Pre Market Movers: Stocks to Watch Today

Chris Dios - November 1, 2019

Halloween is over and we are officially entering the holiday season. Between friendly central bank policy and stronger-than-expected earnings, the market could be headed for a strong performance to close out the year. Stocks are down slightly since they set record highs earlier in the week, but the upward trend remains intact. The major indices are currently in positive territory, and pre-market movers are breaking out.

Pre Market Movers

These pre-market movers are in the spotlight this morning.

pre market movers

Installed Building Products reported a record-breaking quarter on Friday, and its stock was active in pre-market trading. Above: IBP rings the bell at the New York Stock Exchange

Installed Building Products (NYSE: IBP)

This construction stock announced a record-breaking third quarter this morning. Net income grew by 36% since the same time last year, and net revenue was up over 13% year-over-year. IBP’s non-insulation revenue and commercial construction revenue helped fuel the company’s best quarterly EBITDA performance it’s ever had.  EBITDA for the third quarter came in at $55.9 million, a year-over-year gain of 28%.

IBP Chairman and CEO, Jeff Edwards, is confident that the company is in a good position. “Our strong capital position, combined with our compelling operating cash flow, provides us with the financial flexibility to support our growth strategies and pursue acquisitions that continue to expand our geography and diversify our end-products and end-markets,” he stated in a company press release

Small-cap homebuilder stocks, like IBP, could be a great way to play the booming real-estate market. It’s a seller’s market right now, so there will be a lot of work going around for homebuilders, and small-cap stocks have more potential for growth than the larger, more established companies.

Alibaba Group Holding Ltd. (NYSE: BABA)

This Chinese e-commerce titan is one of the biggest names on pre-market movers this morning. Baba posted a sizeable beat on its quarterly report today. Revenue of US$16.91 billion for the last quarter was up 39.7% from the same time last year, topping consensus estimates by 1.9%. That might not sound like much but, remember, this is a massive company. That 1.9% beat equals an additional US$300 million in revenues.

pre market movers

Alibaba posted a double-line beat in its quarterly report, with strong growth in its cloud computing business. Above: Alibaba founder Jack Ma at a company event.

Baba is becoming a bigger player in the cloud computing industry as well. The company’s cloud business grew by a staggering 64% YoY and generated over US$1.32 billion in revenues for the company last quarter. Alibaba reported 785 million mobile monthly active users. Net earnings for the quarter also topped estimates, with EPS of US$1.83 beating the consensus forecast of US$1.52.

Despite the ongoing trade conflict with China, Alibaba’s stock held up better than other Chinese companies this year. It’s up 29% for the year, outperforming both the S&P500 and (AMZN). This could be a great stock to pick up for the long-term. Once the trade conflict cools off, BABA shareholders could see a significant pop.

Newell Brands Inc. (NASDAQ: NWL)

Shares of Newell Brands are on the move this morning after the company reported better-than-expected earnings and revenues in the third quarter. The branded consumer product firm’s double-line beat rallied the stock and it’s currently holding at a 4.6% gain in early pre-market trading.

The company behind well-known brands like Sharpie, Rubbermaid, and Yankee Candle failed to turn a profit in the third quarter, but its losses were narrower than Wall Street expected. Newell lost $625.8 million over the last quarter, equalling losses of $1.48 per share. That might sound awful but it’s nothing compared to Q3 2018 when the company lost over $7.3 billion for negative EPS of $15.52 per share. However, last quarter’s losses resulted from over a $635 million impairment charge this last year. Newell’s adjusted earnings, which don’t include one-time losses,  showed a profit of $0.73 per share, beating Wall Street’s adjusted earnings estimate of $0.55 per share. Overall, the performance topped expectations, but sales were still down 3.8% from this time last year.

The company is betting that the turnaround will continue. Newell raised its 2019 sales guidance to $9.6 billion from its previous forecast of $9.1 billion. It also upped its EPS guidance to $1.63 from $1.50.

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Chris Dios is an American writer and entrepreneur based in the Greater NYC area.

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