Stocks making the biggest moves premarket: CarMax, Darden Restaurants, Accenture, GMS

Several companies saw significant pre-market trading activity following earnings reports and corporate developments: CarMax shares rose 10% after exceeding Q1 earnings and revenue expectations; GMS jumped 26% amid a reported bidding war between QXO and Home Depot; Darden Restaurants gained nearly 3% following a Q4 earnings beat and a new $1 billion share repurchase program; and Circle shares continued their climb, up 14%, after Senate approval of stablecoin legislation. Conversely, Accenture shares fell 3.7% due to a 6% drop in new U.S. bookings despite overall earnings and revenue exceeding expectations, and Jack in the Box declined 1% after a Stifel downgrade citing immigration policy headwinds.

Analysis

Pre-market trading activity highlighted several significant corporate developments. CarMax demonstrated robust performance, with shares surging 10% after reporting first-quarter earnings of $1.38 per share on $7.55 billion in revenue, surpassing LSEG consensus estimates of $1.16 EPS and $7.52 billion revenue. M&A activity fueled a substantial 26% jump in GMS shares, as a bidding war reportedly emerged between QXO, offering $95.20 per share, and Home Depot, which made a private offer; QXO shares rose 2.4% while Home Depot saw a marginal dip. Darden Restaurants also reported positive results, with shares up nearly 3% following a fourth-quarter earnings beat (adjusted EPS $2.98 vs. $2.97 expected) on revenue of $3.27 billion (vs. $3.26 billion expected), further supported by a new $1 billion share repurchase authorization. Conversely, Accenture shares declined 3.7% despite exceeding overall Q3 earnings ($3.49 vs. $3.32 LSEG consensus) and revenue ($17.73 billion vs. $17.30 billion LSEG consensus), primarily due to a concerning 6% year-over-year drop in new bookings in U.S. currency to $17.73 billion. Jack in the Box shares fell 1% following a Stifel downgrade to 'hold' from 'buy,' citing potential headwinds from Trump administration immigration policies. Regulatory developments positively impacted Circle, whose shares climbed another 14% pre-market, extending gains from a 33% rise on Wednesday, after the Senate approved its proposed stablecoin legislation. Regencell Bioscience continued its volatile trajectory post a 38-for-1 stock split, dropping over 17% after significant gains earlier in the week, while Kroger saw a minor dip of less than 1% ahead of its first-quarter results.

Key Decisions for Investors

• Investors should closely monitor the M&A developments surrounding GMS, as the reported bidding war between QXO and Home Depot has already driven its shares up 26% and could present further event-driven opportunities.
• The strong earnings from CarMax (EPS $1.38 vs $1.16 expected) and Darden Restaurants (EPS $2.98 vs $2.97 expected), with Darden also announcing a $1 billion buyback, warrant consideration for their potential sustained operational strength and positive investor sentiment.
• Despite Accenture's overall earnings beat, the 6% decline in its new U.S. bookings, which led to a 3.7% share price fall, signals a crucial metric to scrutinize for potential future performance headwinds in the IT consulting sector.
• The downgrade of Jack in the Box due to anticipated immigration policy headwinds and Circle's 14% share increase following favorable stablecoin legislation highlight the importance of assessing specific regulatory and macroeconomic factor impacts on portfolio holdings.
• The significant volatility in Regencell Bioscience shares, including a 17% drop after a recent stock split and large prior gains, underscores the heightened risk in specific situations and suggests caution for investors averse to sharp price swings.