Why CarMax, Flamel Technologies, and ExOne Jumped Today

The stock market closed at record highs today, and these three stocks helped lead the way. Find out more about why they soared.

Jun 20, 2014 at 8:02PM
Longview

Stocks vaulted to new all-time record highs as investors continued to focus on the generally favorable conditions in the U.S. economy, ignoring potential risks from conflict in Iraq. With the Federal Reserve having confirmed the optimistic mood among investors that the domestic economy is moving forward as anticipated and will continue to enjoy the support of the central bank to ensure it stays on a positive course, the path of least resistance for the markets remains up. Moreover, positive news continues to flood in on the individual company front, with CarMax (NYSE:KMX), Flamel Technologies (NASDAQ:FLML), and ExOne (NASDAQ:XONE) among the best performers Friday.

Kmx

CarMax soared more than 16% as the national auto retailer reported extremely strong results for its most recent quarter. Revenue jumped 13% on a 9.8% rise in total unit sales, with same-store unit sales jumping by 3.4%. Earnings came in well above what shareholders had expected to see, as traffic rose both to existing stores and to its e-commerce website, with new locations in previously untapped markets paving the way to future growth. In particular, average monthly visits to the company's website jumped by a quarter, with its mobile site seeing even faster growth. Even as the economic recovery has gained speed, many car buyers have been reluctant to replace older vehicles, and CarMax has cashed in on the desire for reliable yet less expensive used-car offerings rather than buying new.

Flamel Technologies jumped 19% as speculation rose that the maker of the FDA-approved neostigmine methylsulfate injection product Bloxiverz will win exclusivity, with the FDA expected to stop allowing previously grandfathered unapproved neostigmine treatments to be sold. Bloxiverz is indicated for use in reversing the effects of certain neuromuscular blocking agents during surgery. The situation is an unusual one because typically, gaining FDA approval is the point at which companies get exclusive rights to sell a particular compound. With limited supplies of neostigmine having been available recently, giving Flamel exclusive rights could help it capture the entire neostigmine market and potentially boost its profits substantially.

Xone
Source: ExOne.

ExOne climbed 9% despite getting downgraded by an analyst firm today. ExOne has fallen sharply along with companies throughout the 3-D printing space, as investors struggle to figure out fair valuations for stocks within the high-growth industry. Still, ExOne's emphasis on printing metal objects could prove to be extremely valuable, especially as many major potential buyers of 3-D printers would include companies in the business of producing fabricated metal parts for assembly. Despite concerns about a major customer's future plans, ExOne still has a good shot at finding new avenues for growth.

You can't afford to miss this
"Made in China" -- an all too familiar phrase. But not for much longer: There's a radical new technology out there, one that's already being employed by the U.S. Air Force, BMW, and others. Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion-dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made in China" for good. Click here!

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends BMW, CarMax, and ExOne and owns shares of CarMax and ExOne. Try any of our Foolish newsletter services free for 30 days. 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.

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