In this article, we discuss the 5 stocks Reddit is piling into before earnings. If you want to read our detailed analysis of these stocks, go directly to 10 Stocks Reddit is Piling Into Before Earnings.
5. Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
Number of Hedge Fund Holders: 34
Expected Earnings Date: August 6 (Before Market Open)
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is placed fifth on our list of 10 stocks Reddit is piling into before earnings. The firm is based in Florida and markets cruises. In earnings results for the first quarter, posted on May 6, the firm reported earnings per share of -$2.03, beating market estimates by $0.04. The company will announce earnings results for the second quarter before the opening of the market on August 6. The stock stands to gain as the vaccinations allow for normal business to resume in the United States.
On June 17, investment advisory JPMorgan maintained an Overweight rating on Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) stock and raised the price target to $38 from $35, noting the positive booking momentum and pricing upside as growth catalysts.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Zimmer Partners is a leading shareholder in Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) with 4.7 million shares worth more than $130 million.
Brown Capital Management, in its Q4 2020 investor letter, mentioned Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH). Here is what the fund has to say in its letter:
“Norwegian Cruise Line Holdings (NCLH) is a diversified operator of leading global cruise lines spanning market segments from contemporary to luxury under the Norwegian Cruise Line, Oceanic Cruises and Regent Seven Seas Cruises brands. These brands operate a combined 28 ships. Norwegian was eliminated from the portfolio, as we no longer believe it meets our definition of an Exceptional Growth Company, as discussed in our first quarter letter. There are still many unknowns as to when we will see a fully normalized operating environment with a high degree of confidence.”
4. Wayfair Inc. (NYSE: W)
Number of hedge fund holders: 37
Expected Earnings Date: August 5 (Before Market Open)
Wayfair Inc. (NYSE: W) is a Boston-based firm in the ecommerce business that concentrates on home sector products. It is ranked fourth on our list of 10 stocks Reddit is piling into before earnings. It has a market cap of over $25 billion and posted more than $14 billion in revenue last year. The company will announce the second quarter earnings before the opening of the market on August 5. The stock has soared over the past year as online shopping gains momentum around the world.
On July 9, investment advisory Jefferies reiterated a Buy rating on Wayfair Inc. (NYSE: W) stock and raised the price target to $355 from $350, raising the second quarter gross margin percentage forecast in the ratings update.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Spruce House Investment Management is a leading shareholder in Wayfair Inc. (NYSE: W) with 4.8 million shares worth more than $1.5 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Wayfair Inc. (NYSE: W) was one of them. Here is what the fund said:
“During the quarter, Wayfair Inc. was a material contributor to the portfolio after reporting strong earnings, increased revenue, positive operating margins, and strong free cash flow generation. The company’s long-term trajectory is positive, and we are pleased to own this business.”
3. Moderna, Inc. (NASDAQ: MRNA)
Number of Hedge Fund Holders: 39
Expected Earnings Date: August 5 (Before Market Open)
Moderna, Inc. (NASDAQ: MRNA) is a Cambridge-based biotechnology company that concentrates on the development of therapies and vaccines based on messenger RNA. It is placed third on our list of 10 stocks Reddit is piling into before earnings. The company will unveil earnings for the second quarter before the opening of the market on August 5. On August 3, the share price of the firm jumped close to 12% after it announced it had obtained regulatory approval for mRNA-1345, a drug for treating respiratory syncytial virus.
On July 15, investment advisory Jefferies kept a Hold rating on Moderna, Inc. (NASDAQ: MRNA) stock but raised the price target to $250 from $170, backing the firm to beat market expectations for earnings in the second quarter.
At the end of the first quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Moderna, Inc. (NASDAQ: MRNA), down from 41 in the preceding quarter worth $1.4 billion.
In its Q2 2021 investor letter, Baillie Gifford, an asset management firm, highlighted a few stocks and Moderna, Inc. (NASDAQ: MRNA) was one of them. Here is what the fund said:
“Among the top contributors to Fund performance in the second quarter was Moderna. Moderna has just reported its first profitable quarter in the company’s history – net income for the most recent quarter was $1.2 billion. It reported revenue of $1.9 billion, an impressive increase compared to $8 million a year ago, driven by the sales of its Covid-19 vaccine. Moderna is expecting to deliver up to 1 billion vaccine doses in 2021 and is in discussions to increase global supply to governments around the world. Our long-term focus remains on the transformational potential of Moderna’s technology and its ability to address different diseases.”
