5 Trending Stocks to Watch on Monday

In this article, we discuss the 5 trending stocks to watch on Monday. If you want to see some more companies on the list, go directly to 10 Trending Stocks to Watch on Monday.

5. Paramount Global (NASDAQ:PARA)

Number of Hedge Fund Holders: 42

Shares of Paramount Global (NASDAQ:PARA) hit a new 52-week low of $17.91 in the mid-day trading session on Monday. The drop came after Wells Fargo analyst Steven Cahall downgraded the mass media company from “Equal-Weight” to “Underweight.”

Cahall pointed towards uncertain direct-to-consumer guidance and risk to the company’s ad sales. He also trimmed his price target for Paramount Global (NASDAQ:PARA) from $19 per share to $13 per share, citing a tougher period for linear media services in the near future.

Paramount Global (NASDAQ:PARA) shares are now down about 43 percent on a year-to-date basis, including the latest drop.

4. Emerson Electric Co. (NYSE:EMR)

Number of Hedge Fund Holders: 45

Emerson Electric Co. (NYSE:EMR) caught investors’ attention this morning after announcing better-than-expected financial results for its fiscal fourth quarter. The diversified industrial company reported adjusted earnings of $1.53 per share, topping estimates of $1.38 per share.

Revenue for the quarter rose 8 percent on a year-over-year basis to $5.4 billion, ahead of the consensus of $5.33 billion. Emerson Electric Co. (NYSE:EMR) also released its region-wise sales performance. Revenue from the Americas jumped 17 percent, Europe sales increased 3 percent and China sales rose 9 percent in the quarter. In comparison, sales from Asia, Middle East & Africa increased 7 percent.

Among other updates, Emerson Electric Co. (NYSE:EMR) said it is selling controlling stakes in its climate-technologies division to Blackstone Inc in a transaction valued at $14 billion.

3. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 45

Shares of Caterpillar Inc. (NYSE:CAT) slightly moved down on Monday morning after UBS analyst Steven Fisher cut his ratings for the construction equipment maker from “Buy” to “Neutral.”

Fisher believes the company’s valuation offers a more balanced risk/reward at the moment. On the positive side, he increased his price target for Caterpillar Inc. (NYSE:CAT) from $225 per share to $230 per share.

The latest coverage came just days after Caterpillar Inc. (NYSE:CAT) surpassed profit and sales expectations for the third quarter. The Illinois-based company reported adjusted earnings of $3.95 per share on revenue of $15 billion for the period.

Speaking on the results, CEO Jim Umpleby said:

“I’d like to thank our global Caterpillar team for delivering another quarter of double-digit top-line growth and record adjusted profit per share. Our team remains focused on serving our customers as we continued to see healthy demand across most of our end markets during the third quarter.”

2. Global Payments Inc. (NYSE:GPN)

Number of Hedge Fund Holders: 57

Shares of Global Payments Inc. (NYSE:GPN) plummeted more than seven percent after the opening bell today. The drop came after the financial technology company delivered mixed results for the third quarter.

Global Payments Inc. (NYSE:GPN) earned $2.48 per share on an adjusted basis, up from $2.18 per share in the year-ago period but marginally below the consensus of $2.49 per share. On the bright side, adjusted revenue for the quarter increased 3 percent on a year-over-year basis to $2.06 billion, beating the expectations of $2.04 billion.

Looking forward, Global Payments Inc. (NYSE:GPN) continues to expect adjusted earnings in the range of $9.53 – $9.75 per share and adjusted revenue growth between 10 – 11 percent for fiscal 2022.

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Apple Inc. (NASDAQ:AAPL) made its way into the headlines today after multiple reports suggested that iPhone production could take a hit due to increasing coronavirus restrictions in China.

One of the reports stated that iPhone production could drop by up to 30 percent at Foxconn’s biggest iPhone manufacturing plant located in Zhengzhou. Apple Inc. (NASDAQ:AAPL) shares slipped nearly two percent following the news.

Apple Inc. (NASDAQ:AAPL) largely relies on Foxconn for producing iPhones. Meanwhile, Foxconn is reportedly planning to increase iPhone production at its Shenzhen facility to make up for the shortfall at Zhengzhou plant.

Separately, investment management firm Wedgewood Partners discussed Apple Inc. (NASDAQ:AAPL) in its Q3 2022 investor letter, stating:

“Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

You can also take a peek at 10 Best Dividend Stocks for Growth and 12 Best Consumer Staple Stocks.

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