Before the market opened, several companies were making headlines. Hertz Global’s stock fell nearly 5% after a downgrade to sell from neutral by Goldman Sachs. The analyst cited near-term pressures that investors may not have fully priced in. Similarly, shares of Block, a financial services platform, slipped 3% following a downgrade to underweight from equal-weight by Morgan Stanley, which mentioned high market penetration and limited additional opportunity as reasons for the change. On the other hand, Zeta Global saw its stock rise 5% after an upgrade to overweight from equal-weight by Morgan Stanley, which expects positive revisions to valuation and estimates due to near-term catalysts and a strong track record of prudent guidance.
Wayfair, a home-focused e-commerce retailer, also saw an increase in its stock price, rising nearly 5% after an upgrade to outperform from in line by Evercore ISI. The firm believes that Wayfair can gain market share amid a recovery in the home furnishing space. Levi Strauss experienced an 8% jump in its shares after beating first-quarter expectations on both the top and bottom lines and raising its full-year profit guidance. The retailer reported adjusted earnings of 26 cents per share on $1.56 billion in revenue, surpassing analyst estimates.
Conagra Brands shares added more than 4% after the consumer packaged goods food company reported fiscal third-quarter earnings and revenue that beat expectations. Conagra posted earnings of 69 cents per share on revenue of $3.03 billion, exceeding FactSet’s estimates. Lamb Weston’s shares rose nearly 1% ahead of the french-fry producer’s latest quarterly results, with analysts expecting third-quarter revenue of $1.65 billion. Intuitive Machines, a space stock, soared nearly 11% after winning a $30 million NASA contract to build a lunar terrain vehicle as part of the Artemis moon exploration campaign.
Overall, these companies are experiencing various changes in stock prices due to analyst upgrades and downgrades, as well as positive earnings and revenue reports and contract wins. Investors are reacting to these developments as they assess the potential impact on the companies’ future performance and growth prospects. The upgrades and downgrades from analysts provide insight into how the market views the companies’ current positions and future outlook. Earnings beats and positive guidance can drive stock prices higher, while contract wins can also boost investor confidence in a company’s potential for future growth. It will be interesting to see how these companies continue to perform in the coming quarters and whether they can sustain their positive momentum.
