Hot stock: CRUS gains on earnings; BILLING falls; JWN activist interest; Lowest CNC in 52 weeks
Stocks fell on Friday, weighed down by better-than-expected jobs reports and poor earnings reports from Amazon and Alphabet. Strong job growth raises concerns that the Federal Reserve will need to push interest rates even higher to get inflation going. in control.
Amid the overall slide, Bill.com (BILL) is a standout discounter, as its earnings report shows slowing growth in a key performance measure. Meanwhile, Centene (CNC) added to its recent weakness, sliding to a new 52-week low.
Earnings news has the opposite effect on Cirrus Logic (CRUS). The rally sent stocks to new 52-week highs. Elsewhere, Nordstrom (NYSE:JWN) has increased its value by a quarter thanks to reports of active investor interest.
Prominent bullies
Nordstrom (JWN) spiked after a report that activist investor Ryan Cohen took a large share in company. The news sent the department store chain’s shares up 25%.
According to the Wall Street Journal, Cohen wants to replace at least one board member, targeting Bed Bath & Beyond CEO Mark Tritton.
Supported by the news, JWN rose $5.24 to close at $26.38. Friday’s rally extended recent gains, with the stock up 67% for 2023 so far. With the gains, the stock recorded its highest close since August.
Prominent denizen
bill. com (BILL) reported Q2 results that beat expectations for headline numbers. However, the stock fell 27% when the results showed growth in total payment volume slows down.
BILL reported earnings and sales that exceeded expectations. However, concerns about TPV resulted in BMO Capital and BTIG being downgraded.
BMO analyst Daniel Jester said in a quarterly update: “While the guidance suggests an incremental deceleration over the next few quarters, we are concerned about the trajectory into next year as consensus estimates continue. seems high now.”
BILL ended Friday’s trading at $94.51, down $34.40 on the day. The pullback reversed gains announced in January, with the stock recording its lowest close since January 6.
Remarkable new high
The release Better-than-expected earnings news stimulate purchases in Cirrus Logic (CRUS). Shares rallied nearly 8% to hit a new 52-week high.
The semiconductor company reported third-quarter non-GAAP earnings of $2.4 per share, beating forecasts of $0.41 per share. Revenue rose 8% to $591 million, beating expectations of $47 million.
Looking ahead, CRUS forecasts Q4 revenue of $340M-$400M. Analysts are looking for a figure around $370 million.
Thanks to the earnings news, CRUS surged to a 52-week intraday high of $104.97. Shares corrected slightly from there, eventually closing at $102.38, up $7.49 on the day.
CRUS has grown 41% so far in 2023.
Notable new lows
Centene (CNC) added to the weakness seen over the previous few days, dropping another 2% to hit a new 52-week low.
CNC showed strength in the early part of Friday’s trading session but started to decline mid-morning. After further declines in the afternoon, the stock ended at $71.01, down $1.54 on the day. During the session, the stock hit a 52-week intraday low of $70.80.
This is the third consecutive day of losses and the fifth down day in the past six sessions. CNC has dropped nearly 11% in the past month. On Thursday, managed care stocks lost ground amid news of a low Medicare Advantage payment increase for 2024.
For more on the biggest winners and losers of the day, visit Looking for Alpha’s On The Move part.
