How Stillwater Mining, Constellation Brands, and Gilead Sciences Set New Highs Today

These three stocks hit new yearly highs on Wednesday. Find out why.

Jul 2, 2014 at 7:25PM

On Wednesday, stocks extended their gains from yesterday's big jump, as investors remained enthusiastic about the prospects for strong returns in the second half of 2014 despite the current lofty levels on the most popular market benchmarks. Given that the Dow and S&P 500 once again hit new record levels today, it's no surprise that hundreds of stocks in the market are setting new highs at current levels. Nevertheless, some of those stocks performed more remarkably than others, and Stillwater Mining (NYSE:SWC), Constellation Brands (NYSE:STZ), and Gilead Sciences (NASDAQ:GILD) were among the more noteworthy of the company's reaching their best levels in a year or more on Wednesday.

Source: Stillwater Mining.

Stillwater Mining climbed 2.5% as investors continue to benefit from improving conditions in the platinum and palladium markets. Yesterday's positive news from the auto industry on June sales helped push platinum-group metals prices higher, with automakers needing the precious metals in order to produce pollution-control devices for their vehicles. At the same time, international production of the metals has been in jeopardy for a while, and even though labor groups in South Africa had come close to agreeing on a deal to end a long strike, some concerns about a potential new strike among miners in South Africa pushed spot prices higher. Even though Stillwater Mining has diversified its mining exposure to include gold, most investors still look at the company as a play on its platinum-group metal production, and right now, all signs look favorable for continued growth there.


Source: Wikimedia Commons.

Constellation Brands gained more than 2% as the beer and spirits giant released its latest earnings report. Sales jumped more than 125% thanks to the company's acquisition of Grupo Modelo's U.S. beer business last year, and strong demand led to higher volume growth and a jump of 14% in net sales. Even though sales of wine and spirits were somewhat sluggish, falling 1% after adjusting for currency fluctuations, investors applauded an increase in Constellation's profit guidance, which it raised from a range of $3.95 to $4.15 per share to a new range of $4.10 to $4.25. With operating margins for the beer business soaring, Constellation seems to be riding the right wave to future growth.


Source: Gilead Sciences.

Gilead Sciences rose 2% to set a new all-time high today, as the biotech giant continues to draw enthusiasm over the prospects for its Sovaldi treatment for hepatitis C. So far, sales of the hep-C drug have been extremely strong, and Gilead hasn't even yet tapped the full potential of the drug as it's still looking for approval in some high-profile international markets, including Japan. Yet Sovaldi isn't the only treatment making news for Gilead, as the company awaits FDA approval decisions for its idelalisib drug to treat various types of blood-related cancers. With deadlines for FDA review coming in the next couple of months, shareholders hope that positive news will serve as a catalyst for further gains.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Gilead Sciences. 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.

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.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

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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