In this article, we will discuss some of the notable stocks trending today. To take a look at some more stocks that are in the news, go to Why These 5 Stocks Are Trending on Tuesday.
Following a short respite, investors returned to selling shares on Tuesday on concerns of a recession. The S&P 500 index, NASDAQ 100 Index, and DOW 30 Index are all down 1.17%, 2.62%, and 0.30% as of 2:50 PM ET. Popular stocks such as Snap Inc. (NYSE:SNAP), Roblox Corporation (NYSE:RBLX), and Abercrombie & Fitch Co. (NYSE:ANF) are weighing the stock market down today.
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Let’s look at why these stocks are trending today and discuss how hedge funds are positioned in them.
10. Insulet Corporation (NASDAQ:PODD) has surged 8.02% as of 11:01 AM ET following news that the company might be acquired by Dexcom Inc. The deal is expected to entail a collaborative merger as both companies manufacture devices related to diabetes. As Dexcom sells glucose monitors and Insulet Corporation (NASDAQ:PODD) manufactures pumps that deliver insulin, the two companies want to establish a partnership in which Insulet Corporation’s (NASDAQ:PODD) delivery system can cater to Dexcom’s glucose monitor so that insulin is automatically regulated.
ClearBridge Investments shared its stance on Insulet Corporation (NASDAQ:PODD) in its Q1 2022 investor letter. Here’s what the firm said:
“Health care has always been a core foundation of the portfolio and we have been diversifying our health care exposure to include services and solutions beyond our traditional overweight to biopharmaceuticals and managed care. We first purchased Insulet (NASDAQ:PODD) , a leading provider of insulin pumps for diabetes patients, in the fourth quarter of 2021, and we have aggressively added to the position since then. The company is currently the only meaningful manufacturer of patch pumps, the preferred form factor for many patients as compared to traditional tubed pumps. We believe Insulet has a long runway for growth given its large and underpenetrated market, which is only one-third penetrated in Type 1 diabetes and low-single-digit penetrated in the insulin- intensive Type 2 diabetes population. Additionally, we see the launch of the company’s next generation offering, Omnipod 5, which received FDA clearance in January, as an accelerant to growth. Insulet has strong gross margins and is profitable today, though we still see room for significant operating margin expansion ahead.”
As of Q1 2022, 40 hedge funds held a position in Insulet Corporation (NASDAQ:PODD).
9. Evercore Inc. (NYSE:EVR) has risen 3% as of 10:01 AM ET after the company announced that Herb Yeh had joined the Firm’s Investment Banking business as a Senior Managing Director. Yeh comes as a highly seasoned financial advisor who specializes in tech banking and would be overseeing Evercore Inc.’s (NYSE:EVR) technology segment. Yeh was previously serving as the Global Co-Head of Technology Investment Banking at Citi.
Out of the 912 elite funds being tracked by Insider Monkey as of Q1 2022, 30 funds held a stake in Evercore Inc. (NYSE:EVR).
8. VMware, Inc. (NYSE:VMW) has risen 1% as of 10:05 AM ET after reports that Broadcom (AVGO) is valuing VMware, Inc. (NYSE:VMW) for a possible acquisition at around $60 billion. This translates into a per-share value of $140. Broadcom is looking to acquire VMware, Inc. (NYSE:VMW) in order to diversify its revenue streams from software products and semiconductors.
Here’s what ClearBridge Investments said about VMware, Inc. (NYSE:VMW) in its Q3 2021 investor letter.
“To make room for Netflix and better concentrate the Strategy in our highest-conviction names, we exited positions in software makers VMware. VMware, best known for its system visualization software, is in the earlier stages of an on-premise to cloud transition that could add volatility to growth and cash flow in coming years. At the same time, the company also recently announced several key leadership changes and will have higher financial leverage following the upcoming spinoff from Dell — expected in the fourth quarter.”
Silver Lake Partners was the leading investor in VMware, Inc. (NYSE:VMW), with a stake worth over $4.7 billion during Q1 2022. Overall, 52 hedge funds held a stake in VMware, Inc. (NYSE:VMW) as of the first quarter of 2022.
7. AutoZone, Inc. (NYSE:AZO) has risen 4.6% as of 12:50 PM ET after the auto-parts retailer reported strong same-store sales growth during the third fiscal quarter, despite a challenging economic environment. AutoZone, Inc. (NYSE:AZO) revealed that the company’s commercial sales growth increased to 26%, surpassing expectations. Moreover, domestic sales rose by 2.6% for stores that were opened only a year ago.
Altron Capital Management shared its stance on AutoZone, Inc. (NYSE:AZO) in its Q4 2021 investor letter. Here’s what the firm said:
“AutoZone has been a winner since we built a position in the company last quarter. Given the current supply challenges in the automotive sector, we believe the long-standing trend of America’s aging automotive fleet will continue for the foreseeable future with AutoZone as a primary beneficiary.”
At the end of Q1 2022, AutoZone, Inc. (NYSE:AZO) was held by 38 hedge funds.
6. Best Buy Co., Inc. (NYSE:BBY) is down 0.83% after the company reported a decline of 8% in same-store sales in Q1 FY22. Matt Bilunas, the company’s CFO, attributed the fall in sales to lower demand for home theater and computers in the current quarter. Comparable sales for services also saw a decline of 12% as customers opted for Best Buy Co., Inc.’s (NYSE:BBY) membership program that included the installation and warranties in the annual fee. Best Buy Co., Inc.’s (NYSE:BBY) stock has declined 29% YTD, underperforming the S&P 500’s decline of 17% during the same period.
As of Q1 2022, Best Buy Co., Inc. (NYSE:BBY) was held by 25 hedge funds.
In addition to Best Buy Co., Inc. (NYSE:BBY), notable stocks such as Snap Inc. (NYSE:SNAP), Roblox Corporation (NYSE:RBLX), and Abercrombie & Fitch Co. (NYSE:ANF) are trending today.
Click to continue reading and see Why These 5 Stocks Are Trending on Tuesday.
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Disclose. None. Why These 10 Stocks Are Trending on Tuesday is originally published on Insider Monkey.
