Why Alcoa, Petroleo Brasileiro, and lululemon athletica Jumped Today

On a relatively quiet day for the stock market, broad market indexes were little changed as investors waited for further direction on the geopolitical and global economic fronts. But these three stocks still managed to post solid gains Thursday. Find out more about what made these stocks soar.

Mar 27, 2014 at 8:00PM
Longview

Thursday's stock market action was relatively muted, with aimless trading resulting in only minimal losses for the Dow and S&P 500. Investors continue to fret about situations like the Ukrainian conflict and economic risk in China and other emerging markets, even as news from the U.S. economy continues to be encouraging. Despite losses for the broader market, Alcoa (NYSE:AA), Petroleo Brasileiro (NYSE:PBR), and lululemon athletica (NASDAQ:LULU) celebrated positive news, and posted solid gains on the day for their shareholders.

Aa

Alcoa's Ultra ONE wheel. Source: Alcoa.

Alcoa jumped 6%, with the aluminum giant climbing after releasing its new Ultra ONE truck wheel. Alcoa says that the Ultra ONE cuts almost half the weight from similarly sized steel wheels, which can cut as much as 1,400 pounds from commercial truck weights and thereby save fuel and allow larger hauls from the same equipment. The move represents just one direction of Alcoa's attempt to make itself more relevant in a wide array of different applications, ranging from ground transportation to aircraft and other weight-critical industries. Finding niche uses for aluminum is important, because from a longer-term perspective, aluminum prices remain at their lowest levels since 2009. The industry likely needs a broader shakeout before the fundamentals can improve enough to justify big moves forward for Alcoa and its peers.

Petrobras gained 8% on a strong day for the Brazilian stock market generally. Brazil's energy giant has been under pressure for years as subsidized gasoline prices within the South American emerging-market giant have weighed on profits and led many investors to question whether they'll ever reap the full benefit of Petrobras' big finds off the Brazilian coast. Yet, with the company's management team telling analysts at UBS that it doesn't plan to raise capital through either equity or debt offerings, investors are taking some comfort from what could be a stabilization in the Brazilian market after a long period of falling currency exchange rates and threats of further debt downgrades.

Yoga-apparel giant lululemon rose 6% after an earnings report that included some troubling news, but which pointed to a potential turnaround for the company. Lululemon said that same-store sales dropped 2%, with gross margins falling three full percentage points. Yet, new CEO Laurent Potdevin took a firm grip on the company's reins, providing necessary leadership for a company that has been plagued by miscues at the executive level and substantial turnover recently that has hampered its strategic vision. With rivals like Gap lurking in the wings and hoping to cannibalize business from the company, lululemon needs to move past its 2013 mistakes and set itself up for a more promising future.

Three stocks that could become your next huge winner
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have done it before, and now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Lululemon Athletica and Petroleo Brasileiro. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers