Monday began on a down note for the stock market, as the Dow Jones Industrials fell back down below the 20,000 level. Major market benchmarks finished with losses of 0.6% to 0.8%, and some market commentators attributed the declines to nervousness about the Trump administration's actions to clamp down on immigration. Others noted that the latest reading of U.S. economic growth showed a 1.9% rise in gross domestic product for the fourth quarter, finishing the year with an overall GDP increase of just 1.6%, down a full percentage point from 2015's growth. Despite the overall sullen mood in the market, some stocks gained ground, and GoPro (NASDAQ:GPRO), Movado Group (NYSE:MOV), and IPG Photonics (NASDAQ:IPGP) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
GoPro takes a pretty picture
GoPro rose 7% after getting a vote of confidence from a major institutional investor. According to a filing with the U.S. Securities and Exchange Commission, investing giant BlackRock boosted its stake in the maker of extreme camera equipment to more than 6%, up by about a full percentage point from its previous report. Investors remain nervous about GoPro's future prospects, given the fact that it has suffered a recall of a key product and that some have concerns about how well the company did during the holiday quarter. Yet the confirmation of buying interest on Wall Street was a nice source of optimism for shareholders. With GoPro set to report earnings on Thursday, investors won't have to wait long to see which way the company is likely to move in the near future.
Movado has a good time
Movado Group gained 6% in the wake of an analyst upgrade from analysts at Sidoti. The analyst company boosted its rating on the watchmaker from neutral to buy, and it established a price target of $34 per share. That target implies more than 20% more upside for Movado shares, and it comes after the high-end retailer has tried to build some positive momentum following the key holiday shopping season. Luxury brands have gotten hit hard, but some believe that more favorable conditions for the more upscale end of the retail market could finally start appearing. Movado has a long way to go before it can reclaim its highest levels in recent years, but even a step in the right direction is enough to get some investors excited about the watch stock right now.
IPG Photonics gets hot
Finally, IPG Photonics rose 9%. The laser manufacturer reported preliminary financial results for the fourth quarter of 2016, saying that revenue would come in around $280 million and earnings would be between $1.39 and $1.42 per share. Both figures are well above the previous guidance that IPG Photonics had given, including a range of $255 million to $270 million for sales and a $1.17 to $1.32 per share range for earnings. CEO Valentin Gapontsev noted that strength in Asia and Europe drove its performance, with the materials processing industry contributing to the rebound. With 10 years in the books as a publicly traded company, IPG Photonics is hoping to keep seeing the laser industry evolve and grow for the foreseeable future.
Dan Caplinger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends GoPro and IPG Photonics. The Motley Fool has the following options: short January 2019 $12 calls on GoPro and long January 2019 $12 puts on GoPro. The Motley Fool recommends Movado Group. The Motley Fool has a disclosure policy.