Dollar Tree
Shares of discount retailer Dollar Tree (DLTR) rallied Grand counter to the general market trend today is the stock was up more than 7%.
The move comes after a rough two weeks of trading It saw Dollar Tree shares drop more than 35%.
The catalyst for that drop was the company’s poor earnings report on September 4th. Or earnings per share missed estimates by $0.37 and revenue slowed to almost a negative pace on a year over year basis. Those numbers show a continued weakening trend among the lower-income retail shopping chains.
In addition to poor earnings results for the last quarter, company management lowered third quarter expectations for revenue and earnings per share, as well as fiscal year 2025 expectations.
On Thursday analysts from Telsey Advisory Group Reiterated their Outperform rating on the stock, but lowered their price target from $120 to $95.
Shares The advisory group just bounced off the $60.00 level. And are rising from an oversold reading of their RSI. Those oversold conditions typically result in a dead cat bounce.
Looking at Dollar Tree’s chart, the stock has been entrenched in an intermediate term bearish trend Since April.
From a long-term perspective, Dollar Tree’s shares have been in a long term bear market trends since June of last year.
C3.ai, Inc.
Shares of C3.ai (AI) fell more than 8% today after the company’s earnings results were released after the close on Wednesday.
The company’s first quarter Earnings were better than analysts expectations. Earnings per share came in eight cents better than expectations, while revenue grew at 20% year over year.
Management’s guidance was in line with expectations for the next quarter and for fiscal year 2025.
Investor’s initial reaction to the earnings report was to sell the stock 20% lower in after-hours trading on Wednesday.
Thursday’s regular session trading took the stock down 18% and below the $20 level Before seeing buyers step in to add support at $20.
Looking at the stocks price chart, C3 AI 50 day moving Average slipped into a bearish trend in mid August. In addition, That trend line crossed below the 200 day moving average, forming what is referred to as a death cross pattern.
The death cross pattern signifies weaker momentum for any stock, providing bearish outlook over the next 4-6 weeks.
C3.ai’s long-term trend is in a bearish trend with a price target of $15.
Hewlett Packard Enterprise
share the Hewlett Packard Enterprise (HPE) went on a wild ride today as stock dropped more than 10% to its lows before rallying to close the day 6% lower.
Shares were reacting to the earnings report that came out after the close on Wednesday afternoon. For the company’s third quarter, they beat earnings per share expectations by three cents, with a showing of $0.50 per share. Revenue for the quarter came in slightly better than expectations and showed a 10% year-over-year growth.
The growth in revenue compares to 3.3% last quarter as the company continues to benefit from the shift to AI Service technology companies.
The reason for the sell off appears to be the over enthusiasm towards AI and AI service stocks this earnings. Many companies like NVIDIA have met or exceeded estimates, but not investor’s extremely high “expectations”.
Shares of HPE reacted strongly to Technical Support today.
The stock’s 200 day moving average is currently sitting at $17.60, just three cents below the stock’s closing price for the day. This trend line also offered support for the stock in early August.
From a long term perspective, Hewlett-Packard Enterprise shares remained in a long term bull market that started when the stock crossed above its twenty month moving average in November of 2022.
The stock continues to see support at that key trend line, which is about 5% below today’s close.
Hewlett-Packard shares remain in a long term bull market trend with the target price of $25.
