Why United Continental Holdings, Zumiez, and TRW Automotive Soared Today

Stocks bounced back from their worst levels of the day, but these three stocks rose and never looked back. Find out more about what made them soar.

Jul 10, 2014 at 7:45PM

The stock market once again proved its amazing resiliency Thursday, recovering from losses of more than 1%, as investors gradually decided that a potential crisis in Europe was unlikely to become a big enough deal to slow down accelerating U.S. economic growth. Moreover, positive news from United Continental Holdings (NYSE:UAL), Zumiez (NASDAQ:ZUMZ), and TRW Automotive (NYSE:TRW) helped to set an optimistic tone for the market.


United Continental jumped 13% after releasing preliminary guidance for its second-quarter results yesterday afternoon. The airline said that passenger revenue per available seat mile climbed by 3.5% during the quarter, about half a percentage point higher than the top end of its previous guidance range. United Continental reported strong results domestically, which were consistent with what other airlines have said recently; but United also said that its Pacific segment performed better than expected. United Continental was having trouble keeping up with its airline peers recently due to some lingering issues related to the merger of its United and Continental divisions; as a result, shareholders saw the news as a positive sign of progress at the airline.

Zumiez rose 6% after the retailer said that its same-store sales rose 3.1% during the month of June, resulting in total net sales gains of more than 11% from year-ago levels. Moreover, Zumiez boosted its guidance for its second-quarter revenue and earnings, raising its anticipated sales range by 3% to 5%, and increasing its range on earnings per share by between $0.05 and $0.07. Given the headwinds that many retailers have continued to face during the spring months, the positive results suggest that Zumiez remains popular among its activewear apparel customers, and modest but consistent growth in comparables could keep Zumiez stock rising in the future.

TRW Automotive gained 8% after the maker of auto parts said that it had received a takeover bid. Although TRW didn't identify the potential acquirer, reports suggest that one of TRW's German auto-parts peers, ZF Friedrichshafen, was likely to be the unidentified bidder, and ZF confirmed that it had been in talks about a possible bid. At this point, TRW has hired a financial advisor to consider the offer, but it expects to continue its current business strategy while it evaluates whether to accept it. Given how far TRW shares have already climbed, it's uncertain how much more of a buyout premium shareholders might get if an official bid is made.

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 has no position in any of the stocks mentioned. 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.

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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information