Why Michael Kors, Yum! Brands, and Headwaters Soared Today

Stocks regained a modest portion of its losses from yesterday. But several stocks saw very strong gains, with Michael Kors rising 17%, Yum! Brands picking up 9%, and Headwaters jumping 20%. Find out more about what made these stocks soar.

Feb 4, 2014 at 7:01PM

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 stock market gave bullish investors some relief today, as many market analysts suggested that value-hungry investors decided to take advantage of the 325-point drop in the Dow yesterday to pick up stocks at a bargain price. Yet even though the rise of 0.5% to 0.75% for the Dow and S&P 500 didn't make up all of the market's lost ground, certain stocks did much better, with Michael Kors (NYSE:KORS), Yum! Brands (NYSE:YUM), and Headwaters (NYSE:HW) among the best performers of the day.

Michael Kors (KORS) spiked upward by 17% after the company announced strong results for the holiday quarter. The luxury retailer enjoyed comparable-store sales gains of 28%, beating its own guidance and leading to a 59% jump in total revenue. Margins were also strong, helping support a 77% rise in net income. As solid as 24% same-store sales growth in North America was, European comps of 73% wowed investors, and greater revenue from licensing shows that the luxury retailer appears to be running on all cylinders.

Yum! Brands (YUM) gained 9% after reporting earnings last night, with the fast-food giant seeing its net profit rising 4% in a big surprise to most investors. The key to the positive figures came from China, where total sales were up 3%. Things weren't perfect for Yum!, as the China division's same-store sales dropped by 4%. Yet in comparison to much worse results that the company has seen throughout the past several quarters, the quarter's figures led many investors to believe that a serious turnaround is just beginning for Yum! in China.

Headwaters soared by 20% as the building-materials specialist defied expectations for a quarterly loss in its most recent report, instead posting a modest profit and seeing quarterly revenue rise almost 11% from year-ago levels. In particular, Headwaters' building-product business saw sharp gains of 21% in sales, and that led the company to boost its projections for pre-tax earnings before interest and non-cash adjustments by about $5 million for fiscal 2014. As long as a strong U.S. economy keeps the industry moving in the right direction, Headwaters (HW) appears ready to keep taking advantage.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Michael Kors Holdings. 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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