In this article, we discuss the top 5 stocks to watch today. If you want to see some more companies trending on Tuesday, go directly to Top 10 Stocks to Watch Today.
5. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 59
Shares of Enphase Energy, Inc. (NASDAQ:ENPH) rose over five percent this morning after the energy technology company announced that it has extended its partnership with renewable energy firm BayWa r.e.
According to the terms of the agreement, BayWa r.e. will distribute Enphase Energy’s inverters and batteries in Germany and Benelux. Enphase Energy, Inc. (NASDAQ:ENPH) expressed its pleasure over the latest collaboration, saying the installer customers in the region will now have more access to its microinverters and battery systems.
Despite macro headwinds, Enphase Energy, Inc. (NASDAQ:ENPH) shares have performed well so far in 2022. The stock has jumped nearly 60 percent on a year-to-date basis.
4. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 59
Shares of NextEra Energy, Inc. (NYSE:NEE) advanced over three percent in mid-day trading Tuesday after Morgan Stanley upgraded the producer of wind and solar energy from “Hold” to “Buy.”
Analyst David Arcaro thinks NextEra Energy, Inc. (NYSE:NEE) is set to benefit from the recently approved Inflation Reduction Act, which includes tax credits for renewable power generation. He also increased his price target for NextEra Energy, Inc. (NYSE:NEE) from $94 per share to $99 per share.
Separately, global asset manager ClearBridge Investments also discussed NextEra Energy, Inc. (NYSE:NEE) in its second-quarter 2022 investor letter, stating:
“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world that energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.”
3. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 63
FedEx Corporation (NYSE:FDX) is next on the list of top 5 stocks to watch today. The provider of express and freight delivery services received a downgrade from Citi this morning. As a result, its shares slipped over 2 percent before the opening bell on Tuesday.
Citi analyst Christian Wetherbee lowered his ratings for FedEx Corporation (NYSE:FDX) from “Buy” to “Neutral,” citing declining freight volumes across various transportation modes. He also cut his price target for FedEx from $270 per share to $225 per share.
Wetherbee was moved by the macro challenges that could hurt the growth of FedEx Corporation (NYSE:FDX) this year. He expects weak truck freight traffic in the second half of the year.
2. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 65
CVS Health Corporation (NYSE:CVS) has decided to acquire Signify Health in a cash transaction valued at roughly $8 billion. CVS shares slipped over 1 percent in mid-day trading Tuesday following the news.
Signify is engaged in providing healthcare services to millions of patients through a network of 10,000 doctors in the U.S. CVS Health Corporation (NYSE:CVS) expects to close the deal by the second half of 2023.
Speaking on the development, CEO of CVS Health Corporation (NYSE:CVS), Karen Lynch, said:
“Signify Health will play a critical role in advancing our health care services strategy and gives us a platform to accelerate our growth in value-based care. This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) came into the limelight this morning following reports that the company is trying to cut the cost of batteries in its electric vehicles (EVs) using dry-coating technology.
The technology could reportedly help Tesla, Inc. (NASDAQ:TSLA) in reducing the cost of a Model Y battery by 50 percent. The dry-coating technique is intended for developing bigger cells in the company’s 4680 battery.
However, Tesla, Inc. (NASDAQ:TSLA) would reportedly need some time to scale up the battery production using this technique. Battery is one of the most expensive components used in an electric vehicle. Industry experts believe Tesla, Inc. (NASDAQ:TSLA) could significantly improve its profit margins if it succeeds in decreasing battery costs.
You can also take a peek at 10 Social Media Stocks Getting Hammered and 10 Best Cyclical Stocks for Inflation.
