Why Buffalo Wild Wings (BWLD), Citrix Systems, Inc. (CTXS) and SUPERVALU INC. (SVU) Are 3 of Today’s Best Stocks

Advertisement

U.S. markets clung to their earlier gains today after the Federal Reserve left rates unchanged and remained vague as to what may happen in their next meeting, scheduled for September.

Why Buffalo Wild Wings (BWLD), Citrix Systems, Inc. (CTXS) and SUPERVALU INC. (SVU) Are 3 of Today's Best StocksThe Fed continues to state that the economy is moderately improving in jobs and housing while keeping inflation in check. They did, however, add they would like to see further improvement in the labor market before tightening rates.

Contradicting the Fed’s view was the report by the National Association of Realtors that pending home sales were down 1.8% in June from May. Economists expected a 1% rise.

This comes a week after the Census Bureau reported that new home sales dropped to an annualized 482,000, below the estimates. Perhaps the Fed was looking at the rise in existing home sales only.

The Dow Jones Industrial Average gained 0.7%, as did the S&P 500. The Nasdaq was higher, but only by 0.4%. Sectors were strong across the board, with energy and commodities again trading higher.

Several stocks reported earnings, among them Buffalo Wild Wings (NASDAQ:BWLD), Citrix Systems, Inc. (NASDAQ:CTXS) and SUPERVALU INC. (NYSE:SVU), all of which received a boost.

Here’s how it happened:

Buffalo Wild Wings (BWLD)

BWLD stock investors got an unexpected tasty treat after BWLD posted second-quarter earnings and revenue missing the Street estimates on both counts, but still surged over 10% higher on a statement that the company intends to raise prices going forward, and will be completing its acquisition of 41 franchised restaurants by the end of August.

In addition, although the price of chicken rose 26% year-over-year, it was far less than the 41% increase during Q1 of 2015.

For the record, BWLD reported earnings of $1.12 per share on revenue of $426.4 million. The Street was looking for $1.26 on revenue of $430.0 million.

Citrix Systems, Inc. (CTXS)

CTXS stock surged 8% today after surpassing analysts estimates for second-quarter earnings, and announcing they had cinched a deal with Elliott Management, an activist investor firm that owns 7.5% of the company.

Citrix reported earnings of a dollar per share, which was ahead of the Street’s view for 82 cents. Revenue of $796.76 million also bested the consensus of $790.37 million.

In addition, Citrix announced the retirement of CEO Mark Templeton, who will stay on until his successor is in place. Further, CTXS said Jesse Cohn of Elliot Management Corporation will join the board of directors, to replace Asiff Hirji, who is resigning immediately.

SUPERVALU INC. (SVU)

SVU stock jumped more than 7% today after the wholesale grocery firm reported first quarter earnings of 23 cents a share on revenue of $5.41 billion, beating the analysts’ estimates of 20 cents a share on only $5.39 billion. Also pushing SVU stock higher was an announced spin-off of their Save-A-Lot supermarket subsidiary.

SVU also benefited from an analyst upgrade from Morgan Stanley (NYSE:MS) from “underweight” to “equal weight”. Morgan Stanley maintained the price target at $9.00, which is curious since the stock finished the day at $8.75.

Surely MS must have known that the stock would jump again, after gaining more than 10% yesterday, putting it very close to the target price.

As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2015/07/best-stocks-bwld-ctxs-svu/.

©2024 InvestorPlace Media, LLC