Why Rite Aid Corporation, Portugal Telecom, and YY Inc. Jumped Today

Stock markets remained subdued Friday, with mixed performance among major markets. But some stocks soared, with Rite Aid and Portugal Telecom climbing about 9% each, while YY Inc. gained almost 11%. Find out more about what helped these stocks soar.

Jan 3, 2014 at 8:02PM

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.

For the second day in a row, stocks didn't deliver the results that bullish investors had hoped to see. Despite modest gains for the Dow, the broader S&P 500, and the tech-heavy Nasdaq Composite, both posted declines on the day. Yet, even with the gloomy mood, many stocks celebrated with substantial gains, including Rite Aid (NYSE:RAD), Portugal Telecom (NYSE:PTGCY), and YY (NASDAQ:YY).

Rite Aid soared almost 9%. The drugstore chain reported same-store sales growth in December of 2.9%, continuing to accelerate its growth as it keeps trying to turn itself around amid substantial debt and competitive threats from larger drugstore rivals. Once again, though, pharmacy gains were much higher than the overall growth in sales. That suggests ongoing weakness in the front end of the stores, and many investors would like to see that improve before they get fully behind Rite Aid's stock.

Portugal Telecom picked up more than 9% on a good day for southern European telecom companies, with Telecom Italia (NYSE:TI) also posting solid gains of nearly 8%. Europe has slowly dragged itself out of recession, and investors have looked to the continent's markets as potential outperformers if the recovery continues. Portugal Telecom, Telecom Italia, and other peers across Europe largely suffered substantial losses during the eurozone's financial difficulties, and so it makes sense that they'd bounce back the strongest in times of improving conditions.

Chinese social-media company YY jumped 11% as investors get more bullish on the prospects for China. Throughout 2013, Chinese Internet stocks have performed well, with giant online-search company Baidu (NASDAQ:BIDU), and smaller players alike posting enviable total returns. As investors adjust their portfolios for the New Year, YY could see more volatility if the trend that helped send it up about 250% in 2013 starts to falter. For now, though, shareholders seem committed to the company and its future.

Can you really pick growth stocks before they soar?
Most people said it couldn't be done. But David Gardner has proved them wrong, time, and time, and time again, with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently, one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Baidu. The Motley Fool owns shares of Baidu. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information