Hot or Not: Stock Market Edition [11/26/2024]

Break out the bubble bath! Bath & Body Works (BBWI) had an awesome day yesterday thanks to a positive earnings report; Canadian Solar (CSIQ) similarly had a sunny day with a slew of new Buy ratings. 

Meanwhile, Nvidia (NVDA) and Macy’s (M) had rough days for very different reasons; find out the stories below.

🔥 HOT: After a rough year that saw Bath & Body Works (NYSE: BBWI) down as much as 38.5%, an unexpectedly strong earnings report propelled the beleaguered stock to a 16.5% gain on Monday. BBWI’s biggest gain in over two years was due to the company beating its third-quarter EPS and revenue numbers and raising its fourth-quarter guidance during its shareholders meeting. There’s still a long way to go before BBWI gets back on track. The stock is still down 16.1% YTD and recently lost its place in the S&P 500.

🥶 NOT: Shares of Nvidia (NASDAQ: NVDA) fell by 4.2% on Monday, three days after a modest earnings beat. So what’s going on? The crazy truth is that Nvidia’s fourth-quarter guidance left investors cold despite the fact that the $37.5 billion Nvidia expects to generate represents 6.8% growth. Expectations are through the roof for Nvidia since the company is about to complete back-to-back years of gaining over 150% and becoming the world’s most valuable company. Despite losing 10% since its earning report, Nvidia is still in good shape. The company’s CEO announced that it expects demand for its latest chips to outstrip the supply for at least another few quarters, so this mini skid is likely just a bump in the road.

🔥 HOT: Canadian Solar (NASDAQ: CSIQ) gained 9.7% on Monday after several ratings firms initiated coverage of the company with a buy rating. The solar industry has taken a beating this year, and Canadian Solar is no exception. CSIQ has lost 49.3% YTD even after Monday’s gain, but the company is in a better position than its competitors due to a shift in its business plan. Canadian Solar is moving to invest in power plants rather than being solely dependent on manufacturing to generate revenue, a move that will give it more stability at a time when the future of solar is uncertain.

🥶 NOT: Macy’s (NYSE: M) lost 2.2% after the company delayed its earnings report due to an internal investigation. One of the company’s employees allegedly made an accounting error that obfuscated between $132 and $154 million in revenue starting in the fourth quarter of 2021. Even without the delay, the market was already preparing for bad news, with early numbers showing that Macy’s same-store sales were down 1.3%. While the earnings delay probably won’t change anything quantitatively, it’s still a bad look for the company and won’t help what’s shaping up to be a disappointing report.

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