Inflammation Drug Maker Swells 21% on Buyout Buzz

Author

Adam Garcia
June 03, 2025

A major discount retailer beat expectations and hiked its 2025 forecast, a plumbing and HVAC distributor raised its dividend and full-year outlook, and a skin-focused biotech is surging 21% on a $3B takeover offer. Keep reading to find out more.

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Futures 📈

What to Watch

Earnings:

  • CrowdStrike Holdings Inc. [CRWD]: Aftermarket

  • Hewlett Packard Enterprise Company [HPE]: Aftermarket

  • Guidewire Software Inc. [GWRE]: Aftermarket

  • HealthEquity Inc. [HQY]: Aftermarket

  • Asana Inc. [ASAN]: Aftermarket

Economic Reports:

  • Factory Orders [April]: 10:00 am

  • Job Openings [April]: 10:00 am

  • Chicago Fed President Austan Goolsbee speech: 12:45 pm

  • Federal Reserve Governor Lisa Cook speech: 1:00 pm

  • Dallas Fed President Lorie Logan opening remarks: 3:30 pm

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Discount Retail

Dollar General Lifts 2025 Outlook After Q1 Beat

Dollar General [NYSE: DG] delivered solid first-quarter results this morning and raised its fiscal 2025 outlook following gains in sales, profit, and earnings.

Revenue for the quarter ending May 2 reached $10.4 billion, up 5.3% from the prior year. Comparable store sales rose 2.4%, driven primarily by higher average transaction values. Net income improved 7.9% to $391.9 million, or $1.78 per share, beating the prior year’s $1.65.

The retailer experienced sales strength across all major product categories, including food, seasonal items, home goods, and apparel.

Operating income rose 5.5% to $576.1 million, while operating cash flow surged 27.6% to $847.2 million. Inventory was down 7% on a per-store basis.

Despite concerns about potential consumer impacts from shifting tariffs, Dollar General now expects full-year net sales growth between 3.7% and 4.7% and EPS between $5.20 and $5.80—both slightly above prior guidance.

The company plans roughly 4,885 real estate projects this fiscal year, including 575 new U.S. stores and up to 15 in Mexico. Capital expenditures are expected to reach up to $1.4 billion. A quarterly dividend of $0.59 per share was declared, payable July 22.

Shares of Dollar General are up nearly 8% in premarket trading today.

Banking

Ferguson’s Strategic Overhaul Pays Off in Third Quarter

Ferguson PLC [NYSE: FERG] reported higher third-quarter revenue and raised its full-year sales outlook, as the plumbing and heating distributor continues to benefit from organic expansion and acquisitions.

Revenue rose 4.3% year-over-year to $7.6 billion in the quarter, supported by strong demand across both residential and commercial segments. The company’s gross margin improved to 31.0%, reflecting improved pricing and product mix.

Ferguson also raised its quarterly dividend by 5%, signaling confidence in its financial health and cash flow. The company’s recent streamlining efforts have led to one-time charges but these changes are expected to generate substantial annual cost savings going forward.

Management revised its full-year revenue forecast to reflect low to mid-single-digit growth, highlighting a more favorable demand outlook despite ongoing macroeconomic uncertainty.

Shares of Ferguson are up more than 6% in premarket trade.

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Nuclear Energy

Meta’s Nuclear Push Sends Constellation Stock Soaring 13%

Shares of Constellation Energy [NASDAQ: CEG] are soaring 13%+ in premarket today after the company revealed a 20-year power purchase agreement with Meta Platforms [NASDAQ: META], marking the tech giant’s first formal investment in nuclear energy.

Starting June 2027, Meta will purchase 1.1 gigawatts of electricity annually—equal to the entire output of Constellation’s Clinton Clean Energy Center in Illinois. The deal not only secures the future of the plant, which faced potential shutdown after losing state subsidies, but also allows for a planned 30-megawatt expansion.

Although the Clinton facility won’t directly supply Meta’s data centers, the energy will support Meta’s broader decarbonization goals via the regional grid.

This agreement is the latest in a wave of collaborations between tech and nuclear power as companies seek stable and emission-free energy sources to support growing AI infrastructure.

Meta joins Amazon [NASDAQ: AMZN], Microsoft [NASDAQ: MSFT], and Google [NASDAQ: GOOGL], all of whom have recently backed nuclear initiatives.

Constellation is also considering building a small modular reactor at the Clinton site, potentially capitalizing on federal efforts to accelerate nuclear development. President Trump’s recent executive orders aim to overhaul permitting and quadruple U.S. nuclear output by 2050.

Movers and Shakers

MoonLake Immunotherapeutics [MLTX] - Last Close: $41.16

MoonLake Immunotherapeutics is a Swiss clinical-stage biotech company developing sonelokimab, a Nanobody® therapy targeting inflammatory diseases like hidradenitis suppurativa and psoriatic arthritis.

Its stock is surging over 21% in premarket trading following reports that Merck has submitted a nonbinding $3 billion acquisition offer, which was initially rejected but may lead to renewed talks.

My Take: MoonLake has a strong cash position and promising Phase 3 pipeline. This makes it a compelling acquisition target, so the Merck offer is not entirely unexpected. Keep a close watch on whether the deal is going through.

Agenus Inc. [AGEN] - Last Close: $4.13

Agenus Inc. is a clinical-stage biotech firm developing immuno-oncology therapies, notably its BOT/BAL program targeting hard-to-treat cancers.

Its stock is surging over 18% today after announcing a $141 million strategic collaboration with Zydus Lifesciences, which includes a $75 million upfront payment and a $7.50/share equity investment, bolstering its financial position and U.S. manufacturing capabilities.

My Take: As a clinical stage biotech, Agenus has its financial challenges, but this partnership provides crucial capital and infrastructure support. If BOT/BAL continues to show clinical promise, it could be a solid stock to keep on your radar.

Signet Jewelers Limited [SIG] - Last Close: $66.81

Signet Jewelers is the world's largest diamond jewelry retailer and owner of brands like Kay, Zales, and Jared. The firm has solid revenue but has struggled to maintain its profit margin in recent quarters.

Its stock is surging nearly 9% in premarket after the company raised its annual adjusted EPS forecast to between $7.70 and $9.38, up from the previous range of $7.31–$9.10, and increased its annual sales outlook of $6.57 billion to $6.80 billion.

My Take: Signet's proactive measures to improve profitability, including share repurchases and strategic cost management, seem to be yielding results. Given the company's strong brand portfolio, it might be a good stock to keep your eye on.

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Everything Else

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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