What a difference a day makes. One day after the major indices rebounded off their near 300-point loss, they were once again trounced. Strength in the dollar and another drop by more than 3% in oil were targeted as reasons for the weakness in stocks.
The Dow Jones Industrial Average sank 332 points, or nearly 1.9%, while the S&P 500 and the Nasdaq Composite dropped 1.7%. None of the major sectors were above water today, and several like basic materials, telecommunications and energy really got hammered.
However, among individual stocks there are always positives, even on a bad day. For example, Urban Outfitters, Inc. (NASDAQ:URBN), SuperValu Inc. (NYSE:SVU) and Credit Suisse Group AG (ADR) (NYSE:CS) showed real strength in the face of adversity, and are thus are three of today’s best stocks.
Urban Outfitters, Inc. (URBN)
A better-than-expected fourth-quarter earnings report sent trendy apparel chain Urban Outfitters to an 18-month high today. URBN blasted up more than 11% after posting earnings per share of 60 cents, beating the Street view by 2 cents per share. Sales were up 12% to $1 billion, a tad higher than analysts were expecting.
In addition, Janney Montgomery Scott LLC lifted its rating on URBN from neutral to buy, and raised the price target for URBN stock from $37 to $48. So the future is definitely bright for this clothing retailer.
SuperValu Inc. (SVU)
SVU stock got a lift today with an upgrade from Deutsche Bank, raising its rating from “hold” to “buy,” and the price target from $8.50 to $13. Deutsch wrote:
“We believe fiscal years 2015 and 2016 consensus estimates are too low, valuation is attractive with a favorable risk/reward and we see several potential positive catalysts.”
Including today’s gain of 5.7%, SVU stock is up 33% since October.
Credit Suisse Group AG (ADR) (CS)
The naming of a new CEO sent shares of CS stock soaring 6.7% higher today. CEO Brady Dougan is leaving after eight years at Credit Suisse and will be replaced in June by Tidjane Thiam, the current CEO of Prudential Public Limited Company (ADR) (NYSE:PUK).
It’s been a lackluster year for CS stock, so investors were cheering the news of a change at the helm for the Swiss bank. Matt Spick, an analyst with Deutsche Bank noted, “With new management comes the potential for a new strategy.”
Spick was looking for more of an emphasis on wealth management, a new focus on emerging markets and a further reduction in the investment banking portion of CS.
Prior to today’s action, CS stock had been off 16% since August.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
