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A Big Day for Automotives: From Trucks to Tesla

Many of our stocks featured in our mid-week Rippers list are popping after reporting their Q2 earnings; they’re also relatively unknown. That said, let’s dive in to unravel the moves 🕺

🚛 As it turns out, there’s a lot of money in auctioning off heavy industrial equipment and trucks. For the majority of the year, analysts recommended that $RBA was ‘Sell’ because of its poor sales. But something novel made Ritchie Bros rich in Q2: online auctions. Amidst the pandemic, folks have had to turn elsewhere to make big purchases and sell their old PP&E. In the first half of 2020, $RBA clocked 73 million views to their web platforms and sold over $1 billion worth of equipment online since August 2019. Given its online and global orientation, $RBA is up an impressive 41% this month.

🚗 Sonic Automotive, a truck dealership chain in the U.S; Daseke, the largest operator of trucking companies; and XPEL, a company which makes auto parts, all also made our list today. $SAH is up nearly 11%, $DSKE is up 9%, and $XPEL is up nearly 38% after reporting earnings. Investors seem to have shortchanged many auto, trucking and dealer stocks early in the pandemic. However, these segments have proven their strength amidst adversity.

🏨 Today’s biggest mover, The Pennant Group, is trading up an impressive nearly 41% today after their quarterly earnings. $PNTG specializes in home health, senior living, and hospice care. They beat the analysts’ estimated GAAP EPS by $0.09 and revenue results. This is an impressive delivery given the circumstances. However, with a P/E ratio of over 200, it begs the question if stock growth is sustainable here. I guess it’s only a matter of time until we find out.

🧪 Annexon Biosciences is up nearly 20% today. This recently-IPOed stock has its eye on building drugs to combat autoimmune and neurodegenerative diseases like Huntington’s and ALS. Trialing a drug to fight neurodegenerative disease is extremely difficult (and expensive), but investors seem sold. Today, $ANNX crossed a $1 billion market value for the first time. Since they IPOed on July 24, they’re up 61%.

🔌🚗 Though not on our Rippers list today, we’d be remiss if we didn’t mention Tesla. Yesterday, $TSLA announced their stock would be split 5-for-1, driving the stock up 13% today. This decision comes on the heels of a strong earnings beat and four consecutive quarters of profitability (a key requirement of being added to the S&P 500). The stock split likely serves to helps the poor fund managers having to rebalance S&P funds and ETFs like $SPY. Being valued at $277 billion, Tesla’s addition to the S&P would be one of the biggest in the history of this index. One analyst described the prospective addition as an “all hands on deck” kind of deal. T

hat wraps our mid-week Rippers list 🔥 Check back in with us Friday!

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