Please ensure Javascript is enabled for purposes of website accessibility

Why Stars Group, Sibanye Gold, and Zynex Jumped Today

By Dan Caplinger - Oct 2, 2019 at 4:30PM

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

On a terrible day for the market, these stocks fought against the tide.

Wall Street went through a minor panic attack on Wednesday, with investors sending major indexes down roughly 2% to add to Tuesday's losses. Some more poor economic data signaled that the U.S. economy might finally be faltering after a long bull run, and that has market participants trying to anticipate the end of the 10-year-old bull market. Even with the downward pressure, though, some stocks defied the odds and gained ground. Stars Group (TSG), Sibanye-Stillwater (SBSW -3.85%), and Zynex (ZYXI 0.13%) were among the top performers. Here's why they did so well.

Flutter bets big on Stars Group

Shares of Stars Group jumped 30% after the sports betting company got a merger offer from one of its largest peers. Flutter Entertainment, which operates a similar business in the U.K. that includes the once-dominant Party Poker website, offered to combine with Stars Group in a deal that would create the biggest global player in the industry. The $6 billion merger would give Stars Group investors 0.2253 shares of Flutter in exchange for their stock. Flutter's share price also climbed, and many gambling industry watchers believe that further consolidation is not only likely but necessary.

Craps table with dice showing 7 and various chips on the pass line along with the stick.

Image source: Getty Images.

Sibanye-Stillwater shines thanks to precious metals gains

Sibanye-Stillwater stock picked up 7% on a good day for the precious metals markets. The mining company benefited from the $25-per-ounce rise in gold prices to move above the $1,500 level. However, it also got a nice boost from a $32-per-ounce jump in palladium to record levels around $1,670. Sibanye-Stillwater has operational challenges in making the most of its mining opportunities. Yet the uncertainty in the stock market has some investors looking to gold and other precious metals as a safe haven, and that could help the company's prospects in the immediate future.

Zynex sees huge order growth

Finally, shares of Zynex climbed 11%. The medical technology company said that it saw 95% order growth in the third quarter of 2019 compared to the year-ago period. Zynex's non-invasive medical devices for treating pain management, cardiac monitoring, and various other functions saw order counts jump 30% just from three months ago. CEO Thomas Sandgaard attributed the rise to the company's expansion of its sales force that it's been implementing for a while now, and it's positioning its NexWave pain treatment device as a superior alternative to opioids. If customers keep finding that argument compelling, it could keep driving Zynex higher.

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

Sibanye Stillwater Limited Stock Quote
Sibanye Stillwater Limited
$9.93 (-3.85%) $0.40
The Stars Group Inc. Stock Quote
The Stars Group Inc.
Zynex, Inc. Stock Quote
Zynex, Inc.
$7.93 (0.13%) $0.01

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

Related Articles

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 06/30/2022.

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.