The market enjoyed a solid bounce in today’s session, with yields in retreat. It’s undoubtedly a welcomed day of price action following a few weeks of volatility.
And today, there were several high-flyers on the move, including Tesla (TSLA - Free Report) , PPG Industries (PPG - Free Report) , and American Airlines (AAL - Free Report) . For those interested in momentum, let’s take a closer look at what’s moving each.
Tesla
Tesla saw negative coverage following the release of its Q3 EV production and deliveries results despite warning investors of a planned factory shutdown in the prior earnings call. The market has seemed to shrug off the news, with bulls re-taking control of shares.
Regardless, the EV leader produced over 430,000 vehicles and delivered roughly 435,000 throughout Q3, reflecting a sequential decline. Still, the company’s 2023 volume target of 1.8 million vehicles remained unchanged, undoubtedly to the likes of investors.
Despite the recent bounce, Tesla shares are down roughly 9% over the last three months, providing market participants an opportunity to buy shares at discounted levels.
Keep an eye out for the company’s upcoming quarterly release expected on October 18th, as the Zacks Consensus EPS Estimate of $0.74 suggests a 30% pullback from the year-ago period. Analysts have taken their expectations lower following the previously announced factory shutdown, with the estimate down 14% since July.
PPG Industries
Citigroup maintained its buy rating of PPG shares but lowered its price target to $154 per share. Regardless, the updated PT reflects 16% upside from current levels, and investors shrugged off the cut, with PPG shares seeing positive price action.
Still, it’s worth noting that PPG shares have recently broken through the 200-day moving average, a level that shares previously found support.
Investors will likely be better off waiting until PPG shares can clear and hold the 200-day moving average, which would reflect a meaningful change in the current trend.
In addition, the company is expected to see solid growth in its current fiscal year (FY23), with Zacks Consensus Estimates suggesting 24% earnings growth on 3% higher sales. Peeking a bit ahead, estimates allude to an additional 12% earnings growth in FY24 paired with a 3% revenue increase.
American Airlines
American Airlines shares have faced notable selling pressure over the last several months following a hot start to 2023, now flat on a year-to-date basis. The company benefitted from a boom in travel demand, but worries of impending consumer weakness have recently taken hold of shares.
In fact, analysts have taken their earnings expectations lower across all timeframes, further reflecting the current negative sentiment.
The favorable price action in today’s session likely looks to be due to a technical bounce at previous support, as we can see illustrated below. Still, the negative earnings estimate revisions the company has seen remain a critical piece of the story, likely to continue weighing on near-term share performance.
Bottom Line
The market delivered a strong performance today, with green spread across many areas following a tough stretch over last the few weeks.
And throughout the session, several stocks helped lead the general market higher, including Tesla (TSLA - Free Report) , PPG Industries (PPG - Free Report) , and American Airlines (AAL - Free Report) .
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The market enjoyed a solid bounce in today’s session, with yields in retreat. It’s undoubtedly a welcomed day of price action following a few weeks of volatility.
And today, there were several high-flyers on the move, including Tesla (TSLA - Free Report) , PPG Industries (PPG - Free Report) , and American Airlines (AAL - Free Report) . For those interested in momentum, let’s take a closer look at what’s moving each.
Tesla
Tesla saw negative coverage following the release of its Q3 EV production and deliveries results despite warning investors of a planned factory shutdown in the prior earnings call. The market has seemed to shrug off the news, with bulls re-taking control of shares.
Regardless, the EV leader produced over 430,000 vehicles and delivered roughly 435,000 throughout Q3, reflecting a sequential decline. Still, the company’s 2023 volume target of 1.8 million vehicles remained unchanged, undoubtedly to the likes of investors.
Despite the recent bounce, Tesla shares are down roughly 9% over the last three months, providing market participants an opportunity to buy shares at discounted levels.
Keep an eye out for the company’s upcoming quarterly release expected on October 18th, as the Zacks Consensus EPS Estimate of $0.74 suggests a 30% pullback from the year-ago period. Analysts have taken their expectations lower following the previously announced factory shutdown, with the estimate down 14% since July.
PPG Industries
Citigroup maintained its buy rating of PPG shares but lowered its price target to $154 per share. Regardless, the updated PT reflects 16% upside from current levels, and investors shrugged off the cut, with PPG shares seeing positive price action.
Still, it’s worth noting that PPG shares have recently broken through the 200-day moving average, a level that shares previously found support.
Investors will likely be better off waiting until PPG shares can clear and hold the 200-day moving average, which would reflect a meaningful change in the current trend.
In addition, the company is expected to see solid growth in its current fiscal year (FY23), with Zacks Consensus Estimates suggesting 24% earnings growth on 3% higher sales. Peeking a bit ahead, estimates allude to an additional 12% earnings growth in FY24 paired with a 3% revenue increase.
American Airlines
American Airlines shares have faced notable selling pressure over the last several months following a hot start to 2023, now flat on a year-to-date basis. The company benefitted from a boom in travel demand, but worries of impending consumer weakness have recently taken hold of shares.
In fact, analysts have taken their earnings expectations lower across all timeframes, further reflecting the current negative sentiment.
The favorable price action in today’s session likely looks to be due to a technical bounce at previous support, as we can see illustrated below. Still, the negative earnings estimate revisions the company has seen remain a critical piece of the story, likely to continue weighing on near-term share performance.
Bottom Line
The market delivered a strong performance today, with green spread across many areas following a tough stretch over last the few weeks.
And throughout the session, several stocks helped lead the general market higher, including Tesla (TSLA - Free Report) , PPG Industries (PPG - Free Report) , and American Airlines (AAL - Free Report) .
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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