Nasdaq Composite Rises 1.3% as Tech Stocks Rebound
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
A broad-based rebound in the Tech space continued for the second consecutive session, helping Nasdaq Composite once again outperform the other indices on Thursday with a 1.3% gain. The Tech sector also paced the 0.8% rally in the S&P 500, with the cyclical Consumer Discretionary and Basic Materials also performing strongly. Consumer Staples and Energy were the two worst-performing sectors in the S&P 500 even though the geopolitical climate and the standoff in the Middle East remain very fluid. Treasury yields came in by 3-4 basis points across the maturities, offering some relief especially on the longer end of the curve.In the opening hour of the evening session, S&P E-minis and NASDAQ 100 contracts are trading flat. In commodities, WTI crude oil is back below $72 per barrel while precious metals are a little changed.Delta Airlines, the next S&P 500 component to report results after Pepsi'sdisappointing numbers this morning, is on deck for Friday morning. The stock has rallied by about 30% since reporting its Q1 results in April, though shares have pulled back notably in July as Middle East tension reignited on energy supply fears while driving cost concerns for travel stocks.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -WD-40 Companyup 14.8%ALSO HIGHER -EquipmentShare.comup 7.8% after raising FY26 revenue viewSolaris Energy Infrastructureup 4.3% after admission into S&P smallcap 600 indexSigma Lithiumup 4.1% after Q2 delivery volume dataLOWER -Fermidown 16.0% after convertible debt offeringBrookdale Senior Livingdown 7.1% after June occupancy data
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Analyst Views on WDFC
About WDFC
WD-40 Company is a global marketing company. The Company develops and sells products that solve problems in workshops, factories and homes around the world. It owns a range of brands that include maintenance products and homecare and cleaning products: WD-40 Multi-Use Product, WD-40 Specialist, 3-IN-ONE, GT85, 2000 Flushes, no vac, 1001, Spot Shot, Lava, Solvol, X-14, and Carpet Fresh. The WD-40 Multi-Use Product is a maintenance product, which acts as a lubricant, rust preventative, penetrant and moisture displacer. The Company markets and sells its products primarily through hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, farm supply, and others. Its maintenance products are sold worldwide in markets throughout North, Central and South America, Asia, Australia, Europe, India, the Middle East and Africa. Its homecare and cleaning products are sold primarily in North America, the United Kingdom and Australia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
WD-40 Scheduled to Announce Q3 Earnings on July 9
- Earnings Announcement Date: WD-40 is set to release its Q3 earnings on July 9 after market close, with a consensus EPS estimate of $1.56, reflecting a modest year-over-year growth of 1.3%, indicating stability in profitability.
- Revenue Growth Expectations: The revenue estimate stands at $172.8 million, representing a 10.1% increase year-over-year, which highlights WD-40's ability to sustain sales growth amid rising market demand, thereby boosting investor confidence in the company's future performance.
- Historical Performance Review: Over the past two years, WD-40 has exceeded EPS and revenue estimates 75% of the time, and this consistent outperformance not only enhances market trust in its financial health but also sets a solid foundation for the upcoming earnings report.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates but one downward revision, while revenue estimates saw one upward revision, indicating analysts' cautious optimism regarding WD-40's future performance, which may influence investor expectations.
See More
WD-40 Co Reports Significant Earnings Growth in Q3
- Earnings Growth: WD-40 Co reported third-quarter earnings of $30.216 million, translating to $2.24 per share, which marks a significant increase from last year's $20.977 million and $1.54 per share, reflecting the company's strong market performance.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $31.5 million or $2.33 per share, indicating sustained healthy growth in its core business, which enhances investor confidence.
- Revenue Increase: The company's revenue rose 24.3% year-over-year to $195.119 million, up from $156.915 million last year, demonstrating a substantial increase in market demand for WD-40 products.
- Full-Year Revenue Guidance: WD-40 Co provided full-year revenue guidance of $652 million to $667 million, showcasing management's optimistic outlook for future performance, which may attract more investor interest in its long-term growth potential.
See More
WD-40 Q3 Earnings Exceed Expectations
- Earnings Beat: WD-40 reported a Q3 non-GAAP EPS of $2.33, surpassing estimates by $0.77, indicating strong market performance and boosting investor confidence.
- Significant Revenue Growth: The company achieved revenue of $195.1 million in Q3, a 24.3% year-over-year increase, exceeding market expectations by $22.3 million, demonstrating sustained demand and market share growth.
