Pre-Market Movers: Notable Stocks Making Headlines
As the market prepares to open, several companies are creating buzz in the financial world:
Constellation Energy
Constellation Energy saw a 2% increase in its stock value after Bank of America upgraded its rating from neutral to buy. Analyst Ross Fowler pointed out that the company is well-positioned to benefit from impending regulatory clarity combined with rising demand and restricted supply. He believes that this optimistic potential has yet to be reflected in the current stock price, suggesting that shares are undervalued.
Celsius Holdings
Shares of Celsius Holdings, known for its energy drinks, surged nearly 4% following JPMorgan’s initiation of coverage with an overweight rating. The firm highlighted a reduction in inventory levels and a resurgence of growth in the U.S. energy drink market as key drivers for this positivity.
Uber
Uber’s stock climbed over 3%, recovering from previous losses earlier this week. The company experienced a three-day decline, including a 5.8% drop on Wednesday after General Motors decided to stop funding Cruise, its autonomous driving unit that had partnered with Uber.
Beverage Companies
In a move that pleased investors, Deutsche Bank analyst Steve Powers upgraded Coca-Cola, PepsiCo, and Keurig Dr Pepper from neutral to buy. Each of these stocks saw an increase of approximately 1% in premarket trading. Powers anticipates that increases in restaurant traffic and impulse buying will enhance the beverage and snacks sectors next year.
Adobe
In contrast, Adobe faced a sharp decline of 11% after providing revenue guidance for its fiscal first quarter that fell short of expectations. The software giant is forecasting revenue between $5.63 billion and $5.68 billion, lower than the LSEG consensus estimate of $5.73 billion.
Oxford Industries
Shares of Oxford Industries, a retailer of apparel and footwear brands like Tommy Bahama, dropped around 4% after reporting third-quarter results that missed expectations. The company recorded adjusted losses of 11 cents per share on revenue of $308 million, falling short of analysts’ projections for earnings of 9 cents per share on $316.8 million in revenue.
Chewy
Pet goods retailer Chewy saw its shares decrease by about 3% in premarket trading. This drop followed the announcement of a public offering of $500 million in shares, which will be sold by Buddy Chester Sub. Chewy plans to simultaneously acquire $50 million worth of shares from the same entity.
Warner Bros. Discovery
In more positive news, Warner Bros. Discovery’s shares surged 6% following the announcement of plans to separate its cable TV operations from its more rapidly expanding streaming and studio divisions.
These developments illustrate the dynamic nature of the stock market, with various sectors experiencing their unique challenges and opportunities. Keep an eye on these companies as they navigate through the ever-changing financial landscape.
