WEBR - Hot Stocks: Cannabis rally; XRX CCK fall on earnings; WEBR jumps on takeover bid

Stocks finished higher for the third consecutive session on Tuesday, as a fall in yields and an optimistic approach to the early earnings season gave support to the major U.S. equity averages. The Nasdaq led the advance, climbing by more than 2%.

The rally included an upswing in cannabis stocks, helped by an acquisition in the sector. This led to gains in names like Canopy Growth ( CGC ), Tilray ( TLRY ), Aurora Cannabis ( ACB ), SNDL Inc. ( SNDL ) and Cronos Group ( CRON ).

Weber ( NYSE: WEBR ) represented another standout gainer, jumping on news of a takeover offer from its largest shareholder.

Not every stock benefited from the general updraft. Xerox ( XRX ) and Crown Holdings ( CCK ) both suffered double-digit percentage declines following the release of their respective quarterly results.

Sector In Focus

A merger in the sector gave a lift to the cannabis stocks, with investors pouring into names based in Canada. The rally followed a deal for Canopy Growth ( CGC ) to acquire US multi-state operator Acreage Holdings ( OTCQX:ACRHF ).

Based on the news, CGC jumped 27%. Meanwhile, the halo effect carried over to high-profile players in the space, including Tilray ( TLRY ), which climbed 13%.

Meanwhile, Aurora Cannabis ( ACB ) soared by 19%, SNDL Inc. ( SNDL ) climbed about 9% and Cronos Group ( CRON ) advanced by 7%.

Standout Gainer

Weber ( WEBR ) skyrocketed after receiving a buyout offer from BDT Capital. In the wake of the bid, shares of the grill maker soared more than 30%.

BDT Capital, which already holds 88.9% of WEBR, proposed to purchase the rest of the shares that it does not already own at a price of $6.25 per share. The company said it has formed a committee of its board of directors to evaluate the offer.

WEBR jumped $1.53 on Tuesday to close at $6.56 -- above the bid price. The advance allowed the stock to bounce off a 52-week low of $4.82 reached earlier this week.

Longer-term, WEBR, which came public last August at a price of $14 a share, remains well off a 52-week high of $17.49 set late last year. Shares have fallen 47% in 2022.

Standout Decliner

Xerox ( XRX ) endured significant selling pressure following the release of its financial figures. Hurt by a lowered free cash flow forecast, the stock dropped 14%.

The company's Q3 profit came in below expectations on revenues that ticked down 0.6% from last year. The top line totaled $1.75B for the quarter.

Looking ahead, XRX slashed its free cash flow target. The company said it now sees a number totaling at least $125M, compared to its previous forecast of at least $400M. The company blamed slower-than-expected supply chain improvements and persistently high rates of inflation for the forecast.

XRX closed Tuesday's trading at $13.68, a decline of $2.23. Shares also touched an intraday 52-week low of $11.80, although it finished above a closing low of $13.08 set on September 30.

Notable New Low

The release of a disappointing quarterly report sparked selling in Crown Holdings ( CCK ). Shares of the maker of metal beverage and food cans plunged 17% to reach a new 52-week low.

CCK reported a quarterly profit that missed expectations , as the company suffered from persistent inflation pressure. Revenue rose almost 12% to $3.26B, although this growth fell short of projections.

“While shipments advanced versus the prior year, they were short of our earlier expectations leading to more inventory on hand throughout and at the end of the quarter,” CEO Timothy Donahue noted.

Dragged down by the weaker-than-expected results, CCK slumped to an intraday 52-week low of $66. Shares rebounded a bit before the close but still finished at $70.69, a decline of $14.32 on the day.

Overall, the stock has lost more than a third of its value in the past six months.

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

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