The stock market got off to a slow start for the week, with modest losses on Monday that amounted to just a small fraction of a percent for major benchmarks. Investors continued to wrestle with big-picture issues on the macroeconomic and geopolitical fronts, and with earnings season just about to start, many market participants are eager to see signs of whether the economy will be able to stay out of recession. Even with the overall lack of direction for the broader indexes, however, some stocks saw nice moves higher. PG&E (NYSE:PCG), Livongo Health (NASDAQ:LVGO), and RingCentral (NYSE:RNG) were among the top performers. Here's why they did so well.
PG&E deals with danger
Shares of PG&E climbed 6%, adding to Friday's gains as the electric utility managed to overcome some weather-related challenges. Over the weekend, the company proactively turned off power for portions of three counties in California, and patrols began yesterday looking to see what impacts there were to the power lines and poles in the area. Investors have watched PG&E's bankruptcy proceedings closely, and a lawsuit filed last week suggested that shareholders might end up losing less of their eventual recovery to legal fees. There's still a long way to go, but some like the steps that PG&E is taking to protect customers and handle risk before it turns into huge, damaging events.
Livongo gets a big contract
Livongo Health saw its stock pick up 18% after the diabetes treatment specialist got a key contract win. Livongo signed a two-year agreement with the Federal Employees Health Benefits Program, under which the company will provide eligible federal employees suffering from the disease with its Livongo for Diabetes solution. The company expects 5.3 million employees and family members to get access, and it hopes to see 25,000 new subscribers to the program in 2020 and 45,000 by 2021. Livongo boosted its revenue projections in response, and the contract is a big vote of confidence that the diabetes treatment company has what it takes to serve customers well.
RingCentral keeps ringing up gains
Finally, shares of RingCentral finished higher by 6%. The telecom company added to gains from Friday, which stemmed from RingCentral's move to collaborate with industry peer Avaya Holdings in a strategic partnership. Today's gains were likely due to positive comments from stock analysts, with J.P. Morgan weighing in with an upgrade to overweight and an $82 boost to its target price to $225 per share. The analyst firm believes that RingCentral will see accelerating growth in its cloud-based communications platform, and Avaya's massive customer base will make a huge difference in both companies' prospects for long-term success from the partnership.