Why Renren, AeroVironment, and Smith & Wesson Soared Today

Even as the market took a pause from recent volatility related to the Ukrainian crisis, these stocks posted impressive gains Wednesday. Find out more about what made these stocks soared.

Mar 5, 2014 at 8:01PM

Stocks paused Wednesday, with the S&P 500 closing near the unchanged level as investors waited to see what might happen next both geopolitically in Ukraine as well as domestically in the weather-torn U.S. economy. Even with stocks fighting to a draw today, Renren (NYSE:RENN), AeroVironment (NASDAQ:AVAV), and Smith & Wesson Holding (NASDAQ:SWHC) managed to give their shareholders good news today, with their shares rising sharply in response.

Renren soared almost 23%, adding to its nearly 10% jump Tuesday. Although the Chinese social-media company didn't make any major announcements today, sentiment in China's Internet industry has been extremely strong lately, with solid earnings results from search giant Baidu (NASDAQ:BIDU) last week helping to drive gains for a number of players in the space. With Baidu having bought Renren's Nuomi group-buying site in January, investors want to know how Renren will move forward from here, especially given that the growth at Nuomi was one of the sole bright spots for the company during the third quarter.

AeroVironment climbed 21% after the drone-maker announced its most recent quarterly results. Revenue jumped by almost half, with solid performance both for its unmanned aircraft division and its electric-charging business. As companies start to look at the commercial potential of drones, AeroVironment could see a huge expansion of the drone business beyond its current military focus. Meanwhile, as demand for electric vehicles begins to climb, the company's charging systems could become a much more integral part of its overall business, maximizing AeroVironment's overall growth opportunities.

Smith & Wesson gained 16% as the gunmaker's quarterly report included a 7% jump in sales, which helped boost adjusted net income by nearly 35% and well exceeded the more tepid expectations that investors had for the company. Moreover, Smith & Wesson gave positive guidance for its current quarter, raising its full-year fiscal 2014 projections for revenue and profits. Even though rival Sturm, Ruger (NYSE:RGR) didn't fare as well last week, disappointing investors and sending its shares down in response, Smith & Wesson shows that the gun industry isn't down for the count just yet.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends AeroVironment and Baidu and owns shares of Baidu. 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. 

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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.

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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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