The stock market’s run-up to all-time highs, driven by hopes of the Strait of Hormuz opening, is creating a K-shaped stock market. Chip firms like ON Semiconductor (ON) and Micron (MU) gained 9% and 19.3% respectively yesterday. Conversely, three stocks fell by nearly 6% or more.
Tractor Supply (TSCO) is on watch after shares fell by 5.76%. YTD, the stock lost over 40%. Investors are avoiding economically sensitive firms. The retailer posted same-store growth of 0.5% in the first quarter. Fixed costs driven by inflation and higher energy costs might outpace sales growth in the current quarter. Traffic trends in its stores continue to disappoint shareholders, as consumers cut back on rural/lifestyle products.
MongoDB (MDB) fell by 5.76% as well. The cloud database software firm trades at a premium (forward P/E of 55.8 times).
Autozone (AZO) lost 8.99% to close at $3,100.11. The week before it posted quarterly results, a memo leaked that the firm warned customers about the automobile oil shortage. In Q3, GAAP EPS of $38.07 was on revenue of $4.84 billion (+8.5% Y/Y).
Same-SKU inflation was muted in the quarter, likely in the 4% range. However, constraints on lubricant volumes will disrupt the business. Even though CEO Phillip Daniele said this would be immaterial, AZO stock sold off on Tuesday.
