BBBY - Hot Stocks: BBBY leads meme stocks higher; JBL BROS extend gains; CVLT drops on guidance

Upbeat sentiment ahead of a key inflation report fueled a Wall Street rally on Wednesday. With investors looking ahead to Thursday's CPI print, the Nasdaq surged 1.8%, while the S&P 500 recorded a gain of 1.3%.

With the overall market advancing, investors poured into former meme names. Bed, Bath & Beyond ( NASDAQ: BBBY ) skyrocketed nearly 70%, with substantial gains also coming from former high-fliers like Carvana ( CVNA ), AMC Entertainment ( AMC ) and GameStop ( GME ).

Elsewhere in the market, Jabil Inc. ( JBL ) took advantage of the general push higher to extend its recent gains and reach a new 52-week high. Dutch Bros ( BROS ) was another standout gainer, also building on a recent upswing.

Looking to the downside, Commvault ( CVLT ) posted a double-digit percentage decline following the release of disappointing guidance.

Sector In Focus

Bed, Bath & Beyond ( BBBY ) highlighted a rally in former meme stocks, as the overall stock market benefited from a risk-on bet. This led to a surge in beaten-down names that had previously had significant support from segments of the retail trading community.

For BBBY, the stock surged almost 69%, adding to an advance of nearly 28% the previous day and a gain of nearly 24% on the day before that. This upswing, in turn, followed losses of 30% and 22% in the preceding two sessions.

BBBY closed Wednesday at $3.49 after hitting an intraday 52-week low of $1.27 last week. Still, BBBY remains well off its 52-week high of $30.06.

Elsewhere, Carvana ( CVNA ) soared 24%, while AMC Entertainment ( AMC ) jumped 21%. Meanwhile, GameStop ( GME ) climbed more than 7%.

Standout Gainer

Dutch Bros ( BROS ) pushed higher again on Wednesday, rising another 9%. This built on gains posted earlier in the week amid a strong forecast.

BROS finished at $35.78, an advance of $3.06 on the day. This marked the third consecutive day of gains and the stock's fifth advance in the past six sessions.

The stock rallied almost 7% on Monday after the company presented strong guidance at the ICR Conference. The coffee chain said it is targeting 150 new stores in 2023 and revenue approaching $1B.

Shares have climbed 25% in the past week, cutting losses seen in December. With Wednesday's advance, BROS recorded its highest close in more than a month.

Standout Decliner

The release of disappointing guidance prompted selling in Commvault ( CVLT ), with the stock slumping more than 14%.

The data protection and data management software company said it sees Q3 total revenues of $195.1M, a decline of 4% from last year. Analysts were looking for a figure around $204M.

"As customers and prospects continue to grapple with an uncertain outlook, we experienced slower than expected buying patterns and close rate execution. As a result, we saw a pullback in orders in December, particularly in our Americas software business," the company's CEO said.

With the slide, the stock reversed gains posted late last year. Shares reached their lowest close since mid-October.

Notable New High

Jabil Inc. ( JBL ) extended a recent upswing with an additional 4% rise, setting a new 52-week high.

JBL climbed $2.81 to close at $75. During the session, the stock also recorded a new intraday 52-week high of $75.11.

This added to a recent surge, with JBL recording its fourth consecutive day of gains. The recent upswing reversed losses seen in late December, with the stock adding to gains since reaching a 52-week low of $48.80 in mid-2022.

Shares are up 45% over the past six months but are holding a gain of only about 7% over the past year.

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