Hot Stocks: Massive travel sales; JPM New Low; CLC new summit; GDRX plunges on earnings
Shares fell on Tuesday as ongoing fighting in Ukraine triggered a massive rise in oil prices. The S&P 500 fell almost 1.6%, retracing some of the gains posted at the end of last week.
The impact of the Russian invasion of Ukraine shook large parts of the market. This included the travel sector, where airlines were dragged down by soaring fuel prices. Ryanair (NASDAQ: RYAAY)United Airlines (NASDAQ: UAL)JetBlue (NASDAQ: JBLU)American Airlines (NASDAQ: AAL) and South West (NYSE:LUV) all terrain lost, with TripAdvisor (NASDAQ:TRIP) and Expedia (NASDAQ: EXPE) also showing notable declines.
Meanwhile, sanctions from the conflict, along with a drop in bond yields, dragged financial stocks lower. JP Morgan (NYSE: JPM) offered a high-profile example, falling to a new 52-week low.
On the other side of the spectrum, Chevron (NYSE: CVX) was stimulated by the continued rise in crude prices. With additional support from an increased share buyback program, the stock hit a 52-week high.
Some stocks have moved on their own headlines, not driven by the unfolding crisis in Europe. This category included TaskUs (NASDAQ: TASK)which posted a double-digit percentage gain in the wake of its quarterly report.
Earnings news had the opposite impact on GoodRx (NASDAQ:GDRX). Shares plunged almost 40% on the release of disappointing results and weak forecasts.
Focus on the sector
Travel stocks slumped as the ongoing conflict in Ukraine raised concerns about global geopolitical tensions and drove up oil prices. The sharp rise in fuel prices has put particular pressure on businesses like airlines, which are still trying to get back on their feet after the pandemic.
Ireland-based Ryanair (RYAAY) was among the biggest losers among airlines, falling nearly 11%. United Airlines (UAL), JetBlue (JBLU) and American Airlines each fell 6%. The South West (LUV) fell 4%.
Among other travel stocks, TripAdvisor (TRIP) posted a 7% loss, while Expedia (EXPE) slipped 4%.
The release of earnings information triggered a 16% increase in TaskU (TASK). The outsourcing company posted better-than-expected revenue in the fourth quarter and provided an optimistic forecast.
TASK reported quarterly revenue of $226.8 million, beating expectations and posting 63% year-over-year growth. The company’s adjusted EBITDA jumped 71% to $56.2 million.
The company’s guidance for the first quarter also exceeded expectations. TASK was aiming for revenue of between $229 million and $232.2 million. Analysts were expecting a result of around $217 million.
TASK ended Tuesday’s trading at $33.37, a rally of $4.65 on the day. Even with the gain, the stock remains in a trading range that has held it since mid-January, hovering above its 52-week low of $25.12.
The stock hit a 52-week high of $85.49 in September. The shares are now down about 61% since hitting that high.
GoodRx (GDRX) cratered nearly 39% after the company reported disappointing results for its latest quarter and offered soft guidance for the current fiscal year.
The operator of a prescription drug price tracking app saw revenue growth of 39% year-on-year. However, the main figure of $213 million is far from the consensus of analysts. Similarly, the company’s non-GAAP EPS figure of $0.09 missed projections by a penny.
Looking ahead, GDRX forecast revenue of around $200 million in the first quarter. That was well below the more than $227 million estimated by analysts.
GDRX posted a decline of $10.66, closing the session at $16.74. Shares also set a new 52-week intraday low of $15.91.
With the slide, GDRX fell below recent support to resume a decline that began in October. Shares have fallen about 58% in the past six months.
Notable new peak
Chevron (CVX) extended recent gains, pushed higher by soaring oil prices and a colossal share buyback plan. The 4% rally took the stock to a new 52-week high.
CVX said it was increasing its previous buyback plan, which will now buy back up to $10 billion a year. Previously, the high end of the company’s potential takeovers was $5 billion.
Meanwhile, oil prices soared on Tuesday as Russia continued to push for its invasion of Ukraine. Crude jumped nearly 9% to hit $104 a barrel, its highest level since 2014.
CVX ended Tuesday at $149.72, a gain of $5.72 on the session. The stock also hit a 52-week intraday high of $149.96.
With oil prices rising recently, CVX has been gaining steadily for the past few days. The stock has climbed in four of the past five sessions.
Longer term, stocks have risen since September. CVX is up about 53% in the past six months.
New notable low
Russia’s invasion of Ukraine led to a long list of sanctions against Vladimir Putin’s country, with most measures taking the form of financial restrictions. Meanwhile, the dispute suppressed bond yields, with the 10-year Treasury yield falling 12 basis points to 1.72% on Tuesday.
Due to this momentum, financial stocks have recently come under selling pressure. The sector was the worst among the 11 S&P market segments in Tuesday’s action, down 3.7%.
JPMorgan (JPM) has been among the victims of this decline. The stock fell 4% after learning it had halted trading in funds exposed to Russian assets. The slide also took the stock to a new 52-week low.
JPM fell $5.35 to close at $136.45. Shares rallied a little in the final hours of trading, but hit a 52-week intraday low of $133.58 earlier in the session.
The stock hit a 52-week high of $172.96 in October and saw choppy trading in January. The stock has seen bouts of selling pressure since, falling around 19% since Jan. 13.
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