Why Sears Holdings, DaVita HealthCare Partners, and Universal Insurance Holdings Soared Today

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

News of a diplomatic solution to the long-running standoff over the Iranian nuclear program helped stocks off to a good start, but concerns about the coming holiday season made traders less willing to bet on a short-term melt-up in the market. Despite the whipsawing in the overall market, though, Sears Holdings (NASDAQ: SHLD  ) , DaVita HealthCare Partners (NYSE: DVA  ) , and Universal Insurance Holdings (NYSE: UVE  ) all held onto sharp gains for the day. Let's take a closer look at all three to see why they fared so well and whether their gains can continue.

Sears Holdings gained 7% on an initial report from the New York Post that the retailer was talking to investment bankers about a potential sale of its interest in the Sears Canada retail chain. Sears issued a press release later in the day saying that the Post article includes several factual errors, including statements that Sears is conducting a "beauty contest" for Sears Canada and that it has talked to investment bankers about the Canadian department store. Regardless, shares moved higher during the afternoon hours. Investors seem to understand that the strategy that Sears is following involves considerations such as strategic sales of business units to a greater extent than actual retail prowess, and today's stock-price action reflects that fact.

DaVita picked up 9% as the Centers for Medicare and Medicaid didn't cut reimbursement rates on payments to dialysis clinics as dramatically as investors had expected. Although proposed cuts could have resulted in double-digit percentage declines in dialysis payments, the actual solution involves a much smaller 1% cut over the next two years. Obviously, any cut is bad news for DaVita, but less-bad news is better than worse news.

Universal Insurance rose 10% as the small insurance company announced a special dividend of $0.15 per share to go with its regular $0.08-per-share quarterly payout. The insurer has more than doubled in value this year, and the company got good news last week from the New York Stock Exchange, which will allow it to trade there rather than on the NYSE MKT site beginning Dec. 3. With more than ample profits to cover the payouts, Universal Insurance seems poised for further growth, especially if this year's quiet hurricane season repeats in future years to keep losses down.

Get faster-growing stocks
Putting up with slow gains in your portfolio isn't the answer for everyone. Motley Fool co-founder David Gardner, founder of the world's No. 1 growth-stock newsletter, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth-stock superstars, with you! It's a special 100% free report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains... and click here for instant access to a whole new game plan of stock picks to help power your portfolio.

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

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: 2742965, ~/Articles/ArticleHandler.aspx, 9/30/2016 11:36:22 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 Moments ago Sponsored by:
DOW 18,328.63 185.18 1.02%
S&P 500 2,169.84 18.71 0.87%
NASD 5,311.88 42.73 0.81%

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

9/30/2016 11:21 AM
DVA $65.40 Down -0.06 -0.09%
DaVita CAPS Rating: *****
SHLD $11.88 Up +0.88 +7.95%
Sears Holdings CAPS Rating: *
UVE $25.30 Up +0.27 +1.08%
Universal Insuranc… CAPS Rating: ****