Wednesday was a mixed day for the stock market, with various sectors moving in different directions. The energy industry was downbeat, as crude oil prices once again fell, this time dropping below $43 per barrel and spurring new concerns about more pain for oil and gas exploration and production companies. However, technology stocks did well, and that helped send the Nasdaq Composite higher by three-quarters of a percent. Within the markets, individual stock news was more important than overall macroeconomic trends. Winnebago Industries (WGO 1.81%), CA (CA +0.00%), and La-Z-Boy (LZB +1.15%) 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.
Winnebago hits the gas
Shares of Winnebago Industries jumped 14% after the company reported stellar growth in its fiscal third-quarter financial results. The recreational vehicle specialist said that revenue jumped 75% from the year-ago quarter, climbing primarily due to Winnebago's acquisition of Grand Design late last year. Net income rose by a third, and although the motorized RV segment saw sluggish results, the towable category's growth was strong, both due to acquisitions and from organic growth from Winnebago-branded products. CEO Michael Happe was happy with the quarter, noting that the integration of Grand Design has gone more smoothly than expected. With efforts to reduce debt and focus on new products in a favorable environment for the RV industry, Winnebago could see further gains if things continue to go well.
Image source: Winnebago Industries.
Will CA get bought out?
Stock in software specialist CA climbed 13% on speculation that it might be the subject of an acquisition bid in the near future. Reports surfaced that industry peer BMC Software might be looking at acquiring CA. A combination would be complementary, bringing together CA's exposure to the mainframe systems industry with BMC's tech-support focus, but it would also involve more challenges with financing than usual because BMC is privately held. With CA's market capitalization having climbed to almost $15 billion after today's stock-price gains, shareholders shouldn't count on the two companies being able to find a deal that works for CA investors and will be able to draw enough financing support to be doable.
La-Z-Boy perks up
Finally, shares of La-Z-Boy soared 22%. The furniture maker reported fiscal fourth-quarter financial results that were better than expected, with same-store sales climbing 2.4% and net income jumping by more than a fifth from year-ago levels. La-Z-Boy also expressed confidence in its view of the stock's future, boosting its current stock buyback authorization to allow for the future repurchase of an additional 6 million shares. The company has made changes in its strategy serving the furniture market, aiming at higher-ticket, higher-margin premium products and working to boost its e-commerce traffic. Overall, the retail industry has faced some major challenges lately, and La-Z-Boy hasn't been entirely immune to the resulting downward pressures on its business. Yet investors are increasingly optimistic that La-Z-Boy will be able to navigate its way through the current climate and keep generating growth going forward.
