Why These 3 Dow Stocks Surged Today

The Dow Jones Industrial Average (INDEX: ^DJI  ) was up a slight 0.27%, but a few names didn't have such a quiet day. These were the three biggest winners:


Price Change

Hewlett-Packard (NYSE: HPQ  ) 3.3%
Home Depot (NYSE: HD  ) 2%
Coca-Cola (NYSE: KO  ) 1.4%

Hewlett-Packard is up big today despite posting weak earnings yesterday. The printer manufacturer raised its full-year outlook and announced that it decided to cut its global workforce by around 8% to save $3 billion to $3.5 billion. The company says it will spend much of that money on R&D, an area that the company had probably underinvested in under its prior mismanagement.

Home Depot rose even though chief competitor Lowe's (NYSE: LOW  ) posted same-store-sales growth of just 2.6% and lowered its earnings guidance. Housing may be near a bottom, and investors had expected a faster rebound out of Lowe's. Home Depot has been stealing market share and showing faster same-store-sales growth than its rival for some time now.

There wasn't any major news propelling Coca-Cola's stock, but after rising 1.4%, shares of Coke now trade for 20 times earnings, the sixth highest in the Dow. I'm not concerned about its valuation, though. The soda giant generates impressive margins and has managed impressive emerging-market growth -- some 65% over the past half-decade.

HP, Home Depot, and Coke all beat the market today. If you're looking for some other intriguing stock ideas, The Motley Fool's chief investment officer picked his top stock for the year -- it's a company that is revolutionizing commerce in rapidly developing Latin American economies. For a limited time, you can get instant access to the name of this company and a special report for free by for free.

Ilan Moscovitz doesn't own shares of any companies mentioned. You can follow him on Twitter, where he goes by @TMFDada. The Motley Fool owns shares of Coca-Cola. Motley Fool newsletter services have recommended buying shares of Home Depot and Coca-Cola and writing covered calls on Lowe's. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1894882, ~/Articles/ArticleHandler.aspx, 10/25/2016 3:14:29 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:56 PM
^DJI $18223.03 Up +77.32 +0.43%
HD $127.78 Up +1.18 +0.93%
Home Depot CAPS Rating: ****
HPQ $13.97 Up +0.17 +1.23%
HP CAPS Rating: ***
KO $42.56 Up +0.43 +1.02%
Coca-Cola CAPS Rating: ****
LOW $70.98 Up +0.33 +0.47%
Lowe's CAPS Rating: ****