Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
Once again, the stock market gave up gains early in the session, with the Dow again topping 16,000 briefly only to give up ground and finish down slightly. Yet even as investors seem to be getting more nervous about the sustainability of the bull market, Brocade Communications Systems (BRCD), Qiwi (QIWI 9.88%), and Nuverra Environmental Solutions (NESC) all managed to post nice gains of between 6% and 8% today. Let's take a closer look to see what inspired these stocks to climb Tuesday.
Brocade climbed more than 8% after reporting earnings after the market closed yesterday. Despite a 3% drop in year-over-year revenue, the networking company saw net income and margins climb, with a 19% jump in earnings beating expectations. Rival Cisco Systems (CSCO -0.40%) had painted a dour picture of the industry recently in its own earnings report, and Brocade's relatively strong performance was even more impressive in that light.
Russian payment-services provider Qiwi jumped 6% on its own impressive earnings report, with sales rising by nearly half and adjusted profits also posting a 46% gain. With improved guidance for the remainder of the year, Qiwi serves as a good reminder that the rest of the world has a long way to go to reach the market penetration of electronic payment methods that we've seen domestically. If Qiwi can keep expanding, then it could become an important player in the global payments market.
Nuverra gained 8%. The company has been under pressure ever since it reported a massive loss due to onetime charges related to asset writedowns and goodwill impairment, yet Nuverra still has a huge potential market in helping hydraulic-fracturing clients manage the enormous amounts of water necessary to unlock the oil and gas in shale formations. With key partnerships with companies like Halliburton, Nuverra could turn the tide and become profitable again in the near future.
