Weekly Winners | Ulta Beauty Soars 16%; Southwest Airlines Surges 8%; Palantir Jumps 7%

Tiger Newspress
05-31

This week, which stocks lagged or dragged? Weekly Winners column keeps up with market trends, helping Tigers sort out the week's hottest sectors, stock winners and important news.

Below are top 10 S&P 500 stock gainers for the week ended May 30:

Ulta Beauty Soars After Topping Estimates

Ulta Beauty shares surged 15.8% as first-quarter results topped Wall Street estimates, signaling that shoppers are buying up beauty products despite growing economic concerns.

Profit last quarter was $6.70 a share, the company said Thursday after markets closed, beating analyst expectations for $5.80. Comparable sales were also higher than expected. The company boosted its full-year outlook for sales and profit.

“Many consumers indicate that they are leaning into beauty as a comfort and escape from the stress of macro uncertainty,” Chief Executive Officer Kecia Steelman said on the company’s earnings call. “We expect this emotional connection will support the category’s resilience going-forward”

Hologic Stock Surges After Take-Private Offer

Hologic stock surged 14.5% this week as the Financial Times reported that the medical technology company had rejected a $16 billion offer from TPG and Blackstone to take it private.

The reported price and the potential for a future agreement appeared to energize investors. The $16 billion valuation is nearly 33% higher than Hologic’s market value of $12.1 billion.

Nordson Stock Jumps After Upbeat Q2 Earnings, Robust Growth Outlook

Nordson stock jumped 9.6% this week as the company’s second-quarter earnings topped Wall Street’s estimates.

The company reported adjusted earnings of $2.42 per share for the quarter ended April 30, while analysts expected it to post $2.36 per share, according to FinChat data. The adhesive dispenser maker’s quarterly revenue of $683 million also topped estimates of $672 million.

The company forecasted third-quarter sales in the range of $710 to $750 million and adjusted earnings between $2.55 and $2.75 per share. Analysts expect it to post $713.9 million in sales and earnings per share of $2.58.

Southwest Airlines Jumps as It Ends Free Baggage Policy, to Charge $35 for First Bag

Southwest Airlines on Tuesday said it will charge $35 for one checked bag and $45 for the second, except for certain elite customers, bringing an end to the airline's free luggage policy. Its shares jumped 7.9% this week.

Jefferies analyst Sheila Kahyaoglu also liked the news, as she upgraded the carrier’s stock to neutral from underperform. Kahyaoglu believes the new bag fees charged to customers will add about $430 million to earnings, before interest and taxes, this year. She also upped Southwest’s stock price target to $33 a share from $24, thanks in part to the company’s overall program to generate roughly $1.8 billion after pressure from activist shareholder Elliott Management.

Deutsche Bank raised Southwest Airlines from Hold to Buy, citing a series of developments expected to enhance shareholder returns and boost financial performance. The firm increased its price target for the stock from $28 to $40.

Palantir Stock Surges as Government Contracts, New Opportunities Mount

Palantir shares surged 6.9% this week as the data analysis and artificial intelligence software firm continues to acquire government contracts to accompany its expanding commercial activity.

Last week, Palantir was awarded a $795M U.S. Army modification to contract for Maven Smart System software licenses. Also, last week, U.S. President Donald Trump said he envisioned the U.S. building a $175B project to deploy a global missile defense system, dubbed the Golden Dome. Although some analysts surmise such a project presents extreme challenges, Palantir is reportedly on the list of defense contractors that have submitted proposals tied to the initiative.

And Friday, The New York Times reported that the Denver-based Palantir might be the company tapped to handle Trump's executive order that called for the federal government to merge information and data across its agencies. Palantir is also working with Tesla CEO Elon Musk's Department of Government Efficiency. Palantir reps are also talking to the Social Security Administration and the Internal Revenue Service for potential deals, according to the report.

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