The markets are headed for a weak start this morning due to data showing that job losses in July rose by 54%. According to data by Challenger, Gray and Christmas, the number of job cuts rose by 54% in July after declining for two months in a row. The data further showed that the job cuts were mainly due to the hard economic times occasioned by the COVID-19 pandemic. Others were due to severance following corporate buyouts. Overall, the data points to an economy that has been weakened by the pandemic, and market sentiment in pre-market trading is a reflection of it. Nonetheless, there are stocks that are gaining upside momentum this morning. Most of the top performers are stocks that have released strong quarterly results. Such companies have demonstrated an element of resilience despite the COVID-19 pandemic and inspire investor confidence. Some of the top performers this morning are as below:
Groupon Inc [NASDAQ: GRPN]
Groupon Inc is a top performer this morning and is up by 37% in pre-market trading. This follows the release of Q2 results that point to revenues that have beat analysts’ estimates. The company reported revenues of $395.65 million, beating analyst consensus estimates by 115.07%. The company also beat analysts’ consensus estimates on earnings. It reported an earnings loss of $0.93 while analyst consensus was a loss of $2.63. This points to the company’s resilience in its core markets, even as the COVID-19 pandemic continues to impact on demand in the economy.
Pius Therapeutics Inc [NASDAQ: PSTV]
Pius Therapeutics Inc is a top performer pre-market and is up by 30%. Its pre-market gains are a continuation of days of upside momentum after the company announced that it would report Q2 results on August 10th. The rally is an indicator of anticipation of strong results in the quarter.
Celsius Holdings Inc [NASDAQ: CELH]
Holdings Inc [NASDAQ: CELH] is a top performer this morning and is up by over 40% this morning. This follows the company’s release of strong Q2 results. The company reported that in the quarter it had an EPS growth of 300% to hit $0.04. This was much higher than the EPS loss of $0.07 that the company was anticipating. While revenues decreased by 28.83%, they still beat analyst estimates of $55,230,000 to stand at $62,685,000. Besides earnings, the company reported that it had entered into an agreement with J.D. Power for the sale of its subsidiary for $135 million. While announcing the sale, the company also reported that its board had agreed to a share repurchase of up to $75 million worth of shares. These news have sent the stock rocketing in pre-market trading.