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Why Manitowoc, Chipotle Mexican Grill, and Wynn Resorts Soared Today

By Dan Caplinger – Jan 31, 2014 at 8:02PM

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The topsy-turvy trend for the stock market continued, with major benchmarks ending on a down note. But Manitowoc jumped 15%, while Chipotle climbed 12%, and Wynn rose 8%. Find out more about what made these stocks soar.

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.

Friday's market moves certainly kept investors on their toes. The S&P 500 quickly plunged to a loss of more than 1% before eventually working its way back to the unchanged level with an hour to go in the session; but it then traded down for the rest of the day. Yet, the wave motion of the market didn't stop Manitowoc (MTW 3.26%), Chipotle Mexican Grill (CMG 4.78%), and Wynn Resorts (WYNN 4.20%) from giving shareholders big gains on positive earnings news.

Manitowoc soared 15% after reporting fourth-quarter results last night that impressed shareholders. Revenue fell 2%, continuing a trend that investors have seen throughout the industrial sector, but the crane-making company managed to boost its adjusted earnings by 74%, thanks to strong gains in margins and cost-cutting measures. One area that did particularly well was Manitowoc's food-service machine business and, given increasing optimism about the future of the construction industry, Manitowoc has room to post further gains both in the current quarter and throughout 2014.

Chipotle gained 12% as its earnings results, and future guidance, held up well with investors' high expectations. Same-store sales of 9.3% boosted revenue by almost 21%, with gains in operating margins helping drive profits higher. The restaurant operator expects to boost its store count by 200 this year, with more modest comps than it had in the fourth quarter, but with the possibility of a price hike at some point in 2014. Results like these are essential for Chipotle to justify its ample valuation.

Wynn Resorts rose 8% after its own earnings report showed substantial growth in its casino business. Overall revenue gained 18%, but as has been the case for years, the gaming giant's Macau-based business drove that growth with 25% gains in its revenue there. With net income almost doubling, the prospects for the future look even better, with its new Cotai Strip casino set to open in Macau in early 2016. Yet even domestically, the casino industry is looking better, as peer Boyd Gaming (BYD 2.12%) also posted solid stock gains on positive earnings news today. Overall, an improving economy is lifting Wynn's prospects, and as long as emerging market economies don't actually start shrinking, Wynn looks well-poised to keep benefiting from growth.

Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Chipotle Mexican Grill. The Motley Fool owns shares of Chipotle Mexican Grill. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Chipotle Mexican Grill Stock Quote
Chipotle Mexican Grill
CMG
$1,626.96 (4.78%) $74.24
Wynn Resorts Stock Quote
Wynn Resorts
WYNN
$83.66 (4.20%) $3.37
Boyd Gaming Stock Quote
Boyd Gaming
BYD
$61.33 (2.12%) $1.27
Manitowoc Stock Quote
Manitowoc
MTW
$9.82 (3.26%) $0.31

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

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