In this article, we will discuss some of the popular stocks that are trending this week. To take a look at other stocks that are in the news, go to 5 trending stocks this week.
US equity markets are in the green on August 8th as we near the end of the earnings season. Data on inflation levels will be released the following week. The consumer price index (CPI) will be released on Wednesday and investors are expecting the rate to fall slightly on the back of lower fuel prices in July. Analysts expect July CPI to come in at 8.7% versus 9.1% in the previous month.
The S&P 500 Index has closed in the green for the past three consecutive weeks. Well-known companies such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and Tesla, Inc. (NASDAQ:TSLA) are among the stocks trending this week.
Let’s discuss why these stocks are trending this week and see how hedge funds are positioned in them.
10. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of hedge fund holders: 15
Bed Bath & Beyond Inc. (NASDAQ:BBBY) is up 40.07% this week. The New Jersey-based bedding, bathroom, kitchen and home accessories retailer is looking to close in the green for the 10th straight day.
Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock is seeing a squeeze short as the company’s short-term interest rate ratio rose to an 18-month high of 46.1% as of July 31, analysts believe. On August 5th, Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock gained 32% as 52.76 million shares changed hands without major market news. Bed Bath & Beyond Inc. (NASDAQ:BBBY) was one of the top-voted stocks on Reddit’s WallStreetBets forum on Aug. 8.
Bed Bath & Beyond Inc. (NASDAQ:BBBY) was featured in Miller Value Partners’ Q2 2022 Investor Letter. Here’s what the company said about the company:
“Bed Bath & Beyond 5.165% 08/2044 declined 67.4% over this period. Bed Bath & Beyond reported fourth-quarter ’21 revenue of $2.05 billion, down 22% year-on-year, and missed consensus of $2.08 billion. The company lost $0.92 per share for the quarter compared to adjusted earnings per share of $0.40 in the fourth quarter of 2020, below analysts’ expectations for earnings per share of $0.03. Management identified supply chain disruptions and the Omicron variant resulted in inventory availability issues, which had an estimated revenue impact of $175 million, or 8.5% of net sales in Q4 21 and a decrease in adjusted gross margin by 400 basis points (bps) Y/Y in Q4 21 was up 28.8% driven by product cost increases and higher than expected freight and shipping rates. Additional headwinds during the quarter were general weakness in the retail segment, highlighted by large profit losses from Walmart and Target, and Moody’s downgrading of Bed Bath’s corporate family rating from B1 to B2. The rating agency cited increased execution risk of the company’s strategic turnaround initiatives and ongoing supply chain issues as the main reasons for the downgrade, which weigh on the company’s market share and profitability going forward. However, Moody’s maintained a stable outlook for the retailer given the financial flexibility afforded by the company’s cash position and low level of funded debt.”
Bed Bath & Beyond Inc. (NASDAQ:BBBY) was held by 15 hedge funds at the end of the first quarter of 2022.
9. First Solar, Inc. (NASDAQ:FSLR)
Number of hedge fund holders: 35
First Solar, Inc. (NASDAQ:FSLR) is up 9.98% this week after the Tempe, Arizona-based photovoltaic (PV) solar solutions provider upgraded its rating from JPMorgan’s neutral to overweight by Mark Strouse became. The analyst also revised the price target on First Solar, Inc. (NASDAQ:FSLR) to $126 from $83. Strouse highlighted the passage of the Inflation Reduction Act as the largest policy move in US history to accelerate the transition from conventional to renewable energy sources. The analyst thinks First Solar, Inc. (NASDAQ:FSLR) is in the best position to take advantage of the law. While there is a possibility that the bill will be changed when it goes to the House of Representatives, it is highly unlikely that the salient features of the bill will be changed.
Beech Hill Partners was the top hedge fund investor in First Solar, Inc. (NASDAQ:FSLR) for the second quarter of 2022.
8. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of hedge fund holders: 36
Palantir Technologies Inc. (NASDAQ:PLTR) is down 14.07% this week after the Denver, Colorado-based data analytics firm reported mixed Q2 2022 results and weak FY22 guidance.
Palantir Technologies Inc. (NASDAQ:PLTR) reported an adjusted loss per share of one cent, in contrast to analysts’ guidance of earnings of three cents per share. In contrast, Palantir Technologies Inc. (NASDAQ:PLTR) saw sales climb 26% year over year to $473 million, beating the consensus estimate of $471.7 million.
For the third quarter of 2022, the company expects revenue of between $474 million and $475 million, below the guidance of $508.23 million. Additionally, Palantir Technologies Inc. (NASDAQ:PLTR) expects FY22 revenue of $1.9 billion, also short of analysts’ forecast of $1.98 billion.
During the first quarter of 2022, 36 funds said they owned an interest in Palantir Technologies Inc. (NASDAQ:PLTR).
7. Barrick Gold Corporation (NYSE:GOLD)
Number of hedge fund holders: 45
Barrick Gold Corporation (NYSE:GOLD) is up 3.91% this week after the Canadian miner reported better-than-expected second-quarter 2022 results.
Barrick Gold Corporation (NYSE:GOLD) reported revenue and adjusted earnings per share of $2.86 billion, or 24 cents, beating analysts’ forecast of $2.85 billion and 22 cents. The company also benefited from higher copper production during the quarter. Barrick Gold Corporation (NYSE:GOLD) expects to meet full-year copper and gold production guidance. However, CEO Mark Bristow stressed that copper supply has not been able to keep up with increased demand for the metal as heavy metals are an integral part of clean energy initiatives.
Here’s what ClearBridge Investments said about Barrick Gold Corporation (NYSE:GOLD) in its Q2 2022 Investor Letter:
“In addition to Iberdrola, new structural producer purchases during the quarter included Canadian miner Barrick Gold Corporation (NYSE:GOLD), which is seeing operational improvements in its business. The company has aggressively deleveraged its balance sheet and reduced capital expenditures to channel its healthy free cash flow into dividends and buybacks.”
6. Coinbase Global, Inc. (NASDAQ:COIN)
Number of hedge fund holders:46
Coinbase Global, Inc. (NASDAQ:COIN) is up 9.26% this week, after notable cryptocurrencies like Bitcoin USD (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) surged following a positive July 2022 jobs report In the last 24 hours, Bitcoin and Ethereum are up 4.4% and 6.1%, respectively.
Coinbase Global, Inc. (NASDAQ:COIN) surged last week as BlackRock, Inc. (NYSE:BLK) partnered with the company. The deal would allow BlackRock, Inc. (NYSE:BLK) institutional investors to buy and sell bitcoins on the cryptocurrency exchange. Following this development, Daiwa’s Carlton Lai gave Coinbase Global, Inc. (NASDAQ:COIN) a buy rating with a price target of $100 in a note issued to investors on Aug. 8.
Rowan Street Capital LLC shared its stance on Coinbase Global, Inc. (NASDAQ:COIN) in its Q2 2022 Investor Letter. Here’s what the company said:
“The mindset of a passionate Founder/CEO drives a completely different thought process and decision making that makes the difference. This is a quote from Brian Armstrong, Founder and CEO of coin base (NASDAQ:COIN):
“I can say with some authority that we will not do so because that is not why I started the company – I have no other justification to give. Instead of the professional CEO walking in who is accountable to Wall Street and quarterly results, you could start thinking about the company differently. One of the scarcest things in business today is risk-taking. Take Tesla vs. Waymo for example. Tesla launched self-driving cars, Google didn’t. The reason for this is that the founding CEO (Elon Musk) said that I care enough about the mission that we are ready and will commit to it. Whether a professional CEO is thinking about his career, the founding CEO doesn’t care about the next job, only the mission.'”
Alongside Coinbase Global, Inc. (NASDAQ:COIN), popular stocks such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Tesla, Inc. (NASDAQ:TSLA) are also trending this week.
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disclose. none. 10 trending stocks this week was originally published on Insider Monkey.