We recently published a list of 10 Stocks Grow Firmer Despite Mixed Market Sentiment. In this article, we are going to take a look at where Coty Inc. (NYSE:COTY) stands against other stocks that grow firmer despite mixed market sentiment.
The stock market kicked off the first trading day of the week on a lackluster note, with major indices finishing mixed as it struggled to rebound from Friday’s bloodbath.
The Dow Jones was the sole gainer among the main indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.
Meanwhile, ten companies registered strength, albeit posting only modest gains. This article details the reasons behind their performance.
To come up with Monday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A close-up of a woman’s face wearing a beauty product, highlighting the company’s range of luxury items.
Coty Inc. (NYSE:COTY)
Coty grew its share prices by 4.9 percent on Monday to end at $5.99 apiece, with investors discounting news of a rating downgrade from an investment banking company.
On Monday, Piper Sandler downgraded its price target for COTY to $8 from $9 previously while maintaining an ‘overweight’ rating on the stock. The new price target represents a 33.5-percent premium from its latest closing price.
The lower target came after a disappointing 2024 earnings performance and a pessimistic outlook guidance.
In its latest earnings release, COTY registered an 83-percent lower net income for the past quarter, ending at $30.6 million versus the $186 million year-on-year, pulling down its net profit from July to December by 38 percent to $121.3 million from $196.2 million year-on-year.
Net revenues for the quarter dipped by 3 percent to $1.67 billion from $1.73 billion, while six-month net revenues were flat at $3.3 billion.
Given the dismal performance, COTY cut its annual profit forecast primarily due to expectations of lower demand for cosmetics products.
Overall, COTY ranks 3rd on our list of stocks that grow firmer despite mixed market sentiment. While we acknowledge the potential of COTY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as COTY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
