Good morning. It's November 26th, and in today's edition, we'll look at why two major stocks in the retail sector are struggling in premarket trade today, even as a tiny biotech stock has nearly tripled itself. | |
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| Previous Close 📈 | | The major U.S. indices continued to gain momentum on Monday. The Dow Jones Industrial Average surged by 440 points (1%), closing at a new all-time high. The S&P 500 added 0.3%, hitting a fresh intraday record, while the Nasdaq Composite also climbed 0.3%. Small-cap stocks outperformed, with the Russell 2000 reaching its first record since 2021, reflecting renewed investor interest in smaller, domestically focused companies. | Futures | U.S. stock futures are flat today as traders digest Trump's latest tariff threats. Dow futures are up 37 points (0.1%), while S&P 500 futures and Nasdaq-100 futures are each higher by around 0.1%. |
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| | Energy Sector | | | An exciting opportunity has emerged in the clean energy sector. A company leveraging high-purity silica is transforming industries like solar panels, energy storage, and advanced technology. | (By clicking the link above, you'll receive free access to the report and a complimentary subscription to Small Caps Daily's daily newsletter. You also agree to the advertiser's privacy policy. Unsubscribe at any time.) | With access to one of the world's top silica sand districts and efficient logistics in place, this company has entered a pivotal growth phase, transitioning into revenue generation. | The solar glass manufacturing facility, capable of producing up to 365,000 tonnes annually, is a significant revenue driver, offering prices competitive with global leaders. Breakthrough femtosecond laser technology refines raw silica into premium products using sustainable, green processes. | This company has also developed an innovative energy storage system combining advanced purification with renewable energy, positioning it as a trailblazer in clean energy solutions. | As global silica supplies tighten, the company's strategic vertical integrations and immediate revenue streams highlight its potential for exponential growth into 2025 and beyond. | This clean energy stock could be a key player in shaping the future of renewable technologies. | Don't miss your chance to get in before this stock moves higher! | (By clicking the link above, you'll receive free access to the report and a complimentary subscription to Small Caps Daily's daily newsletter. You also agree to the advertiser's privacy policy. Unsubscribe at any time.) |
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| | What to Watch | Earnings season continues as Analog Devices (NASDAQ: ADI), Best Buy (NYSE: BBY), Burlington Stores (NYSE: BURL), Dick's Sporting Goods (NYSE: DKS), and The J.M. Smucker (NYSE: SJM) report their numbers before the opening bell today. | Dell Technologies (NYSE: DELL), CrowdStrike Holdings (NASDAQ: CRWD), Workday (NASDAQ: WDAY), HP (NYSE: HPQ), and Nutanix (NASDAQ: NTNX) will report their results after the market closes. | On the economic calendar, the S&P Case-Shiller Home Price Index for September will be released at 9:00 a.m. ET, followed by Consumer Confidence for November and New Home Sales for October at 10:00 a.m. ET. |
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| | Retail | Best Buy Shares Fall Upon Revised FY25 Outlook Amid Sales Decline | | Best Buy reported its Q3 FY25 earnings today. Its revenue of $9.45 billion is down from $9.76 billion in the same period last year and below analyst estimates. Comparable sales are also down 2.9%, reflecting ongoing consumer spending pressures, particularly in high-margin categories like appliances and home theater. | The company's adjusted EPS of $1.26 is also below estimates by $0.04 but is slightly higher (by 4%) year-over-year. Domestic revenue is down 3.3% to $8.70 billion, with online sales comprising 31.4% of total domestic revenue, slightly improving from prior quarters. Gross profit margins are up by 23.6%, but higher SG&A costs offset these gains. | Best Buy's latest full-year revenue guidance is $41.1-$41.5 billion, which is down from previous estimates and would imply a comparable sales decline of 2.5% to 3.5%. The company is maintaining its non-GAAP operating income rate guidance of 4.1%-4.2%, emphasizing effective cost management amidst top-line challenges. | Key growth areas include computing, tablets, and services, while traditional strengths like appliances face softness. The company is noting a shift in consumer behavior, with customers delaying purchases for sales events and focusing more on high-value technology essentials. | As Best Buy heads into the critical holiday shopping season, its Q4 guidance suggests continued pressure. Its stock is down 6.48% in premarket trade, reflecting investor concerns. |
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| | Retail | Burlington Lowers Q4 Outlook Amid Seasonal Challenges, Stock Tumbles | | Burlington Stores Inc. shares are down 5.8% in premarket trading today due to its below-par fourth-quarter projection. For the third quarter ending November 2, Burlington's net income of $90.6 million, or $1.40 per share, is notably higher from $48.6 million, or $0.75 per share, in the same period last year. | Adjusted earnings of $1.55 per share are also aligned with Wall Street's consensus estimate. Revenue for the quarter is up 10.5% to $2.53 billion from $2.29 billion a year earlier, though it is slightly below analysts' projections of $2.55 billion. | However, Burlington's forecasted adjusted earnings of $3.55 to $3.75 per share for the fourth quarter are below the $3.78 per share expected by analysts, which is causing the shares to fall. | The company attributed its cautious outlook to the impact of warm weather on sales of cold-weather apparel, particularly coats. Despite the challenges, Burlington is finding positive momentum in other product categories and remains focused on optimizing inventory levels to navigate the evolving retail landscape. |
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| | Sporting Goods | Strong Q3 Performance Sends Dick's Sporting Goods Shares Up 5.5% | | Dick's Sporting Goods shares are surging 5.56%% in premarket trading today upon its better-than-expected third-quarter results and raised full-year guidance. | The retailer's earnings per share (EPS) of $2.75 is above analyst expectations of $2.67. Revenue is at $3.06 billion, slightly ahead of the $3.03 billion consensus estimate. Comparable sales are up by 4.2%, exceeding the anticipated 2.5% growth, while gross margin is at 35.8%, compared to the forecasted 35.1%. | Lauren Hobart, President and CEO of the firm, cited a continued focus on its strategic pillars and execution for the success. | Looking ahead, Dick's Sporting Goods also raised its guidance for fiscal year 2025. The company now expects EPS to range between $13.65 and $13.95, slightly above the consensus estimate of $13.88. Revenue is forecasted at $13.2 billion to $13.3 billion, with comparable sales growth revised upward to 3.6%-4.2%, higher than the previously projected 2.5%-3.5%. | This strong performance, coupled with the improved outlook, underscores the retailer's successful strategy in navigating market challenges while capitalizing on consumer demand. |
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| | | | Movers and Shakers | | Poseida Therapeutics [PSTX] - Last Close: $2.86 | Poseida Therapeutics' stock has skyrocketed 222% in premarket trading. | Roche announced plans to acquire the company for up to $1.5 billion. | The Swiss pharmaceutical giant will pay $9 per share upfront (a huge premium over Poseida's previous closing price of $2.86), with additional performance-based payments potentially increasing the total to $1.5 billion. | Roche aims to bring Poseida's cutting-edge CAR-T cell therapies, used to treat certain cancers, in-house. These therapies are personalized by re-engineering a patient's immune cells to fight cancer. | The acquisition also includes Poseida's innovative manufacturing capabilities and technologies to scale "off-the-shelf" CAR-T therapies, which could broaden their commercial use. | My Take: Roche's buyout is a validation of Poseida's technology and future potential. Given the $9-per-share buyout price, it's no wonder the stock has gone up so high. Keep an eye on this stock through the day. |
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| ZenaTech, Inc. [ZENA] - Last Close: $6.42 | Coming off a massive 336% surge in the last 5 days, ZENA is again growing by nearly 65% in premarket trade today. | Significant advancements in the military drone sector in recent days, ZENA's compliance with critical defense standards, and its exemplary quarterly returns are together causing this rally. | The company recently announced partnerships with Blue UAS and National Defense Authorization Act (NDAA)-compliant supply chain partners, positioning its ZenaDrone 1000 AI drones for sales to U.S. Defense branches and NATO forces. | These drones have already been successfully tested by the U.S. Air Force and Naval Research for field-critical tasks like transporting cargo. | ZenaTech's compliance with strict cybersecurity and sourcing requirements under NDAA and its pursuit of Blue UAS certification make it a key contender in defense contracts. | Additionally, the company reported a 15% revenue increase for the first nine months of 2024, reflecting strong business growth. These developments have generated investor confidence, boosting the stock's appeal. | My Take: ZENA is clearly a stock to watch out for in the future, given its massive growth potential. |
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| Semtech Corporation [SMTC] - Last Close: $53.44 | Semtech (SMTC) shares are up 19% in premarket trading due to its strong Q3 2024 financial results, which exceeded analyst expectations. | The company's earnings of $0.26 per share are beyond the consensus estimate of $0.24 and significantly higher than the $0.02 per share it earned a year ago. | Revenue is at $236.8 million, a 1.81% beat over expectations and a 17.9% increase from the $200.9 million reported last year. | My Take: The company has consistently outperformed revenue estimates over the past four quarters and has risen 146.95% YTD. This is definitely a stock to keep on your radar. |
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| | | | | | That's all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia
Elite Trade Club |
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