Why These 10 Stocks Are Trending on Tuesday

Published May 24, 2022 at 4:30 pm EDT Updated September 7, 2026 at 11:31 am EDT

In this article, we will discuss some of the notable stocks trending today.

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.

Photo by Marga Santoso on Unsplash

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 delivery system can cater to Dexcom’s glucose monitor so that insulin is automatically regulated.

ClearBridge Investments shared its stance on Insulet Corporation 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.

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 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..

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. in order to diversify its revenue streams from software products and semiconductors.

Here’s what ClearBridge Investments said about VMware, Inc. 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., with a stake worth over $4.7 billion during Q1 2022. Overall, 52 hedge funds held a stake in VMware, Inc. 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. 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. 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 membership program that included the installation and warranties in the annual fee. Best Buy Co., Inc.’s 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. was held by 25 hedge funds.

In addition to Best Buy Co., Inc., notable stocks such as Snap Inc., Roblox Corporation, and Abercrombie & Fitch Co. are trending today.

5. Snap Inc. (NYSE:SNAP) has crashed 41% as of 12:42 PM ET after CEO Evan Spiegel warned that Snap Inc. is expected to miss the earnings and revenue estimates for Q1 2022. The CEO attributed the slowdown in growth to the adverse macro-economic environment. Snap Inc. has also announced that it would be slowing down its pace of hiring till the end of 2022 to lower the company’s overall expenses.

Snap Inc. was discussed in the Q4 2021 investor letter of Baron Funds. Here’s what was said about the company:

“Snap Inc. is the leading social network among teens and young adults in North America and a growing number of overseas markets, including Western Europe and India. Shares fell this quarter on a greater-thananticipated impact from Apple’s new privacy changes for iOS mobile devices. These changes made it more difficult for Snapchat to measure the effectiveness of ads shown on its platform. We believe this is a near-term, industry-wide issue for which Snap is already developing a solution. Longer term, we continue to view Snap favorably as the company sustains its rapid pace of product innovation and expands its premium partnerships with advertisers.”

Of the 912 hedge funds tracked by Insider Monkey during Q1 2022, 54 funds held a stake in Snap Inc..

4. Roivant Sciences Ltd. (NASDAQ:ROIV) has surged 5.62% as of 1:17 PM ET after a subdivision of the company, Dermavant Sciences, got the high-profile approval by the U.S. Food and Drug Administration for its launch of Vtama cream. The cream is designed to treat cases of acute skin-related disorders such as psoriasis. The analysts are bullish on Roivant Sciences Ltd. (NASDAQ:ROIV) stock with a buy rating and an average price target of $14.2. The target price provides a potential upside of nearly 295% from the last closing price.

Overall, 27 hedge funds held a position in Roivant Sciences Ltd. as of Q1 2022.

3. Roblox Corporation (NYSE:RBLX) is down nearly 8.78% as of 1:40 PM ET after Atlantic Equities downgraded the stock from an Overweight to a Neutral rating. Analyst Kunal Malde also lowered the price target on Roblox Corporation from $60 to $30. He shared that the Roblox Corporation app’s download trend reflects weak user engagement. The analyst further stated that the “stock’s growth-consistent valuation looks relatively less attractive” in comparison to its competitors.

Roblox Corporation was mentioned in the Q4 2021 investor letter of Tao Value. Here’s what the firm said:

“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in virtual world. Apple in its iOS 14.5 rolled out an impactful change for digital advertising landscape by requiring all apps to ask users to “opt in”.

Roblox Corporation was held by 40 hedge funds at the end of Q1 2022, down from 61 in the preceding quarter.

2. Eaton Corporation plc (NYSE:ETN) is down 3.47% as of 1:51 PM ET after the power management company was downgraded from an Equal Weight to an Underweight rating at Barclays. The price target on Eaton Corporation plc (NYSE:ETN) was also lowered from $145 to $120. The revised price target presents a potential downside of 8.77% from the last closing price. Eaton Corporation plc’s (NYSE:ETN) stock is down 21% YTD.

Eaton Corporation plc (NYSE:ETN) was mentioned in the Q1 2022 investor letter of ClearBridge Investments. Here’s what the firm said:

“We also added to Eaton (NYSE:ETN), a market leader in the electrical equipment industry and a position begun late in 2021. Eaton’s products enable the electrification of the power grid and, importantly, EV charging infrastructure. Share prices should benefit as EVs grow and investments increase to improve grid efficiency and resilience.”

Of the 912 hedge funds tracked at the end of Q1 2022, Eaton Corporation plc (NYSE:ETN) was held by 42 hedge funds.

1. Abercrombie & Fitch Co. (NYSE:ANF) has slid over 30% as of 2:02 PM ET after the company cut its sales outlook for the current year, citing economic headwinds. Abercrombie & Fitch Co. shared that the product and freight costs were weighing down on the margins. Moreover, supply-chain backlogs are resulting in inventory piling up with the customer demand weakening. Abercrombie & Fitch Co.’s CEO stated that the company is working on reducing the high logistical expenses in the near future.

Abercrombie & Fitch Co. was held by 26 hedge funds at the end of Q1 2022.

You can also take a peek at the 12 Best US Stocks to Buy Now and 10 European Defense Stocks to Buy Now.

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