Why Delta Air Lines, Smith and Wesson, and La Quinta are 3 of Today’s Best Stocks

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U.S. stocks were mixed on a volatile day to begin the week after the Martin Luther King holiday, as Johnson & Johnson (JNJ) reported sluggish sales and forward guidance, while Morgan Stanley (MS) missed on earnings estimates. In addition, Crude oil slid over 4% again, to finish at $46.39, and the National Home Builders (NAHB) Housing Market Index dropped from December’s 58 reading to 57 in January.

Both the Dow Jones Industrial Average and S&P 500 finished basically flat, while the Nasdaq rose 0.44%. It was a tough comeback as the Dow was down as much as 164 points just before the lunch hour.

Not all stocks struggled, however. The technology and telecommunication sectors fared well, while individual issues such as Delta Air Lines, Inc. (DAL), Smith and Wesson Holding Corp (SWHC), and La Quinta Holdings Inc (LQ) were quite strong on the day.

Delta Air Lines, Inc. (DAL)

DAL stock is flying high after their fourth-quarter earnings climbed 20% to 78 cents per share, a penny above expectations. Revenue was up 6.3% to $9.6 billion, above the street’s view of $9.5 billion. In addition to lower fuel costs, CEO Richard Anderson said the company is hoping to save over $2 billion in fuel costs over 2014, and that seating capacity has been growing by 3%. DAL stock rose more than 7 % today and has come back from the dead over the last 27 months, climbing from $8.50 to approach $50.

Smith and Wesson Holding Corp (SWHC)

Bad news is often good news for certain companies, and gun sales often rise when there are lots of reports of violence or terrorist threats in the news. SWHC stock shot up more than 16% after reporting that “recent positive trends” among consumers may well lead to higher profits from the company’s gun sales. They are predicting sales around $125 million in the quarter ending January 31, besting analysts’ expectations for less than $118 million.

SWHC is also the frontrunner in bidding among companies to become the new handgun manufacturer for the U.S. Army, a deal that could be worth about $500 million. FBI gun checks totaled 2.3 million in December, rising 300,000 from November and up from 1.8 million a year ago.

La Quinta Holdings Inc (LQ)

LQ stock was 3% higher today following a Zacks Investment Research mention on Friday. Zacks said it is positive about the hotel industry in particular, due to recent increases in occupancy rates and Revenue Per Available Room (RevPAR). Consumers and businesses are traveling more as the economy improves and gas prices decline. The hotel industry, and LQ stock in particular, has lagged in recent months, so it remains to be seen if recent upgrades by Zacks and others will have a positive effect.

As of this writing, Ethan Roberts did not hold any positions in the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/01/delta-air-lines-inc-dal-smith-wesson-holding-corp-swhc-la-quinta-holdings-inc-lq-3-todays-best-stocks/.

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