Beverage stocks are hot again. Molson Coors Beverage (TAP) gained 7.75%, continuing an uptrend that started in October.
Investors grew increasingly fearful of the AI bubble since July. The negative sentiment started in the summer, after South Korea’s KOSPI crash. Led by Samsung (SSNLF) and SK Hynix (SKHY), stock markets started to doubt the momentum of AI data centers getting built.
Investors pivoted their holdings out of technology and into consumer staples. Short-sellers who held a 17.17% short interest on Molson shares faced a short squeeze. Other consumer names that faced high short float included Kimberly-Clark (KMB), Post Holdings (POST), Campbell’s (CPB), and Freshpet (FRPT).
In the aerospace sector, Howmet Aerospace (HWM) extended its V-shaped rebound. The stock bottomed at $183.52 and closed on Monday at $212.99 (+6.91%). Howmet posted non-GAAP of $1.46. Revenue grew by 29.2% Y/Y to $2.7 billion.
Howmet has strong operating margins and a healthy balance sheet. Its peers include Kratos Defense (KTOS), TransDigm (TDG), and HEICO (HEI).
IDEXX Laboratories (IDXX) gained 21.85% on Monday. It reported a 10% Y/Y increase in revenue. Q3 non-GAAP EPS was $3.96. The firm is forecasting revenue to grow by 10.1% to 10.8%.
In the credit services sector, Mastercard (MA), American Express (AXP), and Visa (V) trade with strong uptrends. Investors prefer to hold established credit card names instead of lenders like Affirm Holdings (AFRM) or Upstart Holdings (UPST).
