Why Cisco Systems, Plug Power, and Kindred Healthcare Jumped Today

The stock market plunged Thursday, but these three stocks did just fine. Find out more about what made them soar.

May 15, 2014 at 8:05PM
Longview

Thursday brought another day of sharp declines for the stock market, as investors focused on the negatives from certain major earnings reports and economic data releases today. In particular, poor results from the nation's largest retailer raised questions about the strength of the consumer economy, and economists seem less certain about how strongly the U.S. economy will bounce back from a terrible winter quarter. Still, despite the gloomy mood on Wall Street, Cisco Systems (NASDAQ:CSCO), Plug Power (NASDAQ:PLUG), and Kindred Healthcare (NYSE:KND) powered ahead today.

Csco

Source: Cisco Systems.

Cisco Systems rose 6% after posting quarterly results that weren't quite as negative as investors had feared. To be sure, Cisco still faces some major challenges, as sales fell by 5.5% from year-ago levels, and the networking giant had to work hard just to keep its earnings stable compared to last year's fiscal third quarter. But a 2.6% rise in service-related revenue showed the path that Cisco is trying to take toward longer-term stability. With Cisco having exceeded its own guidance, investors appear to share CEO John Chambers' optimism that customers will perceive the company as a one-stop shop for their information technology needs. Cisco will continue to face tough competition in core focus areas like the Internet of Things and other cloud initiatives, but shareholders are starting to believe that the worst might be over.

Plug

Source: Plug Power.

Plug Power climbed 5.5% after the fuel-cell specialist got an analyst upgrade. Yet, as has happened with increasing frequency in this volatile market, the upgrade came with a catch: the analyst also reduced the price target on the company, in part to reflect the plunge in Plug Power's share price over the past few months. Many investors remain skeptical about Plug Power's long-term ability to beat out other fuel-cell companies and rivals in other forms of alternative energy. But with a big capital-raising offering pulling in brand-new shareholders at $5.50 per share -- almost 40% above today's levels -- Plug Power still has massive support from the investing community that could help keep its share price rising in the future.

Kindred Healthcare jumped 11% as the provider of long-term care services announced a bid to buy Gentiva Health Services (NASDAQ:GTIV). The bid would pay Gentiva shareholders about $14 per share, representing a 64% premium to its closing price last night, and the deal would be 50% cash and 50% Kindred Healthcare shares. Gentiva Health Services rejected Kindred Healthcare's offer, and now the big question facing Kindred is whether to go through a proxy fight to try to take control of Gentiva on a hostile basis. What's interesting is that Kindred shares are also higher, reflecting the belief in the potential benefits from a combination despite the risks involved.

Invest in the next wave of health-care innovation
The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion dollar industry." And the technology behind is poised to set off one of the most remarkable health care revolutions in decades. The Motley Fool's exclusive research presentation dives into this technology's true potential, and its ability to make life-changing medical solutions never thought possible. To learn how you can invest in this unbelievable new technology, click here now to see our free report.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

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.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

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. The show is also heard weekly on dozens of 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. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers