Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Rite Aid, Delta Air Lines Rally Higher on Revenue Growth

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.

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) regained some of the ground it lost in yesterday's 135-point walloping Friday, ending slightly higher after a statement from outgoing Federal Reserve Chairman Ben Bernanke. Bernanke, whose term ends Jan. 31. He assured markets that the Fed remains committed to its quantitative easing program, which the central bank trimmed from $85 billion to $75 billion per month at its last policy meeting in December. Shrugging off data revealing slowing auto sales growth in December, the Dow stayed mostly optimistic, adding 28 points, or 0.2%, to end at 16,469. 

While the Dow finished on a positive note today, shares of blue chip retailer Wal-Mart Stores (NYSE: WMT  ) did not, losing 0.3% after news of a recall in China hit the wires. The drop in the stock price, though minuscule, might still be exaggerated; the company is recalling a specific brand of donkey meat it sold in just two Chinese locations after China's government revealed DNA tests of the product contained fox meat, as well. This should blow over pretty quickly due to the contained nature of the incident; the only obvious risk the recall poses is to Wal-Mart's PR department, which should probably start proactively combatting migraines. 

Like Wal-Mart, Rite Aid (NYSE: RAD  ) stores feature both a retail and a pharmacy side, though it's fair to say that Rite Aid's a bit more dependent on its pharmacy for success. The drugstore revealed same-store sales numbers for December, a metric that sent Rite Aid stock surging 8.5%, as shares continue a remarkable rally that's nearly quadrupled the investment of a shareholder buying in just a year ago. Pharmacy results continue to send the stock skyward, as revenue growth from prescriptions continues trending boldly higher.

Another stock that's done quite well for anyone who bought in a year ago, Delta Air Lines (NYSE: DAL  ) , also soared on Friday. Shares of the Atlanta-based airline, which have more than doubled in the last year, rallied 5.5% today. Delta Air Lines stock was also boosted by newly released December sales figures, which came in far stronger than expected. Not only did per-seat revenue log 10% year-over-year gains, but fuel costs were $0.03/gallon lower than the company expected. You don't have to be a financial savant to see that higher revenue and lower costs mean higher profits -- profits that Delta shareholders are entitled to a piece of.

The death of Wal-Mart: The real cash kings changing the face of retail
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Read/Post Comments (0) | Recommend This Article (2)

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.

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: 2783073, ~/Articles/ArticleHandler.aspx, 8/30/2015 12:01:40 PM

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...

John Divine

Fool since 2012, unique fingerprints since birth. Age 7: Put lifetime savings ($18.37!) in the bank, became disillusioned with low interest, and a fascination with the stock market was born.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

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

8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
DAL $43.94 Up +0.08 +0.18%
Delta Air Lines, I… CAPS Rating: ***
RAD $8.24 Down +0.00 +0.00%
Rite Aid Corp CAPS Rating: ***
WMT $64.94 Down -1.14 -1.73%
Wal-Mart Stores CAPS Rating: ***