INFY - Hot Stocks: SPWH INFY drop on earnings news; AU hits 52-week high on gold rally; CRSP soars

2023-04-13 18:35:19 ET

Fueled by cooler-than-expected wholesale inflation statistics, stocks pushed higher on Thursday, led by a nearly 2% rise in the Nasdaq. The S&P 500 climbed 1.3%.

CRISPR Therapeutics ( NASDAQ: CRSP ) represented one of the day's standout gainers, posting a double-digit percentage rally following an optimistic analyst comment. Meanwhile, higher gold prices took AngloGold Ashanti ( AU ) to a new 52-week high.

Turning to some of the day's laggards, Sportsman Warehouse ( SPWH ) dropped on a weak forecast and a major leadership change. At the same time, disappointing results weighed on Infosys ( INFY ).

Standout Gainer

A bullish analyst comment sparked buying in CRISPR Therapeutics ( CRSP ). The stock jumped 16% after Cantor Fitzgerald gave an upbeat assessment of the prospects for the company's gene-editing therapy exa-cel.

Cantor Fitzgerald initiated coverage of CRSP with an Overweight rating. "The company has a very good chance of commercializing the first-ever CRISPR gene therapy later this year (a functional cure for sickle cell disease and beta-thalassemia)," analyst Olivia Brayer noted.

CRSP finished Thursday's trading at $50.56, an advance of $7.09 on the day. The upswing took the stock above a recent trading range and to its highest level since early March.

Standout Decliner

Sportsman Warehouse ( SPWH ) dropped in the wake of its quarterly results, which included a disappointing forecast for the current quarter. The company also announced the retirement of its CEO. Following the news, shares of the outdoor sporting goods retailer dropped 13%.

The company beat expectations with its Q4 earnings and revenue. However, SPWH predicted a comparable sales drop of 17% to 19% in Q1. At the same time, the firm forecast quarterly revenue of $265M-$270M, below the $320M that analysts were projecting.

The company also announced that its CEO, Jon Barker, would retire, effective April 14. The company has retained a firm to search for a successor.

Amid the guidance and the leadership change, SPWH dropped $1.10 to close at $7.21. Shares also touched an intraday 52-week low of $5.93.

With the retreat, the stock reversed a rebound seen in late March and early April, adding to the weakness seen earlier in the year. SPWH has fallen 22% in 2023.

Notable New High

A further rise in gold prices gave a lift to mining stocks, with several high-profile names reaching new 52-week highs. This included AngloGold Ashanti ( AU ), which rose an additional 4% on the day, adding to a rally that has marked trading for more than a month.

Front-month Comex Gold for April delivery settled at $2,041.30/oz, rising 1.5% on the day. The commodity reached a new 52-week high and recorded its second-highest close in history, just below a record high of $2,051.50 established in 2020.

Thanks to this advance, AU closed at $28.06, rising $1.09 on the day. During the session, shares also established an intraday 52-week high of $28.12. This added to a recent uptrend, with the stock climbing 42% in the past month.

Notable New Low

The release of disappointing quarterly results sent Infosys ( INFY ) to a new 52-week low, with shares of the consulting, IT and outsourcing firm dropping almost 10%.

The company reported a quarterly profit that came in below the amount that analysts were predicting. Meanwhile, revenue also came up short, despite 6% growth from last year. The top-line figure totaled $4.55B, $180M below the consensus estimate.

Dragged down by the earnings news, INFY slumped to an intraday 52-week low of $15.33. Shares edged off that mark by the close but still ended at $15.40, a decline of $1.67 on the day.

Overall, INFY has dropped about 16% in 2023 and about 25% in the past 12 months.

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

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