GRWG - Hot Stocks: Cannabis rally; WKHS jumps on USPS deal; FOR drops on earnings; NEM sets 52-week low

Optimism about incoming corporate results and easing fears about Federal Reserve policy provided the backdrop for stocks to post another positive session on Wednesday. The Nasdaq led the advance, which built on a broad-based rally staged during the previous day.

Wednesday's gains included strong buying interest in the cannabis sector. Boosted by hope surrounding an upcoming Senate hearing on decriminalization, Canopy Growth ( CGC ), Tilray ( TLRY ), GrowGeneration ( GRWG ), Cronos Group ( CRON ) and Aurora Cannabis ( ACB ) all recorded notable gains.

Elsewhere, Workhorse Group ( WKHS ) represented another standout performer. Shares jumped on an increased commitment for EVs from the U.S. Postal Service. Meanwhile, Lantheus Holdings ( LNTH ) added to its recent momentum, securing a new 52-week high.

Turning to some of the day's laggards, Forestar Group ( FOR ) dropped on disappointing earnings news. At the same time, Newmont ( NYSE: NEM ) followed gold prices lower, setting a fresh 52-week low.

Sector In Focus

Renewed hope that the U.S. will eventually legalize marijuana on a federal level prompted an upswing in shares of cannabis companies. The latest encouraging sign came from news that a Senate subcommittee will host a hearing on potentially decriminalizing the product. The meeting is set for July 26.

Canopy Growth ( CGC ) represented one of the standouts in the sector, rising by about 17%. Tilray ( TLRY ), GrowGeneration ( GRWG ) and Cronos Group ( CRON ) all recorded double-digit percentage gains as well. Aurora Cannabis ( ACB ) rose 9%.

Standout Gainer

A major commitment from the U.S. Postal Service sparked buying in Workhorse Group ( WKHS ). Shares of the electric vehicle maker jumped 16% on the news.

Under the updated agreement the USPS will buy at least 25K electric delivery vehicles from Oshkosh Defense. This represented an increase from just over 10K that was originally contemplated.

News of the deal spurred a gain of 50 cents on the day, with WKHS ending the session at $3.63. This allowed the stock to record its highest close since the first half of April.

Standout Loser

Forestar Group ( FOR ) took a tumble following the release of a disappointing quarterly report and unsettling guidance. The earnings news sent shares of the residential lot development company lower by more than 10%.

The firm reported Q3 revenue of about $309M, a 1% decline from last year. Analysts had expected to figure to show robust growth, with Wall Street experts predicting a figure around $406M.

Looking ahead, FOR predicted that it will deliver about 17K lots in 2022, generating $1.425B in revenue. This came in below its previous forecast, which called for between 19.5-20K lots and revenue of $1.7B.

Hurt by the quarterly report, FOR dropped $1.63 to close the session at $14.21. Shares had lost ground earlier in the year amid signs of a cooling housing and real estate market. The stock had rebounded in the weeks leading up to the earnings report.

Wednesday's slide reversed a good portion of its recent recovery, although the stock remained off its previously set 52-week low of $13.06. Overall, FOR has dropped about 36% in 2022.

Notable New High

Lantheus Holdings ( LNTH ) extended its 52-week high, adding another 4% on Wednesday. The advance continued upward momentum originally generated after a blockbuster earnings report released in late February.

LNTH finished the session at $74.16, an advance of $2.68. During the day, shares of the provider of diagnostic imaging and nuclear medicine products also established an intraday 52-week high of $75.09.

Wednesday's gains built on a rally that began in late February, when the stock jumped 39% in a single session after beating expectations with its quarterly result and revealing an upbeat forecast.

LNTH extended this rally up with another 16% advance the following day. The upward momentum has largely continued since, with the stock rising almost 160% since its closing price the day before the February earnings announcement.

Notable New Low

With gold losing ground again and reaching its lowest level in more than a year, Newmont ( NEM ) extended a long-standing downtrend to reach a new 52-week low. This came as the stock shed another 4%

Shares of the Colorado-based gold miner retreated $2.34 to end the session at $52.31. Shares also reached an intraday 52-week low of $52.23.

The retreat came as gold prices took another step down. Front-month Comex gold ( XAUUSD:CUR ) for July dipped below $1,700 an ounce, marking its lowest settlement value since March 2021. The figure also represented a nearly 17% drop from March of this year, when the commodity hit its 52-week high.

With the steady retreat of gold, NEM has fallen from a 52-week high of $86.37 reached in mid-April. Shares have now dropped almost 40% from that peak.

For more on the day's biggest winners and losers, head over to Seeking Alpha's On The Move section .

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