Are These Stocks Ready To Bounce? SNBR, PRFT, TREE, MXL, EYE

Nothing is permanent in the stock market. A stock that may have performed strongly could have a strong correction, while those going through a bad phase may bounce back. Investors are often on the lookout for stocks that may be on the verge of bouncing back after a period of stagnation. Are the stocks listed here on the verge of making such a move?

Sleep Number Corporation (NASDAQ:SNBR) – On Thursday the company announced its financial results for the quarter that ended on July 1, 2023. The Chairman, President, and Chief Executive Officer of Sleep Number Corporation Shelly Ibach noted that although the company was managing a difficult macro environment, it was in a position to grow. The net sales for the quarter declined 16% year on year to hit $459 million.

However, demand had shown improvement throughout the second quarter despite being below the company’s expectations. The gross margin came in at 57.6%, which was consistent with the company’s expectations. Operating expenses for the quarter was $253 million, which was lower than $275 million under the same overhead in the prior year period. The company generated earnings per diluted share of $0.03, as compared to $1.54 in the corresponding period in 2022. In the year so far, net sales declined 8% year on year to $895 million and the gross profit went down to $575 million, as opposed to $627 million in the prior year period.

SMBR stock is all set to gap down this morning as the pre-market is showing a slump of 25% at $28.84.

Perficient Inc (NASDAQ:PRFT) – The company is one of the leading worldwide consultancies and offers guidance to some of the biggest companies and brands. Yesterday, Perficient Inc announced its financial results for the fiscal quarter which ended on June 30, 2023. The company generated revenues of $231.1 million, which worked out to a year-on-year rise of 4% from the revenues of $222.7 million in the prior year period. While the net income figure of $26.4 million may have been impressive it reflected a decline from the $27.8 million in the prior year period.

The GAAP earnings per fully diluted share was $0.73, which was 5% lower than $0.77 in the prior year period. The adjusted EBITDA for the quarter was $48.2 million, which was a 6% drop from the prior year period EBITDA of $51.2 million. Jeffrey Davis, the company’s Chief Executive Officer stated that although many companies are treading lightly at a time of macroeconomic confusion, Perficient continued to appeal to the biggest companies and brands in the world.

PRFT was one of the biggest losers in the previous session as the stock fell 26% to close at $66.99. The stock has lost 36% in the past year.

LendingTree Inc (NASDAQ:TREE) – The company is best known for operating the biggest online financial services marketplace in the United States LendingTree.com. Yesterday, the company announced its financial results for the quarter that had ended on June 30, 2023. The home revenues segment posted by LendingTree Inc was $41.6 million, which reflected a significant decline of 44% from the prior year period.

Chief Financial Officer Trent Ziegler noted that although the revenues went down due to the current economic situation, the company was able to generate attractive margins by running the business efficiently. The consumer segment revenues came in at $82.5 million, which recorded a decline of 22% from the prior year period. The insurance segment revenues went down 58% year on year to $58.4 million. However, the segment clocked a profit of $24.8 million, which worked out to year on year rise of 10%. LendingTree also announced yesterday that up until June 30, 2023, 26.9 million customers had signed up to its platform.

The stock was down over 25% on Thursday on hefty volume.

MaxLinear (NASDAQ:MXL) – This past Wednesday the MaxLinear stock suffered from a selloff after it announced it was going to announce its second fiscal quarter financial results later on that day. The company, which is involved in analog, digital, frequency and integrated circuits also noted that it was going to hold a conference call on the same day.

Wall Street estimates suggested that the company would deliver earnings per share of 33 cents to go along with revenues of $190.3 million. Additionally, it ought to be noted that MaxLinear had also been working on the acquisition of Silicon Motion Technology. The acquisition would be made in cash and MaxLinear stock. The deal would value Silicon Motion stock at $114.30.

MXL stock continued to trend lower on Thursday and fell 24%, extending its weekly slump to 35%.

National Vision Holdings Inc (NASDAQ:EYE) – The company is the second biggest optical retailer and is known for offering affordable eyecare and eyewear. This week National Vision Holdings Inc announced that it had gone into a partnership with retail behemoth Walmart Inc which would last until 2024. As per the provisions of the partnership, the company would operate Vision Centers in some of the selected Walmart stores, and provide distribution for contact lenses and other related services.

It would also provide optometric services to some of the selected Walmart outlets in the state of California. The Chief Executive Officer of the company Reade Fahs noted that he valued the partnership with Walmart which had helped National Vision Holdings grow in the past decades.

The stock was down over 22% to $22 on Thursday.