Stocks On Sale: Sofi, GM, And PPG Industries
(MENAFN- Baystreet)
In Thursday's trading session, markets sold off Sofi Technologies (SOFI). The stock lost 8.25% to close at $14.13, continuing its downtrend ever since it peaked at $17.19.
KBW analysts downgraded the stock from market Perform to Underperform. Analysts believe that SOFI's stock valuation is overstretched. In 2024, Sofi investors enjoyed a 60% return. Still, Sofi benefits from lower interest rates and an improving macroeconomic environment. It also has better scale and profitability to overcome the bear thesis.
General Motors (GM) dropped by 3.57% to find support at its upward trend line. Markets likely sent GM and Ford (F) stock lower after Tesla (TSLA) posted weak delivery data for the fourth quarter. GM fell in sympathy with Tesla even though GM pivoted its business away from the EV market to avoid bigger losses.
PPG Industries (PPG) closed at a fresh 52-week low of $115.42. Investors are not appreciating its cost-cutting efforts. Last October 2024, PPG agreed to sell its architectural coatings business for $550 million to American Industrial Partners. The cost reduction will affect around 1,800 jobs.
PPG will save $175 million annually from the sale. By cutting jobs mostly in Europe, it will save $60 million this year. PPG will record a $250 million pretax charge in its fourth-quarter earnings report.
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