Shares of biopharmaceutical company Incyte Corporation (NASDAQ:INCY)
jumped 2.4% in the afternoon session after Barclays initiated coverage on the stock with an Overweight rating, helping the shares reach a new 52-week high. The investment bank noted a "compelling inflection point" for the biotechnology firm, highlighting multiple maturing assets that could drive future revenue growth. Further bolstering investor confidence, RBC Capital raised its price target on Incyte to $72, citing strong demand-driven growth from its products. The stock's climb to a 52-week high of $87.27 reflects significant positive momentum, building on a 22.5% year-to-date return. The move was also supported by broader strength in the biotechnology sector and a positive technical trend, with the stock trading above its key 50-day and 200-day moving averages.
Shares of alcohol company Brown-Forman (NYSE:BF.B)
fell 2.4% in the afternoon session after competitor Constellation Brands warned of macroeconomic headwinds affecting consumer demand.
Shares of beer, wine, and spirits company Constellation Brands (NYSE:STZ)
fell 7.4% in the morning session after the company lowered its financial outlook for fiscal year 2026, citing a challenging macroeconomic environment and weakening consumer demand. The owner of popular brands like Corona and Modelo now projects comparable earnings per share of $11.30 to $11.60, a significant reduction from the prior forecast of $12.60 to $12.90. The company also expects a 4% to 6% decline in organic net sales. Management attributed the revision to a sudden drop in beer sales, noting that purchasing declines among Hispanic consumers—a key demographic—were particularly pronounced. This trend, combined with lower volumes and the impact of tariffs, prompted the more cautious outlook.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at engineered components and systems stocks, starting with RBC Bearings (NYSE:RBC).
Shares of alcohol company Brown-Forman (NYSE:BF.B)
fell 4% in the afternoon session after RBC Capital expressed caution about the company's near-term outlook, citing pressure in the U.S. market and challenges with its distribution network.
Shares of beer, wine, and spirits company Constellation Brands (NYSE:STZ)
fell 3% in the afternoon session after a downgrade from Bank of America Securities, which lowered its rating on the stock to Underperform from Neutral and slashed its price target.
Shares of beer, wine, and spirits company Constellation Brands (NYSE:STZ)
fell 3.3% in the afternoon session after RBC Capital trimmed its price target on the stock to $230 from $233, though it maintained an Outperform rating.
A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Shares of video communications platform Zoom (NASDAQ:ZM) jumped 10.8% in the afternoon session after the company reported second-quarter financial results that beat analyst expectations. The company's revenue grew 4.7% year-over-year to $1.22 billion, its fastest pace in 11 quarters, while adjusted earnings per share of $1.53 also surpassed estimates. The company also raised its full-year guidance for both revenue and adjusted EPS. The solid results prompted at least one analyst to become more bullish on the stock's prospects. Following the report, RBC Capital raised its price target on the stock to $100 from $95, maintaining an Outperform rating. The strong earnings and positive analyst sentiment fueled the stock's upward momentum.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Shares of fast-food chain Jack in the Box (NASDAQ:JACK)
fell 4.6% in the afternoon session after multiple Wall Street analysts lowered their price targets on the stock. The negative sentiment from Wall Street follows price target reductions from several financial firms. While maintaining their ratings, analysts adjusted their outlooks. TD Cowen lowered its target from $25 to $21, and RBC Capital cut its target to $22 from $30. Similarly, Truist Securities and Barclays both reduced their price targets to $19. Oppenheimer also made a significant adjustment, lowering its target from $44 to $28. These widespread reductions from multiple analysts suggest a more cautious view on the company's near-term stock performance, even though the underlying 'buy' or 'hold' ratings were unchanged.
Shares of residential solar energy company Sunrun (NASDAQ:RUN) jumped 10.4% in the afternoon session after RBC Capital upgraded the stock to 'Outperform' from 'Sector Perform,' citing greater certainty around federal solar tax credits.
Sunrun is experiencing another surge in positive sentiment from Wall Street. RBC Capital upgraded the residential solar company's stock from Sector Perform to Outperform.
Shares of ride sharing service Lyft (NASDAQ: LYFT)
jumped 9.5% in the afternoon session after the company announced its co-founders, Logan Green and John Zimmer, will step down from the board next year. The rideshare company announced that co-founders Logan Green and John Zimmer will exit the board in August 2025, completing a two-year transition plan. As part of the change, they will convert their special Class B shares to Class A shares, eliminating the dual-class structure and establishing equal voting rights for all shareholders.
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Their momentum is also rising as lower interest rates have incentivized higher capital spending.
As a result, the industry has posted a 7.5% gain over the past six months, beating the S&P 500 by 2.1 percentage points.
Shares of ride sharing service Lyft (NASDAQ: LYFT)
jumped 3.5% in the afternoon session after a wave of positive analyst commentary pointed to a strong growth outlook. RBC Capital reiterated its Outperform rating on the stock with a $21 price target, citing a confident tone from management regarding the company's future. This sentiment was supported by a Seeking Alpha report highlighting that Lyft has greater upside potential than its rival Uber, due to a more focused operation and a lower valuation. While the company's recent second-quarter results were mixed, with a slight miss on revenue, investors appear to be focusing on the positives, such as record gross bookings, robust rider growth, and operational improvements. Management has signaled a 'thriving marketplace' and expects a stronger second half of the year.
RBC Bearings’ second quarter results received a positive market response, as the company delivered year-over-year revenue growth and exceeded Wall Street’s expectations. Management credited robust demand in the Aerospace and Defense segment, with particular strength in both commercial and defense aftermarket sales. CEO Michael J. Hartnett highlighted that the aircraft aftermarket expanded 22.6% and defense aftermarket grew 11.9%, while industrial distribution also performed well. The company’s backlog surpassed $1 billion for the first time, with Hartnett noting, “We are well positioned in our markets. We see unprecedented demand in several important areas.”
