Hot Stocks: HCA sparks hospital sell-off; GPS hits low; CRSR plunges; SIVB rallies on earnings; BCBP sets high

Apr. 22, 2022 6:02 PM ETHCA Healthcare, Inc. (HCA)CYH, THC, UHS, CRSR, GPS, SIVB, BCBPBy: Brian Stewart, SA News Editor11 Comments

Financial stock market graph. Selective focus.

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Stocks recorded another day of substantial losses on Friday, dragged down by concerns that the Federal Reserve will accelerate its rate-hiking plans. The Dow dropped almost 1,000 points, as the major U.S. equity averages fell to their lowest levels since mid-March.

Health care stocks were among the worst performers on the day, with hospital names in the vanguard of the retreat. The slide came as HCA (NYSE:HCA) lowered its 2022 forecast, prompting massive losses for itself and peers like Community Health Systems (CYH), Tenet Healthcare (THC) and Universal Health Services (UHS).

Corsair Gaming (CRSR) represented another standout decliner. Shares dropped following the release of disappointing preliminary revenue.

Gap (GPS) plunged as well, dragged down by the departure of the head of its struggling Old Navy unit. Shares of the retailer lost almost a fifth of their value, falling to a new 52-week low.

A couple of bank stocks posted notable gains during the day. Earnings news sparked a rally in shares of SVB Financial (SIVB). Meanwhile, BCB Bancorp (BCBP) added to recent gains to set a fresh 52-week high.

Sector In Focus

A disappointing forecast from HCA Healthcare (HCA) spilled over to the overall hospital sector, sending many of HCA's peers sharply lower in sympathy.

The Nashville-based operator of health care facilities reported a disappointing profit figure for its latest quarter. At the same time, the company lowered its forecast for the year, saying it now expects 2022 revenue of $59.5B-$61.5B. HCA had previously predicted a figure between $60B and $62B.

In addition to the moderated top-line projection, HCA noted that it will see pressure from higher labor costs. Hurt by the news, HCA, which reached a 52-week high earlier this week, cratered 22% to reach its lowest close since last June.

The sell-off carried over to other hospital stocks. Community Health Systems (CYH) dropped almost 18%, while Tenet Healthcare (THC) staged a nearly 16% retreat. Universal Health Services (UHS) fell 14%.

Standout Gainer

Bolstered by strong Q1 results, SVB Financial (SIVB) garnered substantial buying interest, driving the stock higher by 8%.

The California-based commercial bank said its Q1 earnings rose from last year, exceeding analysts' consensus by almost 40%. Meanwhile, revenue rose 14% to reach $1.6B -- $150M above what experts were predicting.

SIVB attributed its Street-beating results to "pristine" credit quality and client activity that "remained robust."

SIVB closed Friday's trading at $541.04, a rally of $37.91 on the day. Even with the gain, the stock remained within its recent trading range. Shares are well off a 52-week high of $763.22 reached in late 2021.

Standout Loser

Corsair Gaming (CRSR) suffered a notable retreat following the release of preliminary Q1 revenue, as slumping consumer spending in Europe weighed on results. The stock plummeted 12% on the news.

The maker of gaming products, like headsets and keyboards, reported a preliminary top-line total of $380M for the quarter. This was down about 28% from last year. It also fell significantly short of analysts' consensus, which called for a figure closer to $450M.

"Inflation is higher than expected and the Ukraine war put a strain on consumer confidence," CEO Andy Paul said of the disappointing showing.

CRSR posted a decline of $2.17 to record a close of $16.15. Shares also reached an intraday 52-week low of $15.71.

With the retreat, the stock added to a slide that has marked the past several weeks, dropping below recent support. CRSR has fallen 27% over that time.

Notable New High

Building on a recent upswing, BCB Bancorp (BCBP) rallied another 8% on Friday, marking its eighth day of gains in the past 10 sessions. Shares also reached a new 52-week high.

Earlier this week, the New Jersey-based community reported its Q1 results, with earnings that rose sharply from last year. The company attributed the results to "lower operating expenses, robust growth in loans and deposits, and strong asset quality metrics."

BCBP finished the session at $20.26, a rise of $1.44 on the day. Shares also touched an intraday 52-week high of $20.39. The stock has climbed about 16% since its close on April 7.

Notable New Low

Further signs of dysfunction at Gap (GPS) sparked a massive sell-off, sending the clothing retailer lower by 18%. With the slide, the stock reached a 52-week low.

The decline came after GPS revealed that the president and CEO of its Old Navy brand would step down. The firm said it has launched a search for a new head of the struggling division.

Commenting on the change, Gap CEO Sonia Syngal said: "As we look to seize Old Navy’s potential, particularly amidst the macro-economic dynamics facing our industry, we believe now is the right time to bring in a new leader."

GPS dropped $2.57 to close the session at $11.72. During the day, the stock also established a new intraday 52-week low of $11.07.

Shares have been trending lower since last May, when they reached a 52-week high of $37.63. GPS has dropped 69% from that peak.

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