| October's retail sales report sent US stocks lower on Wednesday. The Nasdaq lagged its large-cap counterparts with a 1.5% decline, while the S&P 500 lost 0.8% on the trading session. The Dow fared better with only a 0.1% loss, but the small-cap Russell 2K tumbled 1.9%. Today, futures are down in early morning trading action. Dow and S&P 500 contracts are currently showing a 0.5% loss. Top 5 Tech Stocks Every Investor Should Buy Right Now
Picking the right tech stocks is no easy task, but we've pinpointed 5 promising tech innovators that could take off.
Our report, "Top 5 Tech Stocks Every Investor Should Buy Right Now", identifies five tech stocks with explosive potential.
Sign up here to get your free report now.
ð Fed Pushes Back. Recent comments from central bank policymakers suggest aggressive rate hikes won't end as soon as investors hope, dampening some of the enthusiasm that has fueled this week's gains. Bath & Body Works Inc [BBWI] - Last Close: $31.33 Bath & Body Works is running hot after a strong earnings report. The specialty retailer released stronger-than-expected Q3 results in Wednesday's after-hours. Bath & Body Works reported revenues of $1.6 billion and beat the Street's $1.55 billion forecast. The big surprise came in earnings. BBWI posted EPS of $0.40, more than double the consensus estimate of $0.20 EPS. BBWI also raised its revenue guidance in response to the strong quarter. The report catapulted BBWI to the top of the S&P 500 in today's premarket with a 20.6% gain. My Take: BBWI pulled it out in Q3, and that says a lot about the company's management. Its chart trends look pretty rough, but there could be substantial upside for the stock if it can manage to reverse course anytime soon. Ardelyx Inc [ARDX] - Last Close: $1.22 A favorable FDA ruling is boosting shares of Ardelyx today. The biopharma firm announced late Wednesday that the US Food & Drug Administration has recommended approval for its kidney disease drug candidate Xphozah. Ardelyx said the FDA's Cardiovascular and Renal Drugs Advisory Committee voted 9:4 in favor of approving the drug as a standalone therapy for kidney disease patients. The panel also voted 10:2 in favor of combining the drug with phosphate binders. Piper Sandler upgraded its rating on ARDX to "overweight" and raised its price target from $3 to $8 in response to the blockbuster news. ARDX is this morning's most actively traded stock, and it's currently up 64.7%. My Take: It looks like ARDX hit a home run with Xphozah. Today's rally puts it on pace to break through a key resistance point at $1.50 per share. This could mark the beginning of a dramatic upswing for the stock, but it might be advisable to wait for a pull-back before you jump on the bandwagon. Elevate Credit Inc [ELVT] - Last Close: $1.06 News of a buyout deal skyrocketed shares of Elevate Credit today. The consumer finance stock announced Wednesday evening that it has entered into a definitive agreement to be acquired by Park Cities Asset Management in an all-cash deal. Under the terms of the agreement, Park Cities will pay $1.87 per share in cash to acquire the company. The total transaction value comes in at about $67 million. The companies expect to close on the deal in Q1 of 2023, subject to shareholder approval and other closing conditions. Upon closing, Elevate Credit will become a private company. ELVT is one of this morning's top premarket performers with a 68.8% gain. My Take: There's not a lot of upside left in this trade. Shares are currently trading for just 8 cents below the acquisition price. If you're not already in this one, it's probably best to sit it out. Cytomx Therapeutics Inc [CTMX] - Last Close: $1.21 Cytomx Therapeutics just teamed up with a powerful new partner. The oncology-focused biopharma stock just announced a strategic collaboration with pharma giant Regeneron for the development of bispecific cancer therapeutics. Cytomx will receive $30 million upfront payment, plus the potential to earn up to $2 billion in additional milestone payments. The company is also eligible to receive tiered royalties on global net sales. News of the collaboration sent CTMX to a 25.5% gain on high trading volume in today's premarket. My Take: This collaboration could be very promising for CTMX, and Regeneron wouldn't have made the deal if it didn't see potential in the company. Shares have been down-trending for months, but this rally could be the pivot point. | 