2. Penn National Gaming, Inc. (NASDAQ: PENN)
Number of Hedge Fund Holders: 42
Expected Earnings Date: August 5 (Before Market Open)
Penn National Gaming, Inc. (NASDAQ: PENN) is ranked second on our list of 10 stocks Reddit is piling into before earnings. The company is based in Pennsylvania and owns and manages gambling and racing properties. It will release earnings for the second quarter before the opening of the market on August 5. In earnings results for the first quarter, posted on May 6, the firm reported earnings per share of $0.55, beating market estimates by $0.27. The revenue over the period was $1.2 billion, up 13% year-on-year.
On July 28, investment advisory Goldman Sachs maintained a Buy rating on Penn National Gaming, Inc. (NASDAQ: PENN) stock but lowered the price target to $124 from $149, underlining that the update represented share shifts and mark-to-market.
At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth 907 million in Penn National Gaming, Inc. (NASDAQ: PENN), up from 41 in the previous quarter worth $1.3 billion.
In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Penn National Gaming, Inc. (NASDAQ: PENN) was one of them. Here is what the fund said:
“Shares of regional casino operation Penn National Gaming, Inc. increased in the quarter on strong share gains in the online sports betting and gaming markets in Michigan and the opening of the large Illinois online sports betting market. Strong sequential growth in revenue and sustained margin improvement in its brick and mortar operations also helped boost the share price. We think these positive developments will lead to improvements in the company’s balance sheet and its EBITDA to free cash flow conversion.”
1. Cloudflare, Inc. (NYSE: NET)
Number of Hedge Fund Holders: 45
Expected Earnings Date: August 5 (After Market Close)
Cloudflare, Inc. (NYSE: NET) is placed first on our list of 10 stocks Reddit is piling into before earnings. The company owns and runs a cloud platform for business clients. It is headquartered in California. The company will announce earnings for the second quarter after the close of the market on August 5. In the first quarter, the firm beat market expectations in earnings per share and revenue. It has a market cap of over $36 billion and posted more than $430 million in revenue last year.
On July 13, investment advisory assumed coverage of Argus Cloudflare, Inc. (NYSE: NET) stock with a Buy rating and a price target of $125, noting that the firm offered a unique set of services critical to enterprise clients.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm SRS Alkeon Capital Management is a leading shareholder in Cloudflare, Inc. (NYSE: NET) with 1.6 million shares worth more than $17 million.
In its Q4 2020 investor letter, Alger Mid Cap Focus Fund, an asset management firm, highlighted a few stocks and Cloudflare, Inc. (NYSE: NET) was one of them. Here is what the fund said:
“Cloudflare. Inc. provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic. Today. over 15% of global internet requests go through Cloudflare. Cloudflare’s serverless network design allows this global network to be a key component layer as new developments for edge cornputing. 5G and Internet of Things increase the importance of secure. reliable edge networks. Cloudflare stock outperformed in the fourth quarter following the announcement of Cloudflare One, a cloud-bas. network-as-a-service platform designed to replace the traditional enterprise network infrastructure. The Cloudflare One solution merges existing Cloudflare access and security solutions along with new enterprise-specific features into a unified Zero Trust network that can be managed through a single “pane of glass.” or display screen. With the rapid shift to remote work caused by the pandemic, this product increases Cloudflare’s potential for winning business from enterprise customers seeking to adapt to this new business environment.
While Cloudflare One adoption is still early. Cloudflare has already started to demonstrate an improved ability to sell to large customers. When discussing its third quarter results. Cloudflare said that it is continuing to sign up larger enterprise customers. including its first client to generate more than $10 million in annual recurring revenue. Cloudflare has just started to better monetize its more than 100.000 paying customer base. which along with continued product innovation, gives the company strong growth potential.”
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