U.S. markets were trounced again today, with the major indices falling heavily throughout the day. Investors were once again concerned with the Chinese market — which fell 4.3% to touch lows set back in July — and are still wary of how the Fed will act in September.
In addition, Crude Oil fell another 3%, and broke below $40 per barrel for the first time since 2009, before finishing at $40.45. Traders are worried that crude oil could collapse back to the $30 level.
The Dow Jones Industrial Average tumbled 3.1%, losing 500 points, while the S&P 500, which fell below 2000, was also off the same amount. The Nasdaq was even worse, finishing down 3.5%. All sectors were hammered today, especially biotech and energy. Former market leader Apple Inc (NASDAQ:AAPL) was down more than 6% and has now fallen 19% in the past month.
But a few big names were higher on the day. Hewlett-Packard Company (NASDAQ:HPQ), Brocade Communications Systems, Inc. (NASDAQ:BRCD) and Caesars Entertainment Corp (NYSE:CZR) bucked the trend to be 3 of Today’s Best Stocks. How did they do it? Let’s take a look.
Hewlett-Packard Company (HPQ)
HPQ was a stock on a roller coaster ride today, after beating analysts expectations on earnings, but guiding lower for the rest of the year and having its price target cut.
On Thursday, HPQ reported third quarter earnings of 88 cents per share on revenue of $25.3 million, beating the street’s estimates for 85 cents per share. But HPQ then reduced its EPS expectations for the remainder of 2015 to 92-98 cents per share, which should indicate lower fourth-quarter results. The street has been expecting $1 per share.
HPQ stock fell lower overnight, but CEO Meg Whitman went on CNBC to reassure investors that HPQ’s personal computer and enterprise server business were showing real strength. HPQ stock surged by as much as 7% early on, but was caught in the general market debacle in the afternoon, ultimately finishing up only by 0.5%
Also today, BMO Capital cut its price target on HPQ stock from $35 to $33.
Brocade Communications Systems, Inc. (BRCD)
It was a double dose of good news for BRCD shareholders today that sent BRCD stock jumping 8%. Brocade reported third-quarter earnings of 27 cents per share on revenue totaling $551.8 million. Both were ahead of analysts’ estimates for 22 cents a share on $550.4 million in revenue.
As if that wasn’t enough, BRCD then received analyst upgrades from Goldman Sachs from “sell” to “neutral,” with a $12 price target, and upgraded from “hold” to “buy” thanks to Summit Research, with a raised price target from $11 to $14.
Caesars Entertainment Corp (CZR)
CZR stock soared 17% today after creditors of CZR’s bankrupt operating unit said that, in exchange for supporting a plan to restructure its organization, they want a stake in the parent company. The notice was posted on a bondholder’s website late on Thursday.
The proposal was rejected by Caesars’ management. Caesars and private-equity backer, Apollo Global Management LLC (NYSE:APO) have been trying to get creditors to back a company restructuring plan and to drop litigation against the parent company.
CZR stock dropped from $12 to $5 recently, but has since bounced back, closing at $8.02 today.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