- Optimistic Future Outlook: For fiscal year 2026, net sales are projected to be between $652 million and $667 million, reflecting a growth of 6% to 9% compared to fiscal year 2025, showcasing the company's confidence and proactive growth strategies.
- Cost Control Measures: Non-GAAP operating income is expected to range from $107 million to $113 million, representing a 5% to 11% increase compared to fiscal year 2025, highlighting WD-40's effectiveness in implementing pricing actions and cost-saving initiatives.
See More
Major Earnings Reports Expected Thursday: SLP and WDFC
- Earnings Report Preview: On Thursday, Simulations Plus (SLP) and WD-40 Company (WDFC) are set to release their earnings reports, with market participants closely watching for performance metrics that could impact stock prices in the short term.
- Market Sentiment Fluctuation: Wall Street has slid amid rising doubts over the U.S.-Iran ceasefire, which has affected investor sentiment and may lead to earnings reactions that fall short of expectations.
- Industry Dynamics Analysis: During this earnings season, Micron and AMD are highlighted as standout performers, indicating a robust recovery in the semiconductor sector that could attract increased investor interest.
- Geopolitical Risk: The repricing of oil and yields reflects the market's sensitivity to geopolitical risks, which may influence the financial performance and investment decisions of related companies.
See More
Upcoming Earnings Season and Economic Data Insights
- Earnings Preview: The earnings season officially kicks off from July 13 to 17, with major companies like Levi Strauss, PepsiCo, and Delta Air Lines reporting, prompting market focus on consumer spending and inflationary pressures impacting performance.
- Oil Prices and Consumer Spending: Despite a 27% drop in U.S. WTI crude prices over the past month, consumer gas prices have only decreased by 10.5%, which may influence purchasing decisions, particularly for brands like Levi's.
- Service Sector Data Release: This week will see the release of the S&P Global Services PMI and ISM Services PMI, aimed at providing timely insights into business activity in the U.S. services sector, aiding in the assessment of economic health.
- Semiconductor Industry Volatility: The semiconductor sector faced severe selling last week, with the iShares Semiconductor ETF and VanEck Semiconductor ETF nearing their 50-day moving averages, and the market will watch for whether buyers will support a rebound in this sector.
See More
Analysis of WD-40 Stock Performance Drivers
- Elite Gross Margin: WD-40 has achieved an average gross margin of 54.9% over the past two years, indicating that only $45.09 of every $100 in revenue is spent on raw materials and production, showcasing its strong pricing power and potential for brand investment, thereby enhancing its competitive position in the market.
- High ROIC: With a five-year average return on invested capital (ROIC) of 26.1%, WD-40 ranks among the best in the consumer staples sector, demonstrating its management's ability to effectively invest in high-profit projects and deliver substantial returns for shareholders, further solidifying its market standing.
- Revenue Growth Potential: Although WD-40's revenue over the past 12 months stands at $636.5 million, which is relatively small, it also implies significant growth opportunities in untapped retail channels, allowing for rapid market share expansion and improved overall performance.
- Strong Market Performance: WD-40's stock has outperformed the S&P 500 by 14.3% over the past six months, with a 20.5% increase in share price to $245.90, reflecting investor confidence in its future growth, although caution is warranted regarding its limited distribution channels.
See More
WD-40 Scheduled to Announce Q3 Earnings on July 9
- Earnings Announcement Date: WD-40 is set to release its Q3 earnings on July 9 after market close, with a consensus EPS estimate of $1.56, reflecting a modest year-over-year growth of 1.3%, indicating stability in profitability.
- Revenue Growth Expectations: The revenue estimate stands at $172.8 million, representing a 10.1% increase year-over-year, which highlights WD-40's ability to sustain sales growth amid rising market demand, thereby boosting investor confidence in the company's future performance.
- Historical Performance Review: Over the past two years, WD-40 has exceeded EPS and revenue estimates 75% of the time, and this consistent outperformance not only enhances market trust in its financial health but also sets a solid foundation for the upcoming earnings report.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates but one downward revision, while revenue estimates saw one upward revision, indicating analysts' cautious optimism regarding WD-40's future performance, which may influence investor expectations.
