They Call It Puppy Love

They Call It Puppy Love

Happy Friday folks!

And what a happy Friday it is because, after several weeks of scrounging to find some winners, we’ve finally got a shortlist that is bursting at the seams with green rather than red. 

So, just why was this week a better one? Let’s find out.

Here were the biggest movers in the MyWallSt shortlist this week:

Moving Up ⬆️

Trupanion (TRUP) +37.0%

LoveSac (LOVE) +33.0%

Bumble (BMBL) +15.5%

StoneCo (STNE) +15.2%

nCino (NCNO) +14.6%

Moving Down ⬇️

Stitch Fix (SFIX) -13.5%

Casey's (CASY) -7.1%

Peloton Interactive (PTON) -6.5%

Cloudflare (NET) -5.9%

Coupa Software (COUP) -4.7%

What investors need to know 

Moving up

Trupanion (TRUP) +37.0%

When it comes to loving your furry companions, Trupanion truly gets it. The pet insurance specialist wowed investors with its announcement on Tuesday that it will be entering a partnership with Chewy — a pet e-commerce company. Chewy is set to begin offering wellness and insurance plans for the pets within its ecosystem and will make use of Trupanion’s suite of proprietary software to do so. With over 20 million customers, Chewy gives Trupanion a lot of growth opportunities. It’s a good time for $TRUP investors as the number of dogs and cats in the U.S. alone soars into the hundreds of millions, representing a lot of higher costs due to increased veterinary visits. In that growth, Trupanion can thrive. 

Lovesac (LOVE) +33.0%

The ‘Lovesac’ is a little old place where we can get together — and enjoy the spoils of a truly exemplary third quarter. This furniture retailer, which recently joined the MyWallSt family, saw sales come in at $116.7 million, up a massive 56.1% from the $74.7 million it earned a year ago. What’s more, the company posted third-quarter earnings of $0.17 per share versus an expected loss of $0.40 per share. Talk about a big miss — from the analysts, that is. It has managed to weather the pandemic very well, remaining in growth mode and improving quarter on quarter. With the company moving beyond its beanbag offerings to sell other furniture products and continuing to open new stores, it’s an exciting time for $LOVE. 

Bumble (BMBL) +15.5%

It’s been a rough ride for this dating app ever since it joined the public markets back in February. Down more than 50% in that time and suffering from disappointing Q3 earnings last week, investors would be forgiven for swiping left on this stock at first glance. However, there was no ‘bumbling’ about this week as the Tinder-challenger is making — dare I say it — a comeback? Several Wall Street analysts believe that the company’s stock price has been unduly punished by skittish investors, especially when considering that revenue grew 24% YoY last quarter. Many have issued upgraded ratings, which has brought many investors back to the table who believe that Bumble will easily outpace its 2021 growth next year. 

Moving down

Stitch Fix (SFIX) -13.5%

It’s a double whammy for Stitch Fix after the clothing data specialist had yet another week at the bottom of our shortlist. Like so many others, the fall this week comes in light of its earnings. Irritatingly, it wasn’t a bad quarter for Stitch Fix, which saw revenue come in at $581 million vs. $571 million expected, while its loss of $0.02 per share was far lower than the $0.14 expected. Unfortunately, the damage was done by the company cutting its fiscal year revenue growth outlook to “high-single-digits”, down from 15% previously. This is to be expected though as the company deals with increasing supply chain issues and transitioning pains as it brings on new customers. 

Casey's (CASY) -7.1%

Despite rising vaccine rates and lowering restrictions, the U.S.-based convenience store giant disappointed investors on Wednesday with fiscal Q2 earnings that failed to wow the crowd. While same-store sales increased 6%, total revenue grew just 12.3% to $463 million and its quarterly earnings of $2.59 per share came in well below the $3.19 from Q1. CEO Darren Rebelez noted on the call that the company’s earnings before interest, taxes, and amortization were down primarily due to increased operating expenses such as higher wages and credit card fees. It’s certainly not time for investors to panic though as Casey’s will continue to recover from the pandemic going into 2022.

JamieJamie

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