- Elite Trade Club
- Posts
- Friday's Top-4 Premarket Stocks
Friday's Top-4 Premarket Stocks
U.S. stocks are hoping for a strong finish after running in the green for most of the trading week.
Chris Dinello
February 09, 2024
Good Morning!
It's Chris from Elite Trade Club, here to give you this morning's premarket trading news.
Let's get ready to trade!
Markets 📈
U.S. benchmarks notched razor-thin gains on Thursday and extended their win streak by another day. The small-cap Russ2K outperformed with a 1.5% rally.
|
|
Futures are trending higher in early trading. S&P 500 contracts are currently by 0.1% in early premarket trading.
What to Watch Today:
It’s a quiet day for economic updates, but the CPI seasonal factor revisions report could provide some valuable inflation-related insights. On the earnings side, PepsiCo [PEP] is the biggest name on today’s calendar.
Gold is an effective way to protect portfolios from the forces of war and uncertainty.
But gold reserves have declined, along with a lack of new gold discoveries.
To make up for growing gold demand, more new mining projects and gold discoveries are needed - particularly in safe jurisdictions such as the U.S.
Premarket Highlights 🔎
🏦 Barclays Expands Empire: Snatches Up Tesco Banking
In a bold move that mixes groceries with greenbacks, Barclays [BARC] is setting the banking world abuzz by bagging Tesco’s [TSCO] banking operations for a cool 600 million pounds ($757 million).
It's like mixing peas and carrots, if the peas were credit cards and the carrots were billions in deposits.
📊 What’s in the Basket?
Barclays isn’t just adding a few items to its financial fridge; it’s going for a full-blown feast. The deal plates up Tesco Bank’s tasty slices of credit card operations, unsecured personal loans, and hefty customer deposits—think about 8.3 billion pounds in lending balances and another 6.7 billion in deposits. That’s a lot of groceries, or in this case, profits.
🔄 Integrating the Ingredients
It's not just about adding numbers; it's about blending cultures and people too. Barclays plans to welcome around 2,800 Tesco employees into its fold, promising a mix that’s hopefully as harmonious as tea and biscuits.
Funded by Barclays’ own coffers, this deal is more than just a transaction; it’s about scaling up and spreading out in the U.K.’s financial supermarket.
💡 A Strategic Checkout
For Tesco, this move is like trimming the fat from its steak. By offloading its banking segment to Barclays, the grocer sharpens its focus on what it does best—feeding the nation.
Plus, it’s a chance to treat shareholders with a bit of extra cash, presumably to spend on more Tesco goodies.
In the grand shopping aisle of finance and groceries, this deal might just be the bargain Barclays was looking for to beef up its presence and profit in the post-pandemic U.K. market.
Featured Earnings 💰️
PepsiCo [PEP] ... AM
W. P. Carey [WPC] ... AM
Plains All American Pipeline [PAA] ... AM
Catalent [CTLT] ... AM
Essent [ESNT] ... AM
Mr. Cooper [COOP] ... AM
Newell Brands [NWL] ... AM
Plains GP Holdings [PAGP] ... AM
Sensient Technologies [SXT] ... AM
Construction Partners [ROAD] ... AM
Economy 🏗
CPI seasonal factor revisions ... 8:30a
Dallas Fed President Lorie Logan speaks ... 1:30p
Running Hot 🔥
Gainers
Top Financial [TOP] >> +86.2%
Intelligent Living [ILAG] >> +65.9%
Next eGO [EGOX] >> +40.0%
Decliners
Synologic [SYBX] >> (53.9%)
Children’s Place [PLCE] >> (52.0%)
BioXcel [BTAI] >> (15.7%)
Masonite [DOOR] - Last Close: $96.61
Owens Corning [OC] has agreed to a $3.9 billion deal to acquire Masonite for $133 per share in an all-cash transaction.
The deal pays a 37% premium compared to DOOR’s Thursday closing bid, and the companies expect to close on the sale sometime in mid-2024.
DOOR is up by 34.0% on the news, but volume is thin at around 100K shares traded so far.
My Take: DOOR landed a solid deal, but there’s not a lot of upside left on the table at its current price point.
Cloudflare [NET] - Last Close: $90.31
The internet hosting company is surging after posting a double-line beat and strong guidance on its Q4 earnings report in Thursday’s aftermarket.
Cloudflare’s Q4 revenues grew 32% YoY to $362.47 million, easily topping the $353.1 million consensus.
The company’s EPS and Q1 revenue guidance also surpassed the Street’s expectations.
NET is a top mover with a 25.7% gain on about 500K shares traded.
My Take: NET had been facing stiff resistance around $86 per share before breaking on Thursday. It’s on pace to set a new 52-week high.
Cleanspark [CLSK] - Last Close: $10.50
After Thursday’s closing bell, this American Bitcoin miner published Q1 earnings that blew past analysts’ expectations.
Cleanspark swung to earnings of $0.14 per share after reporting a $(0.46) loss a year earlier. Revenues jumped 165% YoY to $73.8 million for the quarter.
Both figured topped the Street’s forecast, and shares are skyrocketing in the premarket.
CLSK is up 21.9% on 1.9 million shares traded.
My Take: Bitcoin’s resurgence has been a gravy train for CLSK. There could be more growth ahead for this company in 2024, if BTC prices continue to rise.
Sunworks [SUNW] - Last Close: $0.0544
Sunworks is exploding, despite ceasing its business operations and filing for Chapter 7 bankruptcy in U.S. bankruptcy court on Tuesday.
Shares prices are down 75.2% over the past five days, and it had a 13.7% short rate as of Jan. 15th.
SUNW is up 223.8% in today’s premarket on more than 60 million shares trade
My Take: SUNW had a 13.73% short rate as of Jan. 15th, but short positions have likely spiked as a result of its recent bankruptcy. Today’s rally is likely the result of a short squeeze.
That's it for today! Thanks for reading, and good luck out there!
Best Regards,
— Chris D.
Elite Trade Club
Text ELITE to 47121 or click here to get our alerts on your mobile device, and never miss another fast-moving stock!
P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.
