Why GameStop, TriNet Group, and Restoration Hardware Jumped Today

The stock market posted solid gains Friday on positive readings for economic growth; yet these stocks did much better than the broader market. Find out more about what made these stocks soar.

Mar 28, 2014 at 8:00PM

On Friday, investors responded positively to favorable economic news, with favorable readings on personal income and spending pointing to the resiliency of the American consumer, even in the face of tough winter conditions that many businesses have blamed for temporary shortfalls in revenue and earnings. Even though the broader market gave up most of its gains from earlier in the day, GameStop (NYSE:GME), TriNet Group (NYSE:TNET), and Restoration Hardware (NYSE:RH) all managed to hold onto large advances in their respective share prices going into the weekend.


GameStop jumped 9% Friday, more than making back its losses from yesterday following a quarterly report that initially disappointed investors. The video game retailer saw same-store sales rise 7.8%, but adjusted earnings fell 12%. Despite favorable guidance for 2014, investors worried about the prospect of tougher competition from Wal-Mart (NYSE:WMT) and other retailers, as well as steps from video game makers to eliminate the need for GameStop's middleman services. Analysts at Sterne Agee accentuated the positives in GameStop's report today, with expectations that earnings growth and GameStop's investor day next month could send the stock higher this year if the video game industry generally prospers from the PlayStation 4 and Xbox One. Moreover, initiatives to broaden GameStop's scope to sell other electronics could be a good way to use its store base, even if other companies have struggled selling those electronics on their own.

Newly public TriNet Group rose another 11.5%, adding to its positive performance on Thursday in its first day of post-IPO trading. The human-resources outsourcing company is jumping onto the trend toward cloud-based office support, following in the footsteps of Workday (NYSE:WDAY) in its effort to cater to small- and medium-sized businesses searching for ways to support their employees without having full-time HR staff. With shares up a third from its offering price of $16 per share, TriNet has inspired solid support among investors hoping to cash in on the growth prospects that serving smaller enterprise customers offers.

Restoration Hardware soared 13% despite reporting weaker-than-expected sales in its holiday quarter. Shareholders responded favorably to positive guidance from the home-furnishings retailer, with earnings expectations for the current quarter that are 25% to 60% higher than the consensus forecast. The guidance signals better gross margins for Restoration Hardware, as revenue growth hasn't come in quite as strong as many had thought the company would manage. But with same-store sales growth of 24%, Restoration Hardware has come a long way from its brush with disaster just a few short years ago.

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 owns shares of GameStop. 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