Some mixed economic data, the further strengthening of the dollar, another 4% slide in oil prices and even some uncertainty regarding the whereabouts of Russia’s President Vladimir Putin shook the U.S. markets today, in what has been a week of alternating up and down days.
The February U.S. Producer Price Index (PPI), which was expected to gain 0.3%, instead had a decline of 0.5%. In addition, the consumer sentiment reading dropped from 95.4% in February to 91.2% this month.
The Dow Jones Industrial Average fell 0.8%, while the S&P 500 slipped 0.6%, and the Nasdaq Composite shed 0.4%. All sectors were in the red today, with basic materials and energy really taking it on the chin.
However, there is a port in every storm, and investing a little “loco” in a crazy market week like this turned out to be a good thing. That’s why El Pollo Loco Holdings Inc (NASDAQ:LOCO), along with Pandora Media Inc (NYSE:P), and Herbalife Ltd. (NYSE:HLF) are three of today’s best stocks.
Pandora Media Inc (P)
Pandora stock, which was up almost 4% on Thursday, tacked on another 7.2% today on heavy volume of 19.6 million shares. Yesterday, Pandora stock received a boost when Rob Sanderson of MKM Partners reiterated a “buy’ rating and a $23 price target. Sanderson noted he was “incrementally bullish” on P stock.
P stock also benefited from an article that cited Pandora as a potential breakout stock at $20. P stock reached $17 in early trading before finishing the day at $16.44.
El Pollo Loco Holdings Inc (LOCO)
You have to be loco not to like LOCO stock after it blasted up nearly 13% today on about volume of 10.1 million shares, far exceeding its average volume. LOCO’s surge came after reporting fourth-quarter 2014 earnings results of 14 cents per share, beating the estimates of 12 cents a share.
Total revenue for the quarter was $90 million, which also beat the estimates of $87 million, and was 18% higher year-over-year. The extra feather in LOCO’s cap was forward EPS guidance of 67 cents to 71 cents for 2015, while the Street view was for 68 cents a share.
Herbalife Ltd. (HLF)
HLF stock got a real boost today, up 8% on a Wall Street Journal report that the FBI and federal prosecutors are interviewing people hired by Pershing Square CEO William Ackman in a probe of possible manipulation of HLF stock.
According to the newspaper, prosecutors are investigating allegations that false statements were made to regulators about HLF’s business model in an attempt to trigger investigations into its stock price.
Ackman has publicly claimed that Herbalife is a pyramid scheme that targets the poor. Ackman has made it known that he is shorting HLF stock, and he believes it could go to zero. HLF stock did drop from $52 to $30 recently, but has since bounced back to today’s closing price of $35.96.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
