Why Signet Jewelers, Garmin, and Zebra Technologies Jumped Today

Stocks suffered an intraday reversal, giving up early gains after the Federal Reserve's latest minutes deflated hopes for a stimulus reaction to troubling economic trends. But these three stocks overcame those headwinds. Find out more about what made these three stocks soar.

Feb 19, 2014 at 8:01PM

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.

Stocks suffered a midday reversal of fortune Wednesday, as early gains gave way to losses after comments from Fed officials and the latest minutes of the Fed's Open Market Committee quashed hopes for a slower withdrawal of quantitative easing. Yet even with major-market benchmarks falling 0.5% to 1% today, Signet Jewelers (NYSE:SIG), Garmin (NASDAQ:GRMN), and Zebra Technologies (NASDAQ:ZBRA) defied the market's downtrend and rose substantially.

Signet Jewelers jumped 18% after announcing that it would buy jewelry rival Zale (UNKNOWN:ZLC.DL) in a $690 million transaction. Signet, which is the company behind the Kay Jewelers brand, said that it would buy Zale for $21 per share, or about 40% above its closing price Tuesday. Both chains will continue to operate under their respective names. With the jewelry industry having enjoyed strong sales recently, a Signet-Zale combination should be in even better position to take advantage, especially with gold and silver prices at depressed levels.

Garmin gained almost 10% as the GPS specialist announced earnings for the fourth quarter. Even as many analysts have been concerned about the company's future potential in light of readily available GPS apps on popular smartphones, Garmin has made the most of specialty areas like fitness and aviation. Growth in non-automotive areas was almost enough to outweigh falling auto and mobile revenue, and earnings growth of 12% also came in stronger than investors had expected. Finally, Garmin raised its dividend by almost 7%, adding to the stock's already attractive 4% yield.

Zebra Technologies rose 14% on record revenue and net income for the quarter. The company's combination of RFID and real-time location services are intended to help customers keep track of their goods, and the rising trend toward the Internet of Things is definitely playing a substantial role in Zebra's future strategy. With positive guidance for the current quarter as well, Zebra appears to be making the right moves to take full advantage of technological innovation and applying it to the needs of its customers.

Learn more about the Internet of Things opportunity
Zebra isn't the only company taking advantage of the rise of connectivity. Find out more about one small-cap pure-play on the trend, as The Motley Fool's expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns in this potential $14.4 trillion industry. Click here to get the full story in this eye-opening report.

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. 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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