See More
WD-40 Co Reports Significant Earnings Growth in Q3
- Earnings Growth: WD-40 Co reported third-quarter earnings of $30.216 million, translating to $2.24 per share, which marks a significant increase from last year's $20.977 million and $1.54 per share, reflecting the company's strong market performance.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $31.5 million or $2.33 per share, indicating sustained healthy growth in its core business, which enhances investor confidence.
- Revenue Increase: The company's revenue rose 24.3% year-over-year to $195.119 million, up from $156.915 million last year, demonstrating a substantial increase in market demand for WD-40 products.
- Full-Year Revenue Guidance: WD-40 Co provided full-year revenue guidance of $652 million to $667 million, showcasing management's optimistic outlook for future performance, which may attract more investor interest in its long-term growth potential.
See More
WD-40 Q3 Earnings Exceed Expectations
- Earnings Beat: WD-40 reported a Q3 non-GAAP EPS of $2.33, surpassing estimates by $0.77, indicating strong market performance and boosting investor confidence.
- Significant Revenue Growth: The company achieved revenue of $195.1 million in Q3, a 24.3% year-over-year increase, exceeding market expectations by $22.3 million, demonstrating sustained demand and market share growth.
- Optimistic Future Outlook: For fiscal year 2026, net sales are projected to be between $652 million and $667 million, reflecting a growth of 6% to 9% compared to fiscal year 2025, showcasing the company's confidence and proactive growth strategies.
- Cost Control Measures: Non-GAAP operating income is expected to range from $107 million to $113 million, representing a 5% to 11% increase compared to fiscal year 2025, highlighting WD-40's effectiveness in implementing pricing actions and cost-saving initiatives.
See More
Major Earnings Reports Expected Thursday: SLP and WDFC
- Earnings Report Preview: On Thursday, Simulations Plus (SLP) and WD-40 Company (WDFC) are set to release their earnings reports, with market participants closely watching for performance metrics that could impact stock prices in the short term.
- Market Sentiment Fluctuation: Wall Street has slid amid rising doubts over the U.S.-Iran ceasefire, which has affected investor sentiment and may lead to earnings reactions that fall short of expectations.
- Industry Dynamics Analysis: During this earnings season, Micron and AMD are highlighted as standout performers, indicating a robust recovery in the semiconductor sector that could attract increased investor interest.
- Geopolitical Risk: The repricing of oil and yields reflects the market's sensitivity to geopolitical risks, which may influence the financial performance and investment decisions of related companies.
See More
Upcoming Earnings Season and Economic Data Insights
- Earnings Preview: The earnings season officially kicks off from July 13 to 17, with major companies like Levi Strauss, PepsiCo, and Delta Air Lines reporting, prompting market focus on consumer spending and inflationary pressures impacting performance.
- Oil Prices and Consumer Spending: Despite a 27% drop in U.S. WTI crude prices over the past month, consumer gas prices have only decreased by 10.5%, which may influence purchasing decisions, particularly for brands like Levi's.
- Service Sector Data Release: This week will see the release of the S&P Global Services PMI and ISM Services PMI, aimed at providing timely insights into business activity in the U.S. services sector, aiding in the assessment of economic health.
- Semiconductor Industry Volatility: The semiconductor sector faced severe selling last week, with the iShares Semiconductor ETF and VanEck Semiconductor ETF nearing their 50-day moving averages, and the market will watch for whether buyers will support a rebound in this sector.
See More
Analysis of WD-40 Stock Performance Drivers
- Elite Gross Margin: WD-40 has achieved an average gross margin of 54.9% over the past two years, indicating that only $45.09 of every $100 in revenue is spent on raw materials and production, showcasing its strong pricing power and potential for brand investment, thereby enhancing its competitive position in the market.
- High ROIC: With a five-year average return on invested capital (ROIC) of 26.1%, WD-40 ranks among the best in the consumer staples sector, demonstrating its management's ability to effectively invest in high-profit projects and deliver substantial returns for shareholders, further solidifying its market standing.
- Revenue Growth Potential: Although WD-40's revenue over the past 12 months stands at $636.5 million, which is relatively small, it also implies significant growth opportunities in untapped retail channels, allowing for rapid market share expansion and improved overall performance.
- Strong Market Performance: WD-40's stock has outperformed the S&P 500 by 14.3% over the past six months, with a 20.5% increase in share price to $245.90, reflecting investor confidence in its future growth, although caution is warranted regarding its limited distribution channels.
See More
