Target Faces Pride Backlash
Good morning Wake-up Watchlisters! While you’re sipping coffee you’ll see stock futures were up slightly on Wednesday. Shares of Target Corp. jumped (more on that below) and China’s economic woes continued to weigh on markets. The key inflation print in the UK held steady at 6%, which was higher than expected and could spur bets the tight central bank policy will be in place for longer.
When inflation is stifling economic growth, it’s important to consider investments that can provide stability. Right now investors are pouring money into these assets at a pace not seen in years.
Here’s a look at the top-moving stocks this morning.
Target Corp. (NYSE: TGT)
Target is up 8.63% premarket after profits came in above expectations. However, its guidance fell due to poor sales and a negative reaction to its pride merchandise. Target said it earned $835 million, or $1.80 per share, in the quarter that ended July 29. It also expects comparable sales in a wide range around a mid-single digit decline for the reminder of the year.
CAVA Group (NYSE: CAVA)
CAVA is up 11.88% premarket after the Mediterranean chain reported a second-quarter earnings beat. It was the first quarterly report since its IPO, and the company turned profitable. Its revenue jumped 62.4% year over year and same-store sales moved higher, up 18.2%.
Earnings day can be a big catalyst for a stock’s direction. However, there’s another phenomenon that can happen after earnings day. It’s called the “post earnings surge” and our Lead Technical Tactician Nate Bear is now trading just ONE Ticker after its earnings to potentially take advantage of these trade opportunities.
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Mercury Systems (Nasdaq: MRCY)
Mercury Systems is down 10.61% premarket after turning in an earnings surprise of -79.63%. It came out with earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.54 per share. Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Only a very small set of tech stocks in the AI sector like Nividia and C3.AI have been the talk of 2023. However, there’s also a lesser-known stock that’s seen a 156% rise in 12 months, and our Lead Fundamental Tactician Karim Rahemtulla believes it still has more room to grow.
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H&R Block (NYSE: HRB)
H&R Block is up 5.90% premarket after posting quarterly earnings of $2.05, beating Wall Street’s expectations of $1.88, according to Refinitiv. Its $1.03 billion in revenue was higher than the $1.01 billion analysts expected. It also increased its quarterly dividend 10.3% to $0.32 from $0.29 and raised its full-year guidance.
Those are the biggest stock movers for today.
Happy trading!
The Wake-Up Watchlist Research Team
