TSLA - Hot Stocks: ZS rises on earnings; S down on analyst downgrade; DD CC CTVA and TSLA gain

2023-06-02 12:11:46 ET

Major market averages increased during Friday's intraday session as a result of stronger than anticipated Nonfarm Payrolls for the month of May.

Looking at specific stocks, DuPont ( NYSE: DD ), Chemours ( NYSE: CC ) and Corteva ( NYSE: CTVA ) all saw gains following the $1.185B settlement of PFAS-related water lawsuits.

At the same time, shares of Zscaler ( NASDAQ: ZS ) rose on the heels of solid Q3 financial results and a positive forecast for the rest of the year, while shares of Tesla ( NASDAQ: TSLA ) rose on news that China is preparing to expand tax incentives to boost EV sales.

Among the decliners include SentinelOne ( NYSE: S ), which slipped after an analyst cut their rating, and Carvana ( NYSE: CVNA ), whose shares dipped after the company terminated its tender offerings for notes worth up to $1 billion.

Gainers

After reaching an agreement in principle to resolve all PFAS-related drinking water claims for $1.185B of public water systems that serve "a vast majority" of the U.S. population, the stock prices of Corteva ( +3.7% ), The Chemours ( +24.1% ), and DuPont ( +8.2% ) all increased. Chemours ( CC ) contributed 50% to a settlement fund, or $592M, and DuPont ( DD ) and Corteva ( CTVA ) contributed the other 50% ($400M and $193M respectively).

The shares of Zscaler ( ZS ) increased by roughly 7% on upbeat Q3 earnings and forecast . The company anticipated Q4 EPS of approximately $0.49, compared to the consensus of $0.47, and fiscal year 2023 EPS in the range of $1.63 to $1.64, compared to the consensus of 1.56.

Tesla ( TSLA ) shares jumped more than 4% after a Bloomberg report stated China is planning to extend EV tax incentives as sales growth slows. According to the CPCA, deliveries of EVs and plug-in hybrids increased by roughly 36% from January to April, a far slower rate than the 128% increase for the same four-month period last year.

Decliners

SentinelOne ( S ) shares plummeted more than 37% after the company's fiscal 2024 revenue outlook was reduced to $590M-$600M from $631M-$640M, compared to the consensus estimate of $637.63M, and it was downgraded to Hold by Canaccord Genuity due to the slower growth rate, significant ongoing operating losses, and the accounting change. BTIG also downgraded the stock to Neutral from Buy.

Carvana ( CVNA ) shares fell nearly 4%, but was paring losses at midday, as the company canceled its exchange offers for up to $1B of notes after the minimum participation criterion of $500M was not met by the deadline.

To keep track of Wall Street's biggest winners and losers throughout the session, head over to Seeking Alpha's On The Move section .

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