Three major stocks are making waves in today's market: WBA plummets after slashing its profit outlook, MU drops despite beating earnings expectations, and PANW rises on positive analyst sentiment.
In a volatile trading session, three major stocks are capturing investors’ attention with significant price movements and key announcements. Walgreens Boots Alliance (NASDAQ:WBA) faced a steep decline following its earnings report, while Micron Technology (NASDAQ:MU) saw a pullback despite beating expectations. Meanwhile, Palo Alto Networks (NASDAQ:PANW) gained on positive analyst sentiment. Here’s a closer look at these stocks making waves in today’s market.
Walgreens Boots Alliance (WBA) Stock Plunges on Third-Quarter Earnings Report
Shares of Walgreens Boots Alliance plummeted 24.77% to $11.78 as of 11:30 AM EDT, following the release of its fiscal third-quarter earnings report. Despite beating revenue expectations with $36.4 billion against an anticipated $35.94 billion, the company’s adjusted earnings per share of $0.63 fell short of the expected $0.68.
The pharmaceutical retailer slashed its full-year adjusted profit outlook to $2.80-$2.95 per share from the previous $3.20-$3.35, citing a “challenging” environment for pharmacies and U.S. consumers.
Walgreens announced plans to close underperforming U.S. stores over multiple years as part of a cost-cutting strategy. Despite challenges in its retail segment, which saw a 4% decline in sales, the company’s U.S. healthcare segment grew 7.6% year-over-year to $2.13 billion.
The stock’s year-to-date return stands at -53.64%, significantly underperforming the S&P 500‘s 14.69% gain.
Micron Technology (MU) Dips Despite Better than Expected Results, Fails to Impress AI-Driven Expectations
Micron Technology shares dropped 6.76% to $132.73 by late morning trading, despite reporting better-than-expected quarterly results.
The memory chip manufacturer posted earnings per share of $0.62, surpassing the projected $0.51, and revenue of $6.81 billion, exceeding the estimated $6.67 billion. However, forward guidance that merely met analyst expectations appeared to disappoint investors, especially considering the stock’s strong performance leading up to earnings, having rallied over 65% year-to-date.
With a market capitalization of $157.70 billion, Micron remains a key player in the AI-driven semiconductor rally.
However, some analysts suggest the stock may be overvalued in the short term, with an estimated fair value of $97.84, significantly below its current trading price. Despite the pullback, the average analyst price target stands at $153.08, indicating potential upside.
Palo Alto Networks (PANW) Stock Gains on Analyst Optimism
Bucking the downward trend, Palo Alto Networks saw its stock rise 5.28% to $342.42 by late morning. The cybersecurity firm continues to benefit from bullish analyst sentiment, with both Robert W. Baird and Cantor Fitzgerald analysts maintaining Buy ratings.
Analysts cite steady demand, improved visibility for the year’s second half, and successful platformization strategies, particularly in Secure Access Service Edge (SASE) and Extended Security Information and Event Management (XSIEM).
Palo Alto Networks boasts impressive growth metrics, with a year-to-date return of 16.12% and a one-year return of 40.45%, outpacing the broader market. The company’s focus on high-quality, sustainable customer relationships and positive response to new AI features have contributed to its strong performance in the rapidly growing cybersecurity sector.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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