Please ensure Javascript is enabled for purposes of website accessibility

Why Endeavour Silver, PriceSmart, and Fastly Jumped Today

By Dan Caplinger – Sep 23, 2019 at 4:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

These stocks bucked a downward trend on Wall Street.

Major benchmarks finished mixed on Monday, with most bouncing back from steeper losses early in the session. Signs of weakness in the European economy rattled investors to begin the week, but as the day progressed, market participants seemed to get more comfortable with the prospects for U.S. stocks. Some companies also saw nice moves higher on good news. Endeavour Silver (EXK 0.00%), PriceSmart (PSMT -1.26%), and Fastly (FSLY 3.66%) were among the top performers. Here's why they did so well.

Endeavour shines

Shares of Endeavour Silver climbed nearly 10% on a good day for silver mining stocks in general. The price of silver bullion moved higher by almost 4% today, rising back above $18.60 per ounce as ongoing political tensions continue to send some investors looking for safe-haven investments. Endeavour has been volatile lately as it's faced the dual challenges of weaker production volume and higher operating costs. Yet with silver on the rise, Endeavour stands a better chance of being profitable in the long run. That hope is a big part of what drove shares higher today.

Kilo bars of silver stacked on top of each other.

Image source: Getty Images.

PriceSmart gets into the big leagues

Warehouse retailer PriceSmart saw its shares soar 20% after the company got an invitation to a high-profile stock index. S&P Dow Jones Indices said that PriceSmart will join the S&P SmallCap 600 Index, taking the place of the soon-to-be-acquired Finisar. The changes will take effect before the beginning of the session on Thursday, but many investors routinely try to get in ahead of the many index mutual funds and exchange-traded funds whose investment objectives require them to purchase shares of new index components once they're officially added.

Fastly picks up speed

Finally, shares of Fastly rose 9%. The cloud computing specialist's stock has been extremely volatile over the past couple of months, and its big jump in August regained all the ground the it had lost since its May IPO. Cloud-related stocks have experienced a correction recently after a huge upward move for the sector as a whole, and Fastly hasn't been immune to concerns that some of its share-price gains are due more to momentum-based trading strategies than fundamental growth. Yet few dispute that optimizing users' internet experiences will remain important for years to come, and that should support growth for Fastly for the foreseeable future.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fastly. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

PriceSmart, Inc. Stock Quote
PriceSmart, Inc.
$58.04 (-1.26%) $0.74
Endeavour Silver Corp. Stock Quote
Endeavour Silver Corp.
$2.50 (0.00%) $0.00
Fastly, Inc. Stock Quote
Fastly, Inc.
$8.49 (3.66%) $0.30

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.