Stocks making the biggest moves premarket: Advance Auto Parts, Snowflake, Humana, Lumen Technologies and more
Check out the companies making headlines before the bell: Advance Auto Parts — Shares surged more than 30% after Advance Auto Parts topped first-quarter expectations. The auto parts company posted an adjusted loss of 22 cents per share, narrower than the loss of 82 cents per share analysts polled by LSEG had anticipated. Revenue of $2.58 billion exceeded the $2.50 billion consensus estimate. Nike — The footwear stock added almost 1% after the company said it would resume sales on Amazon . Nike had previously been a "gated" brand on the site, which means sales were highly restricted, after the brand stopped direct sales through the e-commerce site in 2019. The company also plans to raise prices on select products . Health insurance stocks — The Centers for Medicare & Medicaid Services announced an aggressive expansion of Medicare Advantage audits sending shares of health insurers lower. Humana shares dropped more than 6%. CVS Health fell almost 4%. UnitedHealth Group declined more than 3%. Analog Devices — Shares popped 3% after the semiconductor manufacturing company beat fiscal second-quarter expectations. Analog Devices earned $1.85 per share, excluding items, on revenue of $2.64 billion. Analysts polled by FactSet anticipated earnings of $1.70 per share on revenue of $2.51 billion. Urban Outfitters — The apparel retailer soared 17% after reporting earnings of $1.16 per share in its last quarter, which exceeded the 84 cents per share analysts had forecast, per LSEG. Revenue of $1.33 billion also came in higher than the $1.29 billion Wall Street had expected. Lumen Technologies — The telecommunications stock rallied 9% after AT & T agreed to acquire substantially all of Lumen's mass markets fiber internet connectivity business. The $5.75 billion deal is set to close in the first half of 2026. Shares of AT & T were little changed. Snowflake — Shares jumped 8% after the cloud-based data storage company posted solid earnings in its first quarter. Adjusted earnings of 24 cents per share topped the 21 cents per share expected by analysts polled by LSEG. Second-quarter product revenue guidance also exceeded expectations. Zoom Communications — Shares slipped less than 1% despite a first-quarter earnings beat and an upbeat forecast. Zoom earned $1.43 per share, excluding items, while analysts forecasted $1.31 a share. Revenue came in line with the Street's consensus at $1.17 billion. Pitney Bowes — Shares gained more than 9% after the shipping and mailing company said sitting director Kurt Wolf was appointed as its new chief executive. He replaces Lance Rosenzweig, who is retiring from his role as CEO but will stay on as a consultant to the company. — CNBC's Lisa Han, Alex Harring and Jesse Pound contributed reporting.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
30 minutes ago
- Yahoo
Broadcom Sinks as CEO Becomes Defensive on AI Opportunity -- Should Investors Buy the Dip?
Broadcom shares fell despite another strong quarter of AI revenue growth. However, its CEO got defensive when asked about the AI market opportunity he touted only six months ago. Still, the company is only at the beginning of its custom AI chip opportunity. 10 stocks we like better than Broadcom › Broadcom (NASDAQ: AVGO) once again reported robust artificial intelligence (AI) revenue growth in its fiscal second-quarter results released this week, with promises that the strong revenue growth would continue. The stock slipped despite an upbeat outlook, although it remains up more than 75% over the past year. Let's take a closer look at Broadcom's most recent results and the AI opportunity in front of it to see whether investors should buy this small dip. Broadcom CEO Hock Tan initially got investors excited back in December 2024 when he talked about the company having a $60 billion to $90 billion serviceable addressable market (SAM) opportunity in fiscal year 2027 with its three largest hyperscale (meaning they operate huge data centers) customers. However, when asked whether its SAM had increased, Tan told analysts he's "not playing the SAM game" and to "stop talking about SAM now." It was an unusual and defensive response from an executive who, only six months ago, was hyping Broadcom's SAM opportunity. However, Tan had said earlier that he anticipates Broadcom's current AI semiconductor revenue growth to sustain into fiscal 2026 after projecting it would grow by 60% to $5.1 billion in fiscal Q3. As one analyst on the call pointed out, that would imply $30 billion or more in AI semiconductor revenue in fiscal 2026. Much of Broadcom's AI semiconductor revenue growth is currently coming from its networking portfolio, particularly Ethernet switches. The company said its AI networking revenue surged by 170% year over year and represented 40% of its AI revenue. Perhaps, the bigger opportunity, though, is in custom AI chips. The company stated that custom AI chip revenue rose by double digits in the quarter and that it expects demand in the back half of 2026 to accelerate as inference demand surges. This is most likely coming from Alphabet, which was Broadcom's first customer for custom AI chips. However, the company said it still expects its three largest custom chip customers to each deploy 1 million AI chip clusters in 2027, mostly for training foundational AI models. Turning to Broadcom's results, its overall revenue climbed 20% year over year to $15 billion in the quarter, while adjusted earnings per share (EPS) soared 44% to $1.58 (adjusting for its prior 10-for-1 stock split). The results edged past analyst expectations for adjusted EPS of $1.56 on revenue of $14.99 billion, as compiled by LSEG. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, surged 67% year over year to $10 billion. AI-related revenue jumped 46% year over year to $4.4 billion. Total semiconductor solutions revenue rose 17% year over year to $8.4 billion, as the recovery in its non-AI chip revenue continues to be slow. Infrastructure software revenue, meanwhile, increased by 25% to $6.6 billion. The company credited the growth to strong sales of its VMware Cloud Foundation (VCF) platform and the transition of customers to subscription models. Its VCF platform helps customers create hybrid and multicloud environments, giving them the flexibility to manage workloads across both public clouds and their own on-premise data centers. Approximately 87% of VMware's top 10,000 customers have now adopted its VCF platform. Broadcom continues to generate strong cash flow, with cash flow from operations coming in at nearly $6.6 billion and free cash flow of $6.4 billion. It ended the quarter with nearly $9.5 billion in cash and equivalents and $67.3 billion in debt after buying back $4.2 billion worth of shares in the quarter. Its debt is a result of its $69 billion acquisition of VMware in 2023. Looking ahead, Broadcom forecasts fiscal Q3 revenue to increase by 21% to $15.8 billion, with semiconductor revenue rising 25% to $9.1 billion and infrastructure software revenue increasing 16% to $6.7 billion. It expects adjusted EBITDA to be about 66% of revenue, or about $10.4 billion. Broadcom continues to see strong AI revenue growth, led by its networking portfolio. But the best opportunity may still be in front of the company, with its custom AI chips. Only Alphabet is truly ramped up, and it has a huge opportunity with other customers. Now, Tan's sudden reluctance to talk about Broadcom's AI semiconductor SAM is disappointing, and the extent to which China's ByteDance -- one of its suspected in-progress large AI chip customers -- and the new Chinese export controls might have on that is unknown. Still, he did not back down from the growth of the company's three large hyperscale customers or that they plan to each deploy 1 million AI chip clusters in 2027. He also still has Apple as well as other customers that aren't quite as far along, which should also power growth in later years. From a valuation perspective, Broadcom now trades at a forward price-to-earnings (P/E) ratio of about 31.5, based on fiscal 2026 analyst estimates, and a price/earnings-to-growth ratio (PEG) of less than 0.4. Stocks with PEG ratios below 1 are generally considered undervalued. Given the growth opportunities still in front of it, I think investors can use this price dip to start building positions. The biggest risk would be a slowdown in spending on AI infrastructure, but we still appear to be in the early innings. Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Broadcom Sinks as CEO Becomes Defensive on AI Opportunity -- Should Investors Buy the Dip? was originally published by The Motley Fool
Yahoo
an hour ago
- Yahoo
Why Oscar Health, Inc. (OSCR) Soared On Thursday
We recently published a list of . In this article, we are going to take a look at where Oscar Health, Inc. (NYSE:OSCR) stands against other best-performing stocks on Thursday. Oscar Health snapped a five-day losing streak on Thursday, jumping 10.6 percent to close at $15.65 apiece as investors resorted to bargain-hunting while waiting for more concrete developments on the Trump administration's Medicare Advantage review. Earlier this year, lawmakers passed a $5-trillion tax-and-spending package that shaves as much as $900 billion in Medicaid, which servers over 70 million low-income households. A close up of a patient and a healthcare professional engaging in conversation, showing the company's commitment to patient care. Now, Senate Republicans to broaden savings by looking for supposed inefficiencies in the Medicare program for senior citizens. In the first quarter of the year, Oscar Health, Inc. (NYSE:OSCR) registered a 55-percent increase in attributable net income of $275 million versus the $177 million registered in the same period last year. Revenues rose by 42 percent to $3.046 billion from $2.142 billion year-on-year. Overall, OSCR ranks 5th on our list of best-performing stocks on Thursday. While we acknowledge the potential of OSCR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
3 Magnificent Stocks to Buy in June
Shopify is benefiting from organic growth in e-commerce, and it's aiding that by expanding its addressable market in multiple ways. Cava stock's recent dip offers a great opportunity to invest in this fast-growing restaurant business. After years of setbacks, the pieces are in place for a recovery at Nike. 10 stocks we like better than Shopify › Investors can set themselves up for life with a portfolio of well-chosen growth stocks. Investing in companies that are likely to be earning substantially higher revenue and profits in 10 years than they are today will help you multiply your savings. To give you some ideas, three contributors recently selected three stocks that they believe are positioned to deliver excellent returns in the coming years. Here's why they like Shopify (NASDAQ: SHOP), Cava Group (NYSE: CAVA), and Nike (NYSE: NKE). (Shopify): Shopify is the largest e-commerce services provider in the U.S., with about 30% of the market, according to Statista. That gives it a strong moat against the competition, and it's constantly releasing new features and tools to satisfy demand and keep its top position. The company has