Why Cisco Systems, Inc. (CSCO), Yahoo! Inc. (YHOO) and Advanced Auto Parts, Inc. (AAP) Are 3 of Today’s Best Stocks

Advertisement

U.S. markets were modestly higher Thursday, even as crude oil continued its decline to a six-year low, finishing down more than a percent to just over $42. Concerns over the devaluation of the Yuan, however, were slightly attenuated, and traders’ spirits were buoyed by a welcome retail report.

Why Cisco Systems, Inc. (CSCO), Yahoo! Inc. (YHOO) and Advanced Auto Parts, Inc. (AAP) Are 3 of Today's Best StocksRetail sales were 0.6% higher for July than the previous month, which was slightly above the expectation. The Labor Department reported weekly jobless claims of 274,000; up 5,000 from the previous month, and ahead of the estimates by the Street for 270,000. U.S. business inventories for June were also higher by by 0.8%, ahead of the estimate for 0.2%.

The Dow Jones Industrial Average, S&P 500 Index, and Nasdaq Composite all finished flat on the day. Sectors were mostly lower Thursday, with Cyclical Consumer Goods coming out on top.

Solid earnings and an analyst upgrade lifted stocks such as Cisco Systems, Inc. (NASDAQ:CSCO), Yahoo! Inc. (NASDAQ:YHOO) and Advanced Auto Parts, Inc. (NYSE:AAP) to three of today’s best stocks.

Cisco Systems, Inc. (CSCO)

Cisco stock rose more than 3% after reporting fiscal fourth quarter 2015 earnings of 59 cents a share, ahead of the 56 cents a share estimated by the Street. Revenue of $12.84 billion was up almost 4% from a year ago, and well ahead of the $12.56 billion analysts were expecting. CSCO’s recent emphasis on software seems to be paying off.

CSCO also announced first quarter 2016 guidance that was in line with what the Street was expecting. CSCO stock has basically traded sideways for several months, but Thursday’s action pushed the stock above recent resistance at $28.75.

Yahoo! Inc. (YHOO)

YHOO stock, which has really struggled recently, got a lift today from an analyst at Sanford C. Bernstein & Co LLC, which raised its rating on YHOO stock from “market perform” to “outperform”, along with a price target of $52. YHOO finished over 4% higher on the day.

Bernstein regards YHOO stock as sufficiently beaten down, with limited further downside risk and more potential to appreciate from current levels. Bernstein is also positive on Alibaba Group Holding Ltd (NYSE:BABA) — Yahoo has a 15% stake in the online Chinese commerce company, and should benefit from any appreciation that it undergoes.

YHOO stock dropped from $46 in April to a recent price near $35.

Advanced Auto Parts, Inc. (AAP)

AAP stock got a boost today after reporting second-quarter results that beat earnings, but missed revenue. The auto-parts retailer reported earnings of $2.27 on revenue of $2.37 billion, two cents ahead of analyst earnings estimates, but shy of the $2.38 billion in revenue the Street was expecting.

Advanced auto parts has also announced they will be closing 50 stores before the end of 2015 in an effort to improve its bottom line in 2016.

AAP stock was up 9% on the news.

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/2015/08/best-stocks-csco-yhoo-aap/.

©2024 InvestorPlace Media, LLC