It’s a good start for the markets today. According to data by Factset, big companies raised their Q3 estimates by 1.1% in July. Historically, companies usually cut their estimates at the start of the quarter, which makes the current move an exception. Data shows that in the past 5-years, the average decline in bottom-up earnings per share at the start of a quarter is 2.8%. The increased estimates point to higher confidence in the corporate world that the economy could be getting better. That’s because such numbers mean that stocks are fairly priced and that there is room for growth. Putting this in the context of the wider market, the higher estimates are related to the government’s move to support the economy through the CARES Act. In this environment of increased optimism, a number of stocks have gained significant upside momentum in early morning trading. Some of the biggest gainers pre-market are as below:
Vislink Technologies Inc [NASDAQ:VISL]
This stock is on a roll pre-market and is up by over 500%. This rally is driven by two key factors. The first one is the increased optimism in the market, as shown by the higher quarterly estimates. Secondly, is the company’s reverse 6-1 stock split. The stock split will come into effect today under number 92836Y 300. CEO, Mickey Miller stated that they had made major progress in turning around operations by bringing in new leadership. He added that the stock split is a step towards keeping its listing on the NASDAQ and continued value growth.
Highway Holdings Limited [NASDAQ:HIHO]
Highway Holdings Limited is another top performer pre-market and is up by over 100%. This is largely momentum-driven as there is no major news happening around this company at the moment. Late last week, the company announced that it was delaying the release of 2020 financial results due to the COVID-19 pandemic. However, the company stated that the delay will not impact its ability to file proxy statements and it’s AGM that will take place in October. Going by its current momentum, a positive start to the markets could see it make significant gains in the day.
Immunic Inc [NASDAQ:IMUX]
Immunic Inc is another top performer pre-market and is up by over 30%. Its momentum is driven by news of positive top-line data from the phase 2 study of EMPHASIS trial for its treatment called IMU-838. The study showed that the treatment met its primary endpoints in safety and tolerance. Besides positive treatment data, the company reported Q2 results that show that it in the quarter, it had cash and cash equivalents of $48.6 million.