Please ensure Javascript is enabled for purposes of website accessibility

These 3 Completely Ordinary Stocks Were Market Winners Wednesday

By Dan Caplinger - Updated Feb 18, 2021 at 1:59PM

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

You won't find EV stocks, SPACs, or tech companies on this list -- but they still posted solid gains.

The stock market was mixed on Wednesday, with the Dow Jones Industrial Average (^DJI 1.76%) once again setting a new record high. The S&P 500 (^GSPC 2.47%) and Nasdaq Composite (^IXIC 3.33%) fell back slightly, continuing to lag behind the Dow after some strong performance recently.

Index

Percentage Gain (Decline)

Point Gain

Dow

0.29%

90

S&P 500

(0.03%)

(1)

Nasdaq Composite

(0.58%)

(82)

Data source: Yahoo! Finance.

As the market has raced ahead in 2021, it's been easy to think that the only winning stocks are in red-hot, overhyped sectors like electric vehicles, special purpose acquisition companies, or cloud-based tech players. But today proved that you don't have to have a complicated business to be a winner. Let's take a closer look at retailer Tractor Supply (TSCO 3.51%) and airlines Mesa Air Group (MESA 6.46%) and SkyWest (SKYW 5.74%) to see why they climbed higher.

Motoring to all-time highs

Tractor Supply stock climbed more than 5% on Wednesday. That was enough to send it to a record high of its own, and it has more than doubled in less than a year.

The gains for Tractor Supply stemmed from its acquisition of retail peer Orscheln Farm and Home. As a privately held retailer, Orscheln has 167 stores in 11 states across the Great Plains and Midwest. Tractor Supply paid $297 million in cash in the deal, acquiring $23 million in future tax benefits as a result of the acquisition.

Orange-red tractor in a field on a mostly sunny day.

Image source: Getty Images.

Tractor Supply is excited to expand its geographical footprint and has high respect for the Orscheln business operation. As Tractor Supply CEO Hal Lawton said, "We look forward to bringing together our highly complementary cultures and teams." Barry Orscheln, who heads up Orscheln Farm and Home as CEO, expressed similar thoughts.

The acquisition should immediately add to earnings. Given how well the retailer has done lately, the strategic purchase is just gravy for Tractor Supply's success.

Flying higher

Meanwhile, in the airline industry, shares of Mesa Air Group and SkyWest were up 11% and 6%, respectively. Those numbers dramatically exceeded the gains in shares of major carriers.

Mesa led the way higher after getting favorable comments from Wall Street analysts. B of A Merrill Lynch upgraded the stock all the way from underperform to buy, boosting its price target from $2 per share to $15. Analysts believe that Mesa is in a good position to rebound by taking advantage of government programs meant to keep airlines in business. Moreover, it has solid contracts with two of the big four U.S. carriers.

SkyWest operates a similar regional service, partnering with a number of bigger airlines in the U.S. The Utah-based airline didn't get the same nod from B of A Merrill, but many investors saw enough similarities to send its share price higher as well.

Airlines have been down and out ever since the pandemic struck a year ago. Now, investors are getting more optimistic that with coronavirus vaccines rolling out around the country and across the globe, a return to typical travel conditions might not be too far behind. That'd be good news for everyone, but Mesa and SkyWest shareholders would be especially pleased to see their airlines get back to business as usual.

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

Tractor Supply Company Stock Quote
Tractor Supply Company
TSCO
$192.43 (3.51%) $6.53
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$33,212.96 (1.76%) $575.77
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$4,158.24 (2.47%) $100.40
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$12,131.13 (3.33%) $390.48
SkyWest, Inc. Stock Quote
SkyWest, Inc.
SKYW
$26.55 (5.74%) $1.44
Mesa Air Group, Inc. Stock Quote
Mesa Air Group, Inc.
MESA
$3.13 (6.46%) $0.19

*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 service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

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.