We’ve got the skinny on what’s revving up and what’s sputtering…
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🔥 HOT: Gen Digital (NASDAQ: GEN) gained 7.7% by Friday’s close after an impressive earnings beat. The company turned in impressive numbers for the second quarter, beating its EPS and revenue predictions by 6.7% and 5.9%, respectively. It also raised its full-year guidance by a cool $100 million, increasing its estimated revenue range to between $4.8 billion and $4.9 billion from its previous estimate of between $4.7 billion and $4.8 billion. We rank GEN 11th out of 125 Software Infrastructure stocks we cover, and with a B rating in Value, adding it to your portfolio now is akin to a major discount, in our opinion. We give GEN a B Zen Rating and a Buy recommendation.
🥶 NOT: The Trade Desk (NASDAQ: TTD) got hit with a double dose of downgrades on Friday. Bank of America reduced its price target for the stock from $130 to $55, while RBC Capital took less drastic action by decreasing its price target for TTD to $90. The issue for both ratings firms seems to be The Trade Desk’s difficulty in signing new business. The company is hoping that its new CFO, Alex Kayyal, will be able to turn things around starting on August 21st, but Wall Street remains unconvinced. For our part, we feel that TTD’s Financials are too strong to write the stock off completely at this point. However, we’re still playing things safe by giving TTD a C Zen Rating and a Hold recommendation.
🔥 HOT: Gilead Sciences (NASDAQ: GILD) gained 8.3% on Friday after an earnings report that exceeded expectations and a guidance raise. The company’s EPS eked out a beat, coming in $0.05 per share higher than Wall Street’s expectation. Its revenue also outperformed projections by 1.4% ($100 million). A smattering of price target upgrades from ratings firms throughout the financial district helped GILD keep its momentum into the close. If you’re looking for a drug manufacturing stock to add to your investments, you can do a lot worse than GILD, in our opinion. The stock ranks seventh out of 18 stocks we cover in the industry, with B ratings in Value, Sentiment, and Financials. We give GILD a B Zen Rating and a Buy recommendation.
Find out more about our Financials metric here
🥶 NOT: Shares of Under Armour (NYSE: UAA) lost 18.1% on Friday after the company’s second-quarter earnings report failed to impress investors. The company’s quarterly EPS fell 20% short of consensus estimates, coming in at $0.02 per share compared to the consensus estimate of $0.025. Under Armour’s CEO, Kevin Plank, blamed the company’s poor performance and weak guidance on Trump’s tariffs and the associated uncertainty surrounding their future. He said that the tariffs, as they currently stand, cost his company an additional $100 million. Our research gives UAA D ratings in Sentiment and Momentum. UAA’s Growth potential isn’t much better (C rating), making it difficult to see how it earns a place in portfolios over the next few years. We give UAA a D Zen Rating and a Sell recommendation.
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