Hims & Hers and Zava, Credo earnings, Kenvue: Trending Tickers

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2 days ago

Hims & Hers Health (HIMS) announced it will be acquiring European telehealth platform Zava in an all-cash deal. The stock is falling ahead of Tuesday's market close.
Credo Technology (CRDO) shares surge after beating fiscal fourth quarter earnings and revenue estimates.
Kenvue (KVUE) shares move to the downside after CEO Tebow Mongeau pointed to certain seasonal challenges this summer at a conference.
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It's time for today's trending tickers. We're watching Hims and Hers Health, Credo Technology, both on the up and up today, as well as Kenvue, which is going in the upper other direction. Starting off with Hims, it's having a rocky day today despite announcements that the company would be acquiring Zava, a European health platform. Him's stock hit some gains when trading opened, but then we saw it turning lower as the morning progressed, so the stock right now down by more than 3%. Most of the analysts have been pretty positive on this one. I did see an interesting note from Allen Letz over at Bank of America, which has an underperform on the stock, and they said, you know, mixed reaction to this. They said this is positive here, but on the negative side, they say if you look at other US healthcare tech companies that have moved into Europe, it hasn't worked out so well.
Yeah, I see analysts at uh quoting saying, "On paper, the tie-up makes sense," because they're talking about how Zava offers the same products and services that Hims currently does, also some uh some areas that are on its growth roadmap that call for example, hormone replacement therapy, but they they do see some execution and integration risks. They do call the stock, by the way, they've been on a move already. Something like 100% this year.
Yeah, it's been on fire.
On fire. All right, Credo Technology. Let's check out that one as well. It's going in the opposite today after the company reported a 400% increase in earnings and 180% increase in sales on a year-to-year basis, leading to huge stock market gains for Credo. So revenue for the fourth quarter, I did see that beat estimates. Revenue was 170 million. It looks like consensus was close to around 160. I see Barclays is saying this is the company's second material beat and raise. Uh this one features, they noted, three large customers versus Amazon alone. Says it's a rare combination of small scale with big tech. Barclays is a buy. By the way, so is buy, so is every single analyst on the street. All 13 buys.
Wow!
Yeah. A lot of excitement around this company. So networking company, the CEO on the conference call saying, um I think all of the hyperscalers have the potential to be a 10% customer long term. Now, right now, according to Needham estimates, Microsoft accounts for about 12%, XAI accounts for about 11%, um Amazon, it's very reliant on Amazon, 61% of its business last quarter. So I guess if they get less reliant on one client and sort of ever all of these huge hyperscalers are each spending at least 10% with them, I guess analysts think that's a pretty good place to be.
And plenty do. It is one of the places to be.
Yeah.
Seems that way. And let's look at Kenvue. Those shares are seeing some losses after the company CEO, Thibaut Mongon expressed seasonal demand is behind last year's for the company. It's even behind the company's own expectations. He made some comments at a um at a conference today. He said, "It's not a great year so far for allergy and the sun category is more or less the same." By the way, Kenvue, it's not known under its brand name, but it is, if you remember, it spun off in 2023 from Johnson & Johnson. So it has like the consumer-facing brands that had been under J&J.
Yeah, consumer products company.
Yeah.
So this is, they make this presentation, um and the CEO apparently, so he warns about the seasonal demand, as you said, he's uh talked about being behind last year, its own expectations. I mean, not surprisingly, investors reacting. He says, "Not a great year so far for allergy." Uh the sun category more or less the same. On the consumer, making some comments there that were interesting. You're always looking for, you know, what executives are saying and any kind of line of sight you can have into the consumer. Uh this CEO saying, "We definitely see the consumer continuing to be under pressure, regardless of the geography, for slightly different reasons."
Interesting. I mean, all of that said, the stock is up about 4% this year. It's up about 15% over the past year. Um most analysts have holds on this thing. There are 15 holds and four buys. As I mentioned, it spun off from J&J back in August of 2023. Kenvue shares are down about round 6% since then. It's interesting. Johnson & Johnson shares are about down about the same amount. So it's not as though the spin-off, you know, caused either one of them to outperform the other.