Why Peabody Energy, CEMEX, and Aruba Networks Rose Today

Stock markets fell sharply Friday, but these three stocks still managed to rise. Find out more about what sent them higher.

Apr 4, 2014 at 8:00PM

Once again, the stock market flirted with all-time record highs Friday morning, only to give way to a sizable decline by the close. Investors are increasingly nervous about the heights to which stocks have risen, especially in momentum-driven areas of the stock market. Yet, even as hot sectors like biotech and social media got hammered hard today, Peabody Energy (NYSE:BTU), CEMEX (NYSE:CX), and Aruba Networks (NASDAQ:ARUN) were among the rare stocks that were able to escape the carnage.


Source: Peabody Energy.

Coal producer Peabody Energy gained 3% as analysts at Cowen upgraded the stock today. Even though coal prices have been in the basement for an extended period of time, Peabody has some defenses against low prices that its peers don't have. With the potential for lower costs from its Australian coal assets, Peabody isn't reliant on U.S. coal resources like most of its domestic peer group, giving Peabody a competitive advantage. Although Cowen's price-target increase of just $1 per share to $20 isn't all that ambitious, it was enough to drive interest in the entire coal group today, with some of its weaker coal counterparts posting even larger percentage gains.

CEMEX gained 5% after a Bloomberg report said that the two biggest cement companies in the world are looking at merger prospects. As a result, stocks throughout the sector rose, including both cement and aggregates producers in the U.S., as well as Mexico's cement giant. Unlike coal, cement and aggregates have been seen as potential growth industries, as rising home prices and a jump in commercial construction activity have pointed to stronger demand for building materials. Even if consolidation doesn't take place in the industry as quickly as some speculators hope, CEMEX looks like a reasonable bet to take advantage of greater demand for cement in the Americas.

Aruba Networks jumped 4% after analysts at Northland Capital gave an outperform rating to the networking stock. The analysts' report noted that Aruba has done a good job of being more efficient with its business, growing margins, and coming out with new software products that provide solid prospects for rising revenue. Specifically, Aruba's ClearPass product manages security access to sensitive network information while still allowing mobile access to authorized users, while its ClientMatch ensures that mobile devices and wireless local-area networks work as efficiently as possible while maximizing speed. Given the demand for more efficient communication with mobile devices on networks, Aruba has plenty of growth potential for the future.

Three stocks poised to be multi-baggers
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 found multi-bagger stocks time and again. 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 has no position in any of the stocks mentioned. 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers