Broader indices haven’t been performing very well since the Fed’s not so surprise revelation about the number of expected cuts in 2025. Nevertheless, several stocks on Thursday posted notable gains. Let’s take a look:
10. Summit Therapeutics Inc. (SMMT)
Shares of Summit Therapeutics (SMMT) on Thursday closed higher by 8.36 percent at $18.40 apiece as traders took heart from news that the company—in partnership with Chinese biotech Akeso—is developing a lung cancer treatment drug called ivonescimab, in hopes of bringing the lung cancer treatment drug to the market outside of Asia.
Investor optimism was also fueled by reports that various institutional investors hiked their stake in the company, including Baker BROS Advisors LP, abrdn plc, FMR LLC, and Charles Schwab Investment Management Inc.
A number of research analysts also expressed confidence in the company’s stock performance, with JMP Securities setting a “market outperform” rating and a $32 price target for the company.
Summit Therapeutics also received a “buy” rating from HC Wainwright on Monday. In its research report, the investment banking services firm set a whopping $44 target on Summit Therapeutics’ price.
9. Accenture Plc (ACN)
On Thursday, Accenture (ACN) saw its share price grow by 7.06 percent or by $24.55 to close at $372.16 following a strong earnings performance in the first quarter of fiscal year 2025, coupled with a positive outlook for the full year.
Just recently, Accenture announced that its net income in the first quarter of the fiscal year grew by 13 percent to $2.31 billion from the $2 billion registered in the same period last year.
For the current quarter, the company said it was looking to hit between $16.2 billion and $16.8 billion in revenues, while the long-term forecast was much better, with a new outlook ranging between 4-7 percent from the 3-6 percent projected earlier.
In addition, Accenture announced that it was partnering with Nvidia Corp. (NVDA) to help kickstart its adoption of Agentic Artificial Intelligence (AI), one of the hottest new trends in the AI sector.
Agentic AI is a more advanced AI system that can make decisions and take actions independently based on its environment, goals and training, whereas the traditional AI models operate strictly within the bounds of preprogrammed instructions and responses. AI agents are able to learn, adapt and respond in a more dynamic way.
8. Centessa Pharmaceuticals PLC (CNTA)
On Thursday, Centessa Pharmaceuticals (CNTA) finished the week stronger, with its share price posting a 6.3 percent increase to close at $17.55 apiece.
According to news reports, analysts were bullish on the company’s stock price, receiving a higher price target from hedge funds.
According to Leerink Partners, it upgraded its price target for the company to $24 apiece and maintained an “outperform” rating, reflecting an optimistic view on the company’s ORX750 program, for the treatment of narcolepsy.
Leerink Partners also raised its sales projections for Centessa’s total sales by 4 percent to $1.3 billion in 2032, as well as its earnings per share by 18 percent to $5.21 from $4.42.
Centessa similarly received a higher price target and a “buy” rating from financial services giant Guggenheim to $28, reflecting a positive outlook for the company.
7. Geo Group Inc. (GEO)
Geo Group (GEO), a publicly listed corporation investing in private prisons and mental health facilities across the United States, Australia, South Africa, and the United Kingdom, ended Thursday’s trading stronger by 6.18 percent to close at $28 apiece.
Investors took heart from news that the company is set to invest $70 million to enhance its service offerings to the US Immigration and Customs Enforcement (ICE).
Geo Group (GEO), currently the largest provider to ICE, operates approximately 21,000 detention beds at 16 ICE Processing Centers.
Alongside its investment announcement, Geo disclosed several executive leadership transitions as its chief executive officer (CEO), Brian Evans, is set to retire by the end of the year.
Evans will be replaced by J. David Donahue as the company’s CEO starting January 1, 2025.
Donahue has over 40 years of experience in the corrections and detention industry and has held various senior roles, including his prior service as the Vice President of the American Correctional Association.
6. Doximity Inc. (DOCS)
Shares of Doximity (DOCS) on Thursday rose by 5.73 percent or $2.99 to finish at $55.18, bucking news that a shareholder rights law firm was investigating potential claims against its business prospects and financial performance.
Hedge funds posted a positive outlook for Doximity, with ClearBridge Investments posting confidence in the company’s stock price, even naming it as its top pick in the healthcare sector.
In a letter to investors, ClearBridge said: “The company has a history of consistent execution and, while it stumbled last year in effectively communicating realistic guidance and outlooks, it appears that management has regained investors’ trust through several quarters of solid execution.”
In addition, Doximity announced in its recent State of Telemedicine Report that 83 percent of medical professionals based in the US still prefer having virtual care be a permanent part of their clinical practice—a widespread support that could play a key role in driving the company’s future growth.
5. Bill Holdings Inc. (BILL)
Bill Holdings (BILL) started Thursday’s trading on a strong note, opening at $89.01 apiece before traders took early profits to finish at $88.36. Thursday’s share price marked a 5.68-percent increase from its $83.69 close on Wednesday.
According to analysts, investor confidence was fueled by the company’s inclusion in the S&P Midcap 400 effective Monday, December 23. Bill Holdings was set to replace air conditioning and heating solutions Lennox International.
Being included in the S&P Midcap 400 index means that the company is now one of the benchmarks for mid-sized companies and that its performance is tracked by the index.
On the same day, Keybanc Capital Markets upgraded its outlook for Bill Holdings to “overweight” from “sector weight,” indicating a positive outlook.
4. Powell Industries Inc. (POWL)
Powell Industries (POWL), a manufacturer of integrated/packaged solutions and electrical equipment, saw its share price grow by 4.95 percent or $11.49 to end at $243.46 each on Thursday.
Powell Industries has also earned the #1 rank, marking a “strong buy” from Zack Investment Research.
The company has been one of the top-performing stocks during the year, surging by 264 percent from $100 to an all-time high of $364 in November.
Analysts said the company’s stock price is currently trading at support levels, and investors are expected to continue bargain hunting opportunities.
Powell Industries was founded in 1947 and is headquartered in Houston, Texas. The company’s primary focus is on serving the energy, utilities, transportation, and industrial markets.
3. Lumen Technologies Inc. (LUMN)
Telecommunications firm Lumen Technologies (LUMN) saw its share price increase by 4.66 percent on Thursday amid news that it was selling its consumer fiber operations to switch its focus on AI boom to power its near-term growth.
The move also forms part of the company’s strategy to phase out its legacy mass market business and reduce its sizable debt pile.
Based in Monroe, Louisiana, Lumen (LUMN) is working with investment bankers at Goldman Sachs to gauge interest in the business from potential buyers, including industry competitors.
According to reports citing sources who requested not to be identified, Lumen might also consider only selling a stake in its fiber unit or entering a joint venture agreement. The company’s decision is still uncertain as discussions remain in the early phases.
2. Sterling Infrastructure Inc. (STRL)
Sterling Infrastructure (STRL) finished Thursday’s trading up by 4.54 percent or $7.58 at $174.72 apiece on reports from analysts that the company registered an impressive performance, with its Return on Capital Employed (ROCE) settling at 22 percent. This means that the company is continually investing its earnings at ever-higher rates of return.
Investor confidence was also fueled by various hedge funds’ hiking of stakes in Sterling, including Barclays which recently increased its stake in the firm by 254.7 percent, and MML Investor Services LLC by 28.3 percent, during the third quarter of the year.
Investors also resorted to bargain hunting after the company’s share price closed at $167.14 on Wednesday, marking its lowest price so far during the last 30 days.
1. Nvidia Corp. (NVDA)
Nvidia’s stock price grew by 1.37 percent on Thursday to close at $130.68 apiece following twin news that Microsoft hoarded 485,000 pieces of Nvidia’s flagship “Hopper” chips this year, while also clinching a new partnership with Accenture to kickstart the latter’s adoption of Agentic Artificial Intelligence (AI), one of the hottest new trends in the AI sector.
With demand beating supply of Nvidia’s most advanced graphics processing units, Microsoft’s hoard boosted investor confidence that the company is set to join the race in building the next generation of AI.
Microsoft—which poured in a total of $13 billion in OpenAI—has been the most aggressive among the US’ biggest technology companies in building out data center infrastructure, both to run its own AI services and rent out to customers through the Azure cloud computing business.
While we acknowledge the potential of NVDA, 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 more promising than NVDA 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.