developed a complete ecosystem offering everything an omnichannel retailer needs to operate. It has moved way past its origins as an e-commerce website developer to offer full commerce services, from back-end management systems to point-of-sale devices for physical retailers. Merchant clients can sign up for whole packages or individual components. That gives it access to large leading companies that might need specific services, and it counts businesses like Kraft Heinz and Mattel as clients. It also has partnerships with major tech players like Amazon and Meta Platforms. Not only has business been good, but revenue also grew in the 2025 first quarter by 27% year over year. It's now been eight quarters of revenue growth above 25%, and profits are also on the rise. Operating income nearly doubled in the first quarter, and free-cash-flow margin expanded from 12% to 15%. Management sees a long runway. E-commerce is still increasing as a percentage of retail sales, providing organic growth opportunities for years. According to eMarketer, e-commerce made up 20.3% of sales last year, and it's expected to increase to 23% by 2027. That represents trillions of dollars, and a large chunk of that will end up in Shopify's system as its millions of merchants benefit. It has many other growth drivers. Its merchants get stronger with time, and that's true across different time periods. Barriers to entry for entrepreneurs continue to come down, and more small businesses create new opportunities for Shopify as the leader in e-commerce. It's expanding its addressable market through increasing its product line, its geographies, and the size of its clients. And its market opportunity increased from $46 billion when it started in 2015 to almost $900 billion by 2023. Shopify stock is down this year as the market has concerns about tariffs, and now is a great time to pick up shares. John Ballard (Cava Group): If there's a restaurant stock that has the makings of the next Chipotle, it's Cava. With the stock down 28% year to date, investors have a great opportunity to start a position at a more reasonable valuation. The stock's recent dip can be attributed to its steep valuation entering the year, as Cava continues to report strong financial results. The chain is satisfying a healthy appetite for its Mediterranean-based menu. It just opened 15 net new restaurants last quarter, helping to drive revenue up 28% year over year. And it's important to point out that it is seeing strong growth at existing locations. Same-restaurant sales (comps) surged 10.8% year over year, with guest traffic up 7.5%. Cava is nowhere close to reaching its long-term goal of 1,000 restaurants by 2032. It's in only 26 states but already has a solid operating profit margin of 6.6% on a trailing-12-month basis, and that margin should continue to increase as the business scales up and leverages expenses across a larger store base. The strong growth in comps shows that Cava still has a lot of opportunity to increase sales at existing locations and expand brand awareness. The company is delivering a unique restaurant experience that is getting recognition: It was recently ranked No. 13 out of the 50 most innovative companies as chosen by the business publication Fast Company. Analysts expect earnings to grow at an annualized rate of 36%. This should be a multibagger stock as Cava expands to all 50 states. Jeremy Bowman (Nike): It's hard to call Nike stock magnificent these days. The company has gone through one of its worst periods in its history, due primarily to increasing competition and strategic errors under its former CEO. Revenue is falling by double digits and is now down 65% from its peak in 2021, steadily declining since then. However, Nike is still the largest sportswear brand in the world. It's not going to fade away into irrelevance, and the company has a number of initiatives under new CEO Elliott Hill that should help return it to growth. These include focusing more on innovation and new products, returning to more tried-and-true marketing methods, and reestablishing relationships with wholesalers after overly focusing on the direct-to-consumer channel. Nike will report fiscal fourth-quarter earnings later this month, and any good news could propel the stock higher. Though the company is facing a challenging macroeconomic climate with changing tariff rates, it appears to be regaining market share in running-shoe sales from Deckers' HOKA brand, which reported slowing growth in its recent earnings report. Nike also said in its last quarter that it had returned to growth in running footwear, driven by the Pegasus 41 and new shoes like the Pegasus Premium. Management also said that it expected revenue growth and gross margin to bottom in the fourth quarter and "begin to moderate there." If Nike can show it's taking steps to recovery and expects improving performance in fiscal 2026, the stock could move higher on the earnings report. While a turnaround won't happen overnight, the first step is earning investor confidence, and Nike can do that later this month when it reports fourth-quarter results. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Amazon, Cava Group, Chipotle Mexican Grill, Meta Platforms, Nike, and Shopify. John Ballard has positions in Cava Group. The Motley Fool has positions in and recommends Amazon, Chipotle Mexican Grill, Deckers Outdoor, Meta Platforms, Nike, and Shopify. The Motley Fool recommends Cava Group and Kraft Heinz and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. 3 Magnificent Stocks to Buy in June was originally published by The Motley Fool Sign in to access your portfolio
