Why Energizer Holdings, LogMeIn, and Aspen Technology Jumped Today

The stock market set new all-time highs, but these stocks put in even more impressive performance Wednesday. Find out more about what made them soar.

Apr 30, 2014 at 8:05PM

The stock market finally gave patient investors their long-awaited reward today, as the Dow managed to climb to a new all-time record high for the first time in 2014. The average only eclipsed its previous high by four points, but investors remained enthusiastic about a strong set of earnings reports and continued confidence from the Federal Reserve to keep tapering its bond-buying activity. Even though the broader market's gains were modest, Energizer Holdings (NYSE:ENR), LogMeIn (NASDAQ:LOGM), and Aspen Technology (NASDAQ:AZPN) posted sharp advances on Wednesday.


Source: Wikimedia Commons.

Energizer Holdings jumped 14% after the battery maker and personal-care products manufacturer announced its latest earnings results. Revenue dropped 3%, but earnings per share came in almost 10% higher than investors had expected to see. Energizer's guidance was solid, but perhaps the most intriguing news for shareholders was that the company intends to break its two main divisions into separately traded companies. Interestingly, although most people know Energizer best for its batteries, its personal-care division has actually shown much stronger growth in sales and net income in recent years. Energizer hopes the move will unlock shareholder value and allow each company to pursue its own strategic vision, and it expects a spinoff to occur by the end of next year.

LogMeIn climbed 16% after its own quarterly report showed solid growth. The provider of services to allow remote access for computers saw a 31% jump in sales from the year-ago quarter, and earnings per share came in better than expected by a penny. Efforts to rein in costs and improve pricing led to a gain of two full percentage points in adjusted operating margins to 20%, and LogMeIn raised its guidance on the revenue front by $10 million to $11 million, and earnings per share by $0.01 to $0.03, further exciting investors. LogMeIn's move to make its remote-access service premium-only also helped bring in customers.

Aspen Technology rose almost 14% after the business-services software developer reported a more than 30% rise in revenue in its most recent quarter. Adjusted earnings per share doubled, and Aspen Technology had strong success in boosting its sales from subscriptions and software. After its successful earnings report, Aspen Technology also got an upgrade from an investment-research firm, which reflected investor enthusiasm for the company's presence in the enterprise cloud software space. Given the difficulties some momentum stocks have had justifying their share-price moves, Aspen Technology's financial results were a nice departure, showing there might still be good plays in the space.

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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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