its fiscal 2022, up from its previous guidance of about $24.75 per share. The updated outlook represents a growth of 21 percent over last year. It is also above the consensus of $24.83 per share.
In addition, Humana Inc. (NYSE:HUM) also issued its mid-term adjusted earnings guidance of $37 per share for the fiscal year 2025. The company expressed confidence in delivering sustainable profit growth in the near and long term.
2. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 82
Shares of Danaher Corporation (NYSE:DHR) turned green before the opening bell today after the company decided to spin off its environmental & applied solutions (EAS) business.
The separation would help Danaher Corporation (NYSE:DHR) better focus on its life sciences and diagnostics segments. The EAS segment primarily specializes in water purification and product identification solutions. Danaher Corporation (NYSE:DHR) expects to complete the spin-off by the end of 2023.
Separately, investment management firm Weitz Investment Management discussed Danaher Corporation (NYSE:DHR) in its second-quarter 2022 investor letter, stating:
“Consistent with that approach, portfolio activity among our long holdings tilted toward purchases. We added to almost half our holdings by varying degrees, and we were pleased to initiate new positions in Danaher (NYSE:DHR). Danaher is a provider of instruments and diagnostic tools to medical, life science, and other desirable end-markets worldwide. The business generate significant free cash flow, possess strong competitive positions, and have excellent management teams with demonstrated acquisition records.”
1. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 95
Shares of Netflix, Inc. (NASDAQ:NFLX) rose over four percent this morning after Evercore ISI improved its ratings for the video-streaming giant from “In Line” to “Outperform.” Analyst Mark Mahaney thinks the company’s revenue would get a lift from its ad-supported tier.
Mahaney also pointed towards an additional growth from password sharing fees. He remains bullish on the global video-streaming market. He also raised his price target for Netflix, Inc. (NASDAQ:NFLX) from $245 per share to $300 per share.
Meanwhile, Netflix, Inc. (NASDAQ:NFLX) appeared in the second-quarter 2022 investor letter of investment management firm L1 Capital. Here’s what the firm said:
“While it seems an eternity ago, in April Netflix, Inc. (NASDAQ:NFLX) reported Q1 2022 results and gave forward guidance which flashed many red flags. Not only were subscription numbers (and forward guidance) well below expectations, but management also gave new disclosure on the massive extent of password sharing which raises concerns that Netflix is much more mature than we had previously considered, constraining future growth. Management also haphazardly announced it will introduce an advertising-supported subscription tier, albeit currently lacking the necessary capabilities to do so. Despite continuing to produce world-leading content, we have lost confidence in management’s ability to respond to increased competition and a more challenging operating environment. We sold our entire investment in Netflix immediately post Q1 2022 results. Currently we do not consider Netflix to meet our stringent quality criteria to be considered as a potential investment in the Fund.”
You can also take a peek at Best Self-Driving Stocks To Invest In and 10 Best Cyclical Stocks for Inflation.
