Why SunPower, Itron, and Tenet Healthcare Jumped Today

Even as the stock market plunged, these three stocks performed strongly Friday. Find out more about what made them soar.

Apr 25, 2014 at 8:05PM

On Friday, the stock market gave up all of its gains for the week and then some, as earnings scares sent many popular stocks downward, and rising tensions between Ukraine and Russia brought back geopolitical risk into the investing equation. Major market benchmarks finished the day with losses of as much as 2%, but SunPower (NASDAQ:SPWR), Itron (NASDAQ:ITRI), and Tenet Healthcare (NYSE:THC) bucked the downward trend to post solid gains on the day.


Source: SunPower.

SunPower rose 7% as the solar giant once again crushed expectations. Revenue gained 19%, and extremely strong net margins of 11% led to adjusted net income of $0.49 per share. Yet, as Fool solar specialist Travis Hoium pointed out earlier today, SunPower could have even more value than investors believe, as its practice with respect to the future value of some of its assets is more conservative than the tack some of SunPower's competitors take. Given that SunPower has already demonstrated its ability to top the industry in areas like efficient technology and growth potential, today's pop could be just the beginning of a longer-term uptrend for SunPower stock.

Itron jumped 11% as the company behind smart-metering solutions for electric, gas, and water utilities and their customers reported favorable results for its first quarter. Revenue climbed 6%, surprising investors who had expected a slight decline in sales from the company, and earnings per share came in $0.05 higher than shareholders had anticipated. Still, investors expect sales to continue to decline throughout the rest of 2014, and unless Itron can build up some positive momentum from this quarter's solid results, the stock's bounce could prove to be a purely temporary phenomenon.

Tenet Healthcare gained 9% on a strong day for hospital stocks generally. Although some of Tenet Healthcare's peers reported earnings today, the upward momentum for Tenet and hospital stocks appeared to come more from optimism about the prospects for more favorable Medicare and Medicaid reimbursement policies than some investors have feared. Lawmakers recently punted the hot-button issue another year into the future, passing a one-year patch that delayed implementation of what would have been 24% cuts in Medicare reimbursements for doctors this year. But the real question for Tenet and its peers is whether permanent reform will have a positive or negative impact on their business models, especially as the Affordable Care Act takes root within the nation's medical system.

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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.

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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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