Why Kandi Technologies, URS, and AECOM Technology Are Today's 3 Best Stocks

The S&P 500 jumps from the word "Go" as Kandi Technologies, URS, and AECOM Technology all advance by double-digit percentages.

Jul 14, 2014 at 5:15PM

It was the perfect start to the week, if you're an optimist that is, with the broad-based S&P 500 (SNPINDEX:^GSPC) hugging a tight daily range but holding on to its steady gains all day.


The interesting part about today's move higher was that it was made despite no important economic data releases at home or abroad. Instead, investors focused on a wave of merger and acquisition activity that occurred over the weekend across a number of sectors. In addition, though we're extremely early in earnings season, a number of companies that have reported have topped estimates signaling that the polar vortex is clearly in the rearview mirror and that there is no endemic slowdown in U.S. growth prospects.

By day's end, the S&P 500 had finished higher by 9.53 points (0.48%) to close at 1,977.10.


Source: Kandi Technologies.

Leading all stocks to the upside today was China-based electric-vehicle and all-terrain vehicle manufacturer Kandi Technologies (NASDAQ:KNDI), which vaulted higher by 26.6% after announcing that it had sold 4,114 electric vehicles, or EVs, in the second quarter. Comparatively, that's a 238% increase from the 1,215 EVs it sold in the first quarter. As Kandi's CEO notes, "We have not only achieved success in implementing the Hangzhou Public EV Sharing System, or the 'Carshare' Program, but also in growing our group leasing model."

While these numbers are an absolute blowout for Kandi based on what investors had been expecting, and the business model makes a lot of sense on paper considering the need for low- or no-emission alternatives for some of China's highly polluted cities, I still remain somewhat skeptical. Specifically, I worry about Kandi's ability to keep up with competition that has deeper pocketbooks, such as Tesla Motors. For the time being, I remain a bystander on Kandi.

The other two big gainers for the day come from the same deal announcement: AECOM Technology's (NYSE:ACM) agreement to purchase engineering and construction firm URS (NYSE:URS) for roughly $4 billion in a combined cash and stock deal. If you include debt the deal is valued at closer to $6 billion. All told, URS stockholders, who saw their shares rise by 12.3% today, will receive $33 in cash and 0.734 shares of AECOM stock for each share they own – which is good news because AECOM shares vaulted higher by 10.1% as well.

Source: Nuclear Regulatory Commission, Flickr.

The deal would appear to make sense on a number of fronts for AECOM. It'll allow the combined entity to be more competitive on a global scale for projects in rapidly growing Asia, it'll further expand AECOM's footprint in the energy and construction sectors, and it gives AECOM access to URS' U.S. government contracts which accounted for around a third of its revenue last year. In other words, AECOM's revenue stream just got a whole lot safer and its global growth prospects appear to have improved due to the new size of this combined company. Although I'm a bit reluctant to suggest investors consider the idea of chasing shares higher here, over the extreme long run there's little reason to believe that AECOM shares couldn't head even higher.

Forget electric vehicles! Warren Buffett has called this the greatest threat to his most-beloved business!
At the recent Berkshire Hathaway annual meeting, Warren Buffett said this emerging technology is threatening his biggest cash cow. While Buffett shakes in his billionaire boots, only a few investors are embracing this new market, which experts say will be worth over $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping on to one company that could get you the biggest piece of the action. Click here to access a free investor alert on the company we're calling the brains behind the technology.

Sean Williams is short shares of Tesla Motors but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool owns shares of, and recommends Berkshire Hathaway and Tesla Motors. 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