Why Baidu, First Solar, and Alpha Natural Resources Jumped Today

The stock market bounced back Tuesday, showing modest gains after two straight days of dramatic losses. The tech-heavy Nasdaq got most of the benefit from the bounce, climbing almost 1%, while other market indexes had to make do with much smaller gains. Nevertheless, for investors in Baidu (NASDAQ: BIDU  ) , First Solar (NASDAQ: FSLR  ) , and Alpha Natural Resources (NYSE: ANR  ) , today's gains were especially sweet, as those stocks were among the best performers in the market Tuesday.

Baidu gained 5% on a strong day for Chinese stocks in general, with the added bonus of reports of a possible deal between its Qunar travel website and industry rival Ctrip.com International (NASDAQ: CTRP  ) . Although discussions are reportedly at an early stage and could involve anything from a takeover to a strategic partnership, Baidu could benefit greatly from taking a bigger role in the online travel industry. As more Chinese residents become more prosperous and can afford to travel, the online trip-planning portal will be increasingly lucrative. Moreover, using Baidu's search prowess will give any combined entity a valuable competitive advantage.

First Solar rose 7%, leading all of its peers in the S&P. The momentum-sensitive stock gained back all the ground it lost late last week and yesterday, as shareholders look favorably on the combination of First Solar's strong presence in the utility-scale solar market and the company's new plans to work itself into the residential and small-commercial market. Despite concerns about the sustainability of utility-scale project sales, First Solar has the financial resources and the experience to challenge its solar rivals. Still, bullish investors will want to watch closely to make sure that First Solar's ambitious earnings guidance for the next few years won't prove unreachable.

Alpha Natural Resources also picked up 7%, with coal stocks in general reacting favorably to positive comments from various players in the industry. Today another of Alpha Natural's peers raised its guidance for coal production by roughly 3%, citing higher demand for thermal coal used for electricity production. The outlook for metallurgical coal used in steel production isn't yet as strong, but today's positive performance in China could also change that outlook in the long run. With Alpha Natural Resources beaten down recently, even a glimmer of good news could be enough to keep it and the rest of the sector moving higher for the foreseeable future.

3 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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2907961, ~/Articles/ArticleHandler.aspx, 7/26/2014 3:53:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement