Why Tesla Motors, Bloomin' Brands, and Frontier Communications Soared Today

The stock market eased lower, but great news from these three companies sent their share prices into the stratosphere. Find out more about what made these stocks soar.

Feb 25, 2014 at 8:01PM

On Tuesday, the stock market took a pause from the strong performance it has had all month, with major market benchmarks losing between 0.1% and 0.2% on the day. But several companies reported positive news that sent their shares soaring, and Tesla Motors (NASDAQ:TSLA), Bloomin' Brands (NASDAQ:BLMN), and Frontier Communications (NASDAQ:FTR) were among the stocks with the biggest gains today.

Tesla soared 14% on a couple of different pieces of good news for the carmaker. Consumer Reports chose Tesla's Model S sedan as its top pick in its automotive rankings for the year. In addition, Morgan Stanley raised its price target on the carmaker to $320, citing opportunities not just in vehicle production but also battery storage as potentially providing game-changing technology in other areas. With its plans for a battery "gigafactory" that could provide storage for fellow Elon Musk-led SolarCity (NASDAQ:SCTY) as well as a host of other applications, Tesla could end up being much more than just a car company in the long run.

Restaurant operator Bloomin' Brands also posted a 14% advance, as it released fourth-quarter net income that more than tripled from year-ago levels. Revenue rose 5.2% on a 1.4% rise in comparable-store sales, and even adjusting for certain one-time items, pro forma earnings per share rose 35%. With the company aggressively expanding with 15 new Bonefish Grill, Carrabba's Italian Grill, and Outback Steakhouse locations, Bloomin' Brands is making the most of what it sees as a growth opportunity. Moreover, having obtained majority control of a joint venture in Brazil, the company figures to be an international player in the restaurant industry as well.

Frontier Communications gained almost 11% after reporting good earnings news last night. Revenue was roughly flat, defying expectations for a decline, and adjusted net income was stronger than expected. Although broadband-customer growth exceeded wireline-phone-customer declines, the interesting question for the high-yielding dividend stock is whether its buyout of AT&T's (NYSE:T) Connecticut wireline and fiber business will create more cash flow for Frontier. CEO Maggie Wilderotter said she expects the deal to close in the second half of 2014.

Be smart about dividends
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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of SolarCity 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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