A customer walks towards the entrance of a CVS Health Corp. store in downtown Los Angeles, California, the United States, Friday, October 27, 2017.
Christopher Lee | Bloomberg | Getty Images
Find out which companies are making the headlines in midday trading.
US Steel – Bucking pulls back in the larger market, US Steel shares rose 7.9% after Credit Suisse improved the stock to outperform after an underperformance. Analyst Curt Woodworth told customers in a note that the steel price surge clearly shows the industry is in a “super cycle.” He sees the US Steel title rebound 42% to where it closed on Monday.
CVS Health – Shares of the drugstore retailer gained 4.4% after CVS said it gained $ 2.04 a share in the first quarter, above the expected $ 1.72. Sales of CVS, which also exceeded expectations, increased in its stores as customers flocked to company sites to receive their Covid-19 vaccine. The company has raised its forecast for the year as a whole.
Microsoft, Apple, Amazon, Facebook, Alphabet – Shares of Big Tech stocks fell on Tuesday with the Nasdaq Composite down more than 1.2%. Shares of Netflix were down 1.6% and Microsoft 1.6%. Amazon and Facebook lost 2.2% and 1.3% respectively. Apple fell 3.5% and Alphabet fell 1.6%.
SolarEdge – Shares of the solar inverter maker fell 16% after the company warned that margins could be lower in the future, thanks to higher transportation costs. SolarEdge, however, exceeded analysts’ expectations during the period. The company earned 98 cents per share excluding items, while revenue was $ 405.5 million. Analysts polled by FactSet expected earnings of 80 cents a share and revenue of $ 395.4 million.
Under Armor – Shares fell 1.2% despite the company breaking high and low estimates in the first quarter. The retailer reported adjusted earnings per share of 16 cents on revenue of $ 1.26 billion. Analysts polled by Refinitiv expected the company to post earnings per share of 3 cents on $ 1.13 billion in revenue. Separately, Under Armor said it has reached an agreement with the Securities and Exchange Commission over the allegations of non-disclosure.
Kroger, Alberstons – Shares of grocery chains fell 4% and 2.5% respectively after Goldman Sachs said the return of restaurants and rising food prices are expected to put pressure on supermarket stocks in the months to come. Goldman demoted Kroger to sell from neutral and Albertsons to neutral by buy, saying companies risked being squeezed by weakening demand and rising costs.
Quest Diagnostics – Shares of Quest Diagnostics rose 2.7% after UBS improved its action to buy at a neutral level, saying industry fundamentals appeared to be at their healthiest point in more than a decade , even as the revenue stream from Covid testing declined.
Avis Budget – Shares of the car rental company fell 6.4% despite a better-than-expected earnings report. Avis reported a loss of 46 cents per share, lower than the expected loss of $ 2.16 per share, according to Refinitiv. Income also exceeded estimates. Avis management has commented on the chip shortage and has not provided forward-looking guidance.
iRobot – Shares of iRobot fell 7.5% after reasserting the range of its earnings guidance, which is on the low end of analyst expectations. However, the company reported EPS of 41 cents per share, well above the 9 cents per share expected on Wall Street, according to Refinitiv. Income also exceeded estimates.
Arconic – The industrial company’s share price jumped 19.2% after beating the high and low in its quarterly results. Arconic reported earnings of 46 cents a share on revenue of $ 1.68 billion. Analysts were forecasting earnings of 27 cents a share on revenue of $ 1.54 billion.
– with reports by Pippa Stevens and Tom Franck of UKTN.
Become a smarter investor with UKTN Pro.
Get stock picks, analyst calls, exclusive interviews, and access to UKTN TV.
Register to start a free trial today.