Why Strayer Education, Alexander & Baldwin, and Tile Shop Holdings Jumped Today

The stock market closed a quiet week on a down note, but these three stocks rode positive momentum higher. Find out more about what made them soar.

Feb 21, 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.

Friday proved a fitting end to a relatively quiet week for the stock market, with major-market benchmarks falling 0.1% to 0.2%. After the substantial volatility in stocks so far in 2014, this week was a respite for many investors, but the lazy market day didn't hold back shares of Strayer Education (NASDAQ:STRA), Alexander & Baldwin (NYSE:ALEX), or Tile Shop Holdings (NASDAQ:TTS) from making impressive climbs today.

Strayer soared 38% as the for-profit educator posted fourth-quarter results that were far stronger than even the most optimistic projections from analysts. Although total enrollment at Strayer's schools fell 14%, adjusted earnings were almost a third higher than investors expected, and even an overall 12.5% drop in revenue wasn't as bad as most had feared. Moreover, new enrollment declines appear to be slowing, with the latest figures showing just a 2% drop. With the company pointing to its restructuring during the quarter as a step in the right direction, investors clearly think that the stock has turned the corner after a long decline.

Alexander & Baldwin rose 8% after last night's earnings report included net income that nearly tripled from year-ago figures, on sales that were up about 150%. The diversified company with huge exposure to the Hawaiian Islands now has real-estate, agricultural, natural-resources, and infrastructure-construction businesses, and although low sugar prices hurt its agribusiness segment, solid performance in its other divisions helped Alexander & Baldwin's overall resorts improve substantially. The company's acquisition of Grace Pacific also helped it enhance its focus on Hawaii, which it hopes will pay off as economic conditions continue to improve.

Tile Shop Holdings gained 14% as the specialty-flooring company's earnings report showed revenue growth of 25%, with same-store sales gains of 10.1% helping to demonstrate the company's financial health as conditions in the housing market have improved recently. In addition, the company's 2014 guidance included comps growth of 5% to 7%, with further gains in revenue to a range between $285 million to $295 million, representing 24% to 28% growth over full-year 2013 sales. The results brought a sigh of relief to investors who had feared past allegations of fraud from short-selling firm Gotham City Research, but even after today's gains, Tile Shop Holdings remains well below its peak from last fall.

Own the best stock in the market before it's too late
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report, "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Tile Shop Holdings. The Motley Fool owns shares of Tile Shop Holdings. 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

Compare Brokers