Stock Market Today: Lumber Liquidators and Garmin Soar

Why Garmin, Lumber Liquidators, and Spirit Airlines stocks are on the move today.

Feb 19, 2014 at 9:00AM

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

Investors can expect a weak start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) lost 37 points, or 0.23%, in premarket trading. Overseas, markets were mixed in overnight trading as European indexes fell while Asian stocks logged gains. 

Next up on the economic calendar is the release of the Federal Reserve's monthly meeting minutes. That report will give investors more details on the central bank's deliberations last month as it decided to scale back its bond-buying stimulus program for the second time. The Fed will release the report at 2 p.m. EST.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including Garmin (NASDAQ:GRMN), Lumber Liquidators (NYSE:LL), and Spirit Airlines (NASDAQ:SAVE).

Garmin today posted surprisingly strong fourth-quarter earnings results. Sales came in at $760 million for the GPS equipment maker, down just 1% from the year-ago period. Analysts had expected Garmin's revenue to fall by a much sharper 7% to $713 million. The company saw continued weakness in its automotive division, which shrunk by 12%. Still, gains in its other four business lines of aviation, fitness, marine, and outdoor picked up most of that slack. Garmin's earnings also rose to $0.76 a share, well ahead of estimates, as gross profit margin improved by 3 percentage points. The stock is up 12.5% in premarket trading.

Lumber Liquidators' stock is back near triple-digits -- up .9% in premarket trading -- after the company announced fourth-quarter earnings results. A 16% comparable-store sales gain powered a 22% revenue boost as customer traffic remained strong despite what the company called "inconsistent demand" in some parts of the country due to extreme weather. Profit also spiked higher by 51% to reach $0.74 a share. The hardware flooring retailer affirmed its guidance for 2014, saying sales should increase by between 15% and 20% this year.

Finally, Spirit Airlines this morning posted a doubling of its quarterly profit to $41 million, or $0.56 a share. Revenue improved by 28% after the airline boosted capacity, added routes, and attracted more passengers with its low-fare strategy. Key to that strategy is keeping costs low, and Spirit succeeded there as operating expenses grew by 20% last year, while sales grew at a faster 26%. Spirit's stock is up 2.8% in premarket trading.

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Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Lumber Liquidators. The Motley Fool owns shares of Lumber Liquidators. 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.

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