Tuesday was a solid day for the domestic stock market, with the major benchmark indexes posting gains of around 1%. Market participants kept their eyes on the trade talks between the U.S. and China, with most hoping that the two countries can come to terms and avoid a re-escalation. Also, crude oil prices rose toward the $50 per barrel mark, which some investors saw as a reassuring signal about the strength of the U.S. economy. Among the day's top performing stocks were Tilray (NASDAQ:TLRY), Union Pacific (NYSE:UNP), and Tactile Systems Technology (NASDAQ:TCMD). Here's why each of them did so well.
Tilray heads higher
Shares of Tilray jumped 15% in the wake of positive comments from a stock analyst who's well-known for expertise in the cannabis industry. Vivien Azer at Cowen said that sales in the legal cannabis market in the U.S. could reach $80 billion by the year 2030, up $5 billion from her previous guidance due to greater-than-expected use among adults. Cowen kept its outperform rating on Tilray, which Azer predicts will reap some of the biggest benefits from the opening of Canada's recreational cannabis market. With higher sales and improving margins, Tilray could a look a lot more attractive in the near future.
Union Pacific gets a new executive
Union Pacific's stock climbed 8% after the railroad giant announced the hiring of a new chief operating officer. Jim Vena, who had about 40 years of experience with rival operator Canadian National Railway before retiring, has decided to come back to the industry. Several stock analysts praised the hire, and two boosted their price targets on Union Pacific stock into the upper $170s. It's interesting to see an executive hire below the CEO level having such a big impact on a stock, but Vena's experience could really help Union Pacific as it maneuvers to capitalize on its lower costs and greater efficiency.
Tactile Systems sees strong sales ahead
Finally, shares of Tactile Systems Technology soared 24% after it reported preliminary full-year results, including a 31% jump in total revenue. The company specializes in home-use medical devices for patients with chronic diseases, and said that its Flexitouch, Entre, and Actitouch systems all saw year-over-yea revenue gains of roughly 30%. CEO Jerry Mattys pointed to strong execution from his sales team, as well as surprisingly high volume from a key commercial contract. Mattys said he expects sales gains of 20% or more in the coming year as well. Recent successes in connection with sales of its products through the Veterans Administration have also opened a huge potential addressable market for Tactile Systems.