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Why Energizer Holdings, Luckin Coffee, and Datadog Jumped Today

By Dan Caplinger - Nov 13, 2019 at 4:31PM

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Earnings and other factors helped lift some stocks.

Wednesday was a topsy-turvy day for the major benchmarks, with early losses giving way to a more optimistic outlook by the end of the session. Investors still aren't sure what to expect from the Federal Reserve or from trade negotiations between the U.S. and China, but they're hopeful that positive economic trends can continue to carry stocks further into record territory. Some companies saw particularly good news that helped lift market sentiment. Energizer Holdings ( ENR 2.59% ), Luckin Coffee ( LKNC.Y -9.19% ), and Datadog ( DDOG -2.79% ) were among the top performers. Here's why they did so well.

Energizer keeps on going

Shares of Energizer Holdings climbed 15% after the battery maker reported favorable fiscal fourth-quarter financial results. Acquisitions helped to lift revenue dramatically for the company, but even Energizer's core organic growth was strong. Earnings climbed by double-digit percentages from year-ago levels. Investors also seemed pleased with Energizer's expectations for the coming 2020 fiscal year, including low-single-digit organic revenue growth and flat to moderately higher adjusted earnings per share. Energizer has made huge strides in diversifying its business to embrace car-related products, and that should help make it a stronger company in 2020 and beyond.

Pink bunny with black sunglasses reading Energizer.

Image source: Energizer Holdings.

Luckin serves up a hot quarter

Luckin Coffee saw its stock perk up by 13% following the Chinese company's release of third-quarter financials. Revenue was more than six times higher than it had been in the previous year's Q3, with gains in items sold and customer counts that were almost as impressive. Luckin has started to branch out beyond regular coffee drinks, adding tea and juice products to its lineup and also looking at selling coffee cups and related merchandise. Investors are excited about Luckin's plans to expand beyond China, and that could power even more growth for the coffee chain going forward.

Datadog fetches great results

Finally, shares of Datadog climbed 17%. The newly public data monitoring and analytics specialist saw revenue jump 88% in the third quarter of 2019, and it managed to break even on the bottom line on an adjusted basis. Datadog reported 727 customers with annual recurring revenue of $100,000 or more, which was up from 377 a year ago. Guidance for the fourth quarter featured similarly ambitious sales growth projections, and any losses should remain much more subdued than initially feared. Datadog's shares had a rich valuation even before today's gains, but at least for now, its pace of growth is keeping investors happy.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Energizer Holdings, Inc. Stock Quote
Energizer Holdings, Inc.
$39.42 (2.59%) $0.99
Luckin Coffee Inc. Stock Quote
Luckin Coffee Inc.
$10.37 (-9.19%) $-1.05
Datadog, Inc. Stock Quote
Datadog, Inc.
$159.63 (-2.79%) $-4.58

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

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