Why Visa Inc (V), Chevron Corporation (CVX) and Pioneer Natural Resources (PXD) Are 3 of Today’s Best Stocks

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U.S. markets rallied again on a quiet day — featuring just a few minor economic reports — that was driven mostly by a boost in energy prices. Crude oil was up nearly 4% after a strike among Brazilian oil workers was said to be curbing production in that area.

Why Visa Inc (V), Chevron Corporation (CVX) and Pioneer Natural Resources (PXD) Are 3 of Today's Best StocksInvestors are looking ahead to speeches from Federal Reserve Chairwoman Janet Yellen and a few other Fed policymakers on Wednesday, as well as the employment report on Friday, for further market direction.

In economic news, U.S. factory orders declined by 1% in September after declining in August, but this was offset by a robust auto sales report for October. Fiat Chrysler Automobiles NV (NYSE:FCAU) in particular said its sales will easily top analysts’ forecasts.

The Dow Jones Industrial Average gained 0.5%, the S&P 500 rose 0.3% and the Nasdaq finished up 0.4%.

Earnings and stronger oil prices put Visa Inc (NYSE:V), Chevron Corporation (NYSE:CVX) and Pioneer Natural Resources (NYSE:PXD) among Tuesday’s best performers. Here’s a quick look at the specifics behind each strong move:

Visa Inc (V)

Tuesday was a busy day for credit card merchant Visa, which was upgraded by a Bank of America analyst a day after V reported earnings and announced a major deal.

Visa’s fiscal fourth-quarter profits of 62 cents per share matched Zacks estimates, as did revenues of $3.6 billion, which were up 11% year-over-year. Visa also announced the authorization of a new $5 billion stock repurchase program.

Visa also said it would buy former subsidiary Visa Europe Ltd for $23.3 billion. Visa will issue $16 billion in debt to fund the deal, which Visa hopes will become accretive to its bottom line by 2017.

BofA’s Kenneth Bruce upped his price target from $78 to $85 and maintained his “buy” rating on V stock. V shares rallied 3.6% in response.

Chevron Corporation (CVX)

A strong day in the oil sector, fueled by the Brazilian oil workers strike, sent CVX shares higher more than 3% today.

Chevron also was the beneficiary of an analyst report, with JPMorgan upping its price target on CVX stock from $86 to $94 while maintaining an “overweight” rating. This came off a promising earnings report and a lowered estimate for capital expenditures in fiscal 2016.

JPMorgan’s target price also was boosted by Credit Suisse a day ago.

CVX stock rose back above its 200-day moving average today for the first time since September 2014.

Pioneer Natural Resources (PXD)

Pioneer shares rose more than 6% today after the natural gas and oil producer reported a third-quarter loss of a penny per share — far worse than the $1.35 per share earned in the year-ago quarter, but far better than the Zacks estimate for a 7-cent loss.

Revenue of of $883 million was way ahead of estimates for $767 million. Wall Street really seems to have gotten this one wrong, as the company’s production rose 7% to exceed the high end of its previous guidance by 1,000 barrels of oil per day.

PXD’s surge put it above its 200-day MA for the first time in seven months. PXD had fallen from $180 a share to a low around $105, but has since recaptured nearly half of that loss.

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

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Article printed from InvestorPlace Media, https://investorplace.com/2015/11/visa-inc-v-chevron-corporation-cvx