Hot stocks: CTSH gains on guidance; LOGI declines; CAT hits 52-week high; ORMP down 76%
The release of the latest inflation statistics, which showed cooled price gains, pushed the main US equity averages slightly higher on Thursday. This added to the profit recognized prior to the data release.
Upward momentum brought Caterpillar (NYSE:CAT) higher, allowing the stock to set a new 52-week high. Meanwhile, Perception (CTSH) represents one of the day’s standout gainers, with the stock rising after updated guidance and a leadership change.
Looking at some of the most notable losers of the day, Logitech (LOGI) posted a double-digit slippage after issuing a weak forecast. At the same time, Oramed Pharmaceuticals (ORMP) has lost three-quarters of its value due to disappointing clinical trial data.
Prominent bullies
Modification Instructions and a major leadership change prompted the purchase of Cognizant (CTSH). Shares rose nearly 6% on the news.
The IT outsourcing and consulting firm said it now expects Q4 revenue of around $4.8 billion, compared with a previous forecast of $4.72 billion-$4.77 billion. Analysts are looking for a figure around $4.75 billion.
Meanwhile, the company has appointed external chief executive Ravi Kumar S as its new CEO. Kumar previously served as president of Infosys.
CTSH closed Thursday trading at $65.10, $3.60 higher for the day. This rally has contributed to the recent rally, sending stocks to their highest close since mid-September.
Prominent denizen
Logitech (LOGI) posted a significant decline after its release Disappointing preliminary sales figures. The news sent shares down nearly 17%.
The company, which makes computer peripheral products, such as keyboards and mice, has predicted sales in the third quarter will be between $1.26 billion and $1.27 billion. This is lower than the $1.39 billion expected by analysts.
Affected by the forecast, LOGI fell $11.49 to close at $56.66. Kicking off the action on Thursday, the stock hit its highest level since mid-April. With the pullback, the stock has returned to levels last seen in the first half of November.
Overall, LOGI is down 31% over the past year, though the stock remains at a 52-week low of $41.81.
Remarkable new high
caterpillar (CAT) edged higher, supported by upbeat comments from JPMorgan. Shares are up about 2%, adding to recent gains and setting a new 52-week high.
The construction equipment maker finished at $255.07, $4.34 advance on the day. During the session, the stock hit a 52-week intraday high of $257.38.
The advance came when JPMorgan named CAT, along with Agco (AGCO) and Esab (ESAB), as top stock picks in the machinery industry. Talking specifically about CAT, the company said that “the upside potential of the stock is being underestimated by investors”.
Thursday’s rally added to the upward momentum that has dominated trading since late September. The stock is up about 47% over the past six months.
Notable new lows
Dragged down by disappointing clinical trial results, shares of Oramed Pharmaceuticals (ORMP) fell off a cliff. Shares plunged more than 76%.
The company says their product ORMD-0801 failed to achieve the main goal in a late-stage trial. The Phase 3 Study looked at the drug as a treatment for Type 2 Diabetes.
Following the results, Oramed said it expected to discontinue its oral insulin clinical operations for Type 2 Diabetes. The company’s CEO said: “Today’s results are very strong. disappointing, given the positive results from previous trials. After having sufficient data from the studies, we look forward to sharing the relevant knowledge and future plans.”
The ORMP dropped to a 52-week intraday low of $2.32. Shares fell off this level slightly before closing but still ended at $2.54, down $8.25 on the day.
The stock hit a 52-week high of $13.73 earlier this month.
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