Why Intuitive Surgical, Jabil Circuit, and Tesla Motors Soared Today

Stocks rebounded sharply after bank earnings came in reasonably strong this morning and optimism about technology stocks pervaded the market. But some stocks climbed even more sharply, with Intuitive Surgical gaining 7%, Jabil Circuit climbing 8%, and Tesla Motors rocketing 16% higher. Find out more about what made these stocks soar.

Jan 14, 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.

As bad as Monday was for stocks, today provided the typical turnaround. The market bounced higher on strength in the tech sector, and reasonably good bank earnings helped lift stocks to reverse much of their losses from yesterday's session. Even as the broader market posted gains of 1% or more, Intuitive Surgical (NASDAQ:ISRG), Jabil Circuit (NYSE:JBL), and Tesla Motors (NASDAQ:TSLA) saw even more substantial increases in their share prices.

Intuitive Surgical rose 7% after delivering better news in its preliminary results for the fourth quarter than investors had expected to see. Even though revenue declined about 5% to $576 million for the quarter, a rise in revenue from instruments and accessories points to solid growth in the number of procedures using the da Vinci surgical system. Even though system sales were down for the quarter, service revenue was seen increasing by 14%, helping to minimize the overall sales drop. Even though the company still faces an uphill battle in light of ongoing concerns about the safety of its robotic surgical system and worries about cost-consciousness deterring future system sales, Intuitive Surgical looks like it might finally be turning the corner.

Jabil Circuit climbed 8% after analysts at Goldman Sachs put the electronics manufacturer on its conviction-buy list. Jabil in particular has been hurt badly by the failure of BlackBerry (NASDAQ:BBRY) to find a lasting recovery in its business, resulting in Jabil's shares having taken a big hit. But Goldman believes that generally strong conditions in the electronic-device space should lead to more business for Jabil, and given the company's relatively attractive valuation, shareholders could benefit to a greater than average extent from any uptick in Jabil's business.

Tesla Motors jumped almost 16% after announcing solid performance in its fourth quarter, with the automaker having delivered 6,900 vehicles during the period. Even though the company said it would have to replace 29,000 of its charging devices, Tesla also said that it hopes to begin delivering limited quantities of its Model X SUV model later this year. The boost in its share price came as a welcome reversal after some challenging times since November.

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Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends and owns shares of Intuitive Surgical and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. 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.

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.

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