In this article, we discuss the 5 trending stocks on Tuesday. If you want to see some more stocks that made their way into the headlines today, go directly to 10 Trending Stocks on Tuesday.
5. Olin Corporation (NYSE:OLN)
Number of Hedge Fund Holders: 43
Shares of Olin Corporation (NYSE:OLN) slipped over five percent this morning after the chemical products distributor trimmed its EBITDA outlook for the current quarter, citing weak demand.
Olin Corporation (NYSE:OLN) now expects adjusted EBITDA in the range of $530 – $550 million for the third quarter, down from its previous projection of roughly $618 million.
Discussing the revised outlook, CEO of Olin Corporation (NYSE:OLN), Scott Sutton, said in a statement:
“We have seen global economic conditions worsen faster than expected with an accelerated deterioration in both European and North American demand particularly in epoxy and vinyls intermediates, which has been aggravated by increased Chinese exports precipitated by continuing weak Chinese domestic demand.”
4. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 46
Shares of Ford Motor Company (NYSE:F) fell over eight percent after the opening bell on Tuesday. The drop came after the Michigan-based automaker warned that higher costs have significantly dragged down its operating profit in the current quarter.
Ford Motor Company (NYSE:F) now anticipates adjusted EBIT in the range of $1.4 – $1.7 billion for the third quarter, well below analysts’ average estimate of $2.9 billion.
Nevertheless, Ford Motor Company (NYSE:F) reaffirmed its earnings outlook of $11.5 – $12.5 billion for the full year. The company plans to provide a detailed financial outlook along with its quarterly report next month.
Ford Motor Company (NYSE:F) is the latest company to blame macroeconomic headwinds for hurting its growth. Several companies such as FedEx and McDonald’s have already pointed towards weakening demand due to inflationary pressure.
3. Change Healthcare Inc. (NASDAQ:CHNG)
Number of Hedge Fund Holders: 53
Change Healthcare Inc. (NASDAQ:CHNG) came into the spotlight this morning after a federal judge approved UnitedHealth Group’s plan to acquire Change Healthcare.
UnitedHealth initially decided to buy Change Healthcare Inc. (NASDAQ:CHNG) last year in January. The transaction was expected to close by the end of 2021. But it got delayed after Justice Department filed a suit to block the acquisition over competition concerns.
However, U.S. district judge Carl Nichols refused Justice Department’s request to block the deal yesterday. The ruling sent Change Healthcare Inc. (NASDAQ:CHNG) shares to a new 52-week high of $27.27 this morning.
2. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 72
Shares of NIKE, Inc. (NYSE:NKE) slid over three percent in mid-day trading Tuesday after Barclays lowered its ratings for the Oregon-based sportswear company from “Overweight” to “Equal Weight.”
Analyst Adrienne Yih was moved by margin pressure, excess inventory and weak demand. She also pointed towards a slower-than-expected recovery in China. Yih lowered her price target for NIKE, Inc. (NYSE:NKE) from $125 per share to $110 per share.
The latest downgrade came just ahead of the company’s Q1 earnings. NIKE, Inc. (NYSE:NKE) is scheduled to release its quarterly results next week. Yih thinks the company would likely meet expectations for the quarter.
1. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 97
Share of PayPal Holdings, Inc. (NASDAQ:PYPL) fell more than three percent this morning after Susquehanna analyst James Friedman downgraded the digital payments giant from “Positive” to “Neutral.”
Friedman referred to the higher costs associated with the company’s rapidly growing payment solutions platform Braintree. The analyst thinks Braintree could weigh on PayPal’s overall results in the coming quarters. He also trimmed his price target for PayPal Holdings, Inc. (NASDAQ:PYPL) from $115 per share to $110 per share.
Meanwhile, asset management firm Mayar Capital also mentioned PayPal Holdings, Inc. (NASDAQ:PYPL) in its second-quarter 2022 investor letter, stating:
“This quarter, we bought shares in PayPal (NASDAQ:PYPL), the payments platform. PayPal has been one of the more high-profile victims of the market’s brutal ruthlessness over the past few months, and the stock fell by over two thirds between its peak in July to the beginning of March this year. As we progressed PayPal through the Mayar Checklist Process, we identified a business with a leadership position in a structurally growing market.
The company benefits from certain network effects, and faces several competitive threats at the same time. As the business profited from the move to online retail during the pandemic, as well as from the stimulus cheques handed out in the US, the stock price soared to absurd levels. As so often happens, however, the market had overcorrected by February and this quarter was offering prospective shareholders prices that assumed essentially zero growth in the business. When life gives you irrational sellers, make lemonade!”
You can also take a peek at 10 Best Media Stocks To Buy and 10 Best Cyclical Stocks for Inflation.
