Trending Stocks: Why Are ENB, ZS, and CGC On the Move?
September 08 2023 - 6:03AM
Finscreener.org
Shares of companies such as
Enbridge (NYSE: ENB), Zscaler (NASDAQ: ZS), and Canopy Growth
(NYSE:
CGC) were the major stock
market movers in early market trading on September 6. Let’s see
why.
Enbridge bets big on energy
Canada’s leading energy
infrastructure company, Enbridge, is down 9% in early-market
trading. The energy giant announced plans to buy three utilities
from Dominion Energy (NYSE:
D) in a deal valued at $9.4 billion, making
Enbridge North America’s largest natural gas provider.
Enbridge’s deal indicates it
expects natural gas to remain a key transition fuel as the world
shifts towards clean energy sources to fight climate change. The
company explained the assets it will acquire have long useful
lives, providing it with stable cash flows in the upcoming
decade.
The three utilities Enbridge is
looking to purchase currently serve customers in Ohio, North
Carolina, Utah, and Wyoming regions where utility bills are
forecast to grow at a higher pace compared to the national average.
These utilities serve seven million homes in the U.S.
After accounting for debt, the
total transaction is valued at $14 billion, making the acquisition
Enbridge’s largest since it purchased Spectra Energy for $28
billion in 2017. Currently valued at a market cap of $64 billion,
ENB stock offers investors a tasty dividend yield of 8%.
Zscaler tops revenue and earnings estimates
Cloud security company
Zscaler is down
over 2% in early market trading even though it reported
better-than-expected fiscal Q4 results for 2023 (ended in July).
Zscaler reported revenue of $455 million with adjusted earnings of
$0.64 per share.
Comparatively, analysts forecast
revenue at $430 million and earnings of $0.49 per share in Q4. In
the year-ago period, Zscaler reported revenue of $318 million and
earnings of $0.25 per share.
In the July quarter, Zscaler
increased:
- Deferred revenue by 41% to $1.44
billion
- Billings by 38% to $719 million and
- Net Income by over 150% to $101
million
Due to its widening profit
margins, Zcaler reported a free cash flow of $101 million,
accounting for 22% of sales.
“We concluded our fiscal year
with strong top line growth and record operating profits. In less
than two years, we doubled our annual recurring revenue, surpassing
the $2 billion milestone. With cyber security as a high priority,
IT executives are modernizing their legacy network security with
our zero-trust architecture," said Jay Chaudhry, Chairman and CEO
of Zscaler.
He added, “Our customers are
realizing tremendous value from the new services and advanced
capabilities delivered on our Zero Trust Exchange™ platform. We
will continue to invest to delight our customers with more product
innovations to capture the large opportunities ahead of
us.”
Canopy Growth stock
The final trending stock on the
list is Canopy Growth, which is up 9% today and 85% in the last
three trading sessions. Last week, a Bloomberg report disclosed an
unidentified "senior official" from the Department of Health and
Human Services (HHS) has formally petitioned for the
reclassification of marijuana, advocating for it to be considered
less hazardous than it currently is. This news drove shares of
Canopy Growth and other marijuana producers higher.
The senior figure within the HHS
reportedly sent the request to Anne Milgram, the head of the Drug
Enforcement Agency (DEA). According to Bloomberg, which claims to
have viewed the letter, an unnamed spokesperson for the DEA
confirmed its receipt.
The DEA uses a "scheduling"
system to categorize controlled substances. Currently, marijuana is
listed as a Schedule I drug, signifying that it has "no accepted
medical applications and a high potential for abuse," placing it in
the company of substances like heroin and LSD.
On the other hand, Schedule III
drugs are those deemed to have "a moderate to low potential for
physical and psychological dependence." Drugs like testosterone and
anabolic steroids fall under this category.
Canopy Growth (NYSE:CGC)
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