U.S. Steel, CVS Health, SolarEdge and more
A customer walks to the entrance of a CVS Health Corp. store in downtown Los Angeles, California, United States on Friday, October 27, 2017.
Christopher Lee | Bloomberg | Getty Images
Check out the companies that are making headlines in mid-day trading.
US Steel – Against the decline in the broader market, US Steel stocks rose 7.9% after Credit Suisse upgraded the stock from underperforming to outperforming. Analyst Curt Woodworth said in a note to clients that the rise in steel prices has made it clear that the industry is in a “super cycle”. He sees US Steel stock up 42% after closing on Monday.
CVS Health – The pharmacy retailer’s shares rose 4.4% after CVS posted earnings of $ 2.04 per share in the first quarter, up over an expected $ 1.72. CVS sales, which also exceeded expectations, spiked in stores as customers flocked to the company’s locations to get their Covid-19 vaccine. The company raised its guidance for the full year.
Microsoft, Apple, Amazon, Facebook, Alphabet – Big Tech stocks fell Tuesday, with the Nasdaq Composite falling more than 1.2%. Netflix shares lost 1.6% and Microsoft fell 1.6%. Amazon and Facebook lost 2.2% and 1.3%, respectively. Apple fell 3.5% and Alphabet 1.6%.
SolarEdge – Shares in the solar inverter maker fell 16% after the company warned that margins could be lower due to higher freight costs. However, SolarEdge exceeded analysts’ expectations during the reporting period. The company made 98 cents per share excluding items while revenue was $ 405.5 million. Analysts polled by FactSet expected earnings of 80 cents per share and sales of 395.4 million US dollars.
Under Armor – Shares fell 1.2% despite the company beating estimates for sales and earnings in the first quarter. The retailer reported adjusted earnings per share of 16 cents on sales of $ 1.26 billion. Analysts polled by Refinitiv expected the company to generate earnings per share of 3 cents on sales of $ 1.13 billion. Separately, Under Armor said it had reached an agreement with the Securities and Exchange Commission on claims for disclosure error.
Kroger, Alberstons – Grocery chain stocks fell 4% and 2.5% respectively after Goldman Sachs said the return of restaurants and rising food prices should put pressure on supermarket stocks in the coming months. Goldman downgraded Kroger to sell from neutral and Albertsons from neutral to neutral, saying companies would likely be pinched by weaker demand and higher costs.
Quest Diagnostics – Quest Diagnostics’ shares rose 2.7% after UBS switched the stock to neutral.
Avis Budget – The car rental company’s shares fell 6.4% despite a better-than-expected earnings report. Avis posted a loss of 46 cents per share, less than its expected loss of $ 2.16 per share, according to Refinitiv. Income also exceeded estimates. Avis management commented on the lack of chips and gave no forward-looking information.
iRobot – iRobot’s shares fell 7.5% after reiterating its earnings forecast range, which is at the lower end of analyst expectations. However, the company reported earnings per share of 41 cents per share, which Refinitiv says is well above the 9 cents per share expected on Wall Street. Income also exceeded estimates.
Arconic – The industrial company’s share price rose 19.2% after beating its income statement for its quarterly results. Arconic posted earnings of 46 cents per share on sales of $ 1.68 billion. Analysts forecast earnings of 27 cents per share on sales of $ 1.54 billion.
– with reports from Pippa Stevens and Tom Franck of CNBC.
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