 | | | | | A tiny medical device stock is exploding 400% after FDA approval for expanded use of its flagship spinal implant, a spice giant is slipping after weak Q1 earnings, and a pork producer is sizzling post-IPO with a solid return to profitability. Read on to find out more. | | 📲 Want our updates via text message? Get Elite Trade Club's pre-market insights and hottest stocks straight to your cell for 100% free. Click here to sign up. |
|
| |
|
| | | | | What to Watch | Earnings: | GameStop Corporation [GME]: Aftermarket Worthington Enterprises, Inc. [WOR]: Aftermarket
Noah Holdings Limited [NOAH]: Aftermarket
| Economic Reports: | S&P Case-Shiller home price index (20 cities) [Jan]: 9:00 a.m. Consumer confidence [March]: 10:00 a.m. New home sales [Feb]: 10:00 a.m.
| |
|
| | | | Food | Spice Maker McCormick Falls Short on Q1 Earnings, Shares Decline | | McCormick & Co. (NYSE: MKC) shares are down 3.5% in early trading today after the company reported disappointing first-quarter earnings that are below Wall Street expectations. | For the quarter ended February 28, McCormick’s adjusted earnings per share of $0.60 is short of the $0.64 consensus estimate. | Revenue is at $1.61 billion, aligning with forecasts, but has no year-over-year growth. | The company is reporting a 2% volume increase, offset by a 2% hit from foreign exchange rates. | Sales in the Consumer division rose 1% organically, while the Flavor Solutions segment saw 3% organic growth. | Operating income dipped 3.6% to $225 million, largely due to higher spending on brand marketing and digital transformation efforts. | However, McCormick’s gross profit margin improved slightly by 20 basis points to 37.6%, supported by productivity initiatives. | Despite the earnings shortfall, the spice and seasoning giant reiterated its full-year 2025 forecast, projecting adjusted EPS between $3.03 and $3.08, in line with analysts' expectations. | The company continues to anticipate 1% to 3% organic sales growth for the year. | As per CEO Brendan Foley, the company is navigating a “dynamic environment” while staying focused on delivering consistent performance and long-term growth. |
|
| | Food | Smithfield Foods Rises After Rebounding From Loss With Solid Q4 Profit | | Shares of Smithfield Foods (NASDAQ: SFD) are climbing in early trading as the company posts its first earnings report since going public earlier this year. | The Virginia-based pork producer delivered stronger-than-expected results and issued a positive forecast for the year ahead. | For the fourth quarter ended December 29, Smithfield reported a profit from continuing operations of $211 million on $3.95 billion in revenue, swinging from a $131 million loss a year earlier when sales were slightly higher at $4 billion. | The results are at the upper end of the company's preliminary guidance shared in its IPO filing. | Looking ahead to fiscal 2025, Smithfield projects adjusted operating profit between $1.1 billion and $1.3 billion, up from $1.02 billion in 2024. | Sales are expected to grow by a low- to mid-single-digit percentage from last year’s $14.14 billion. | Smithfield, once publicly listed before its 2013 acquisition by China’s WH Group, returned to the markets through an IPO in January. | WH Group retains a 90% ownership stake. | Shares are up 3.5% and are now trading just shy of their IPO opening price. | The stock also saw a 3% boost Monday after being added to the Russell 1000 Index, reflecting growing investor confidence in the company’s return to public markets. |
|
| | | | Autonomous Vehicles | Pony.AI Reports Sharp Q4 Loss as Development Costs Surge | | Pony.ai (NASDAQ: PONY) reported a sharply higher net loss for the fourth quarter as the Chinese autonomous driving firm ramps up spending on next-generation vehicle development following its U.S. public listing. | This morning, the company posted a Q4 net loss of $180.9 million, up significantly from a $20.6 million loss in the same period last year. | Revenue for the quarter is down 30% year-over-year to $35.5 million, driven by a drop in robotaxi service revenue and delays in project-based billing recognition. | Revenue from robotaxi operations has plunged 62% to $2.6 million due to lower service fees, while revenue from its autonomous truck services is up 73% to $12.9 million as the fleet expanded into new regions. | Pony.ai attributes much of its widened loss to a near fivefold increase in research and development costs, which climbed to $147.8 million. | The surge includes higher share-based compensation following the firm’s IPO and investments tied to scaling its Gen-7 robotaxi models. | Fourth-quarter gross margin narrowed to 21.0% from 33.9% a year earlier, reflecting changes in revenue composition. | Despite mounting losses, CEO James Peng reiterated the company's target to launch over 1,000 robotaxis this year, calling 2025 a turning point for commercial deployment. |
|
| | Movers and Shakers | | Tenon Medical, Inc. [TNON] - Last Close: $0.98 | Tenon Medical is a medical device company specializing in sacroiliac (SI) joint disorders. | Their flagship product is the Catamaran SI Joint Fusion System, which offers a less invasive approach to SI joint fusion using a single titanium implant. | The company's stock is surging more than 390% following the U.S. FDA’s clearance of an expanded indication for the Catamaran system. | My Take: This FDA clearance significantly enhances the market potential of Catamaran in the spinal surgery sector. Its a major breakthrough for the firm, and investors should definitely keep an eye on this stock for the future. |
|
|
|
| Predictive Oncology Inc [POAI] - Last Close: $1.12 | Predictive Oncology uses AI/ML to accelerate drug discovery. | Its shares are surging 26% in early trading after the company announced successful development of predictive models for AI-driven drug discovery efforts in breast, colon, and ovarian cancers. | My Take: This is a tiny stock with high volatility but great potential. Keep this stock on your radar but invest only after careful evaluation. |
|
|
|
| Power Solutions International, Inc. [PSIX] - Last Close: $29.83 | Power Solutions International designs, engineers, and manufactures advanced clean-tech power systems. | Its shares are rising 13% today after PSIX posted strong Q4 results, with adjusted earnings of $1.03 per share—well above estimates—and a 38% year-over-year jump in revenue to $144.3 million. | My Take: PSIX is showing meaningful momentum with improved earnings and top-line growth. It has strong margins and the stock has been performing well in the last year. Make sure to keep this on your wait and watch list. |
|
|
|
| | Technology (Sponsored) | | | The Magnificent Seven—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla—have redefined market leadership. | But as their record-breaking growth slows, the focus shifts to the next generation of industry leaders. | Analysts have identified seven global companies with the potential to rise above the rest in 2025. | These stocks are poised to surge, fueled by growing market share, robust cash flows, and innovative strategies that set them apart from the competition. | (By clicking the link above, you will get this free report and a free subscription to MarketBeat's daily email newsletter. You are also agreeing to the terms of our privacy policy. Unsubscribe at any time.) | Position yourself to capture the next wave of market-defining opportunities. | Click here to uncover the “7 Stocks That Will Be Magnificent in 2025” before the market catches on. | (By clicking the link above, you will get this free report and a free subscription to MarketBeat's daily email newsletter. You are also agreeing to the terms of our privacy policy. Unsubscribe at any time.) |
|
| | | | 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 |
|
| | | | Click here to get our daily newsletter straight to your cell for free. | P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP. |
| |
|
|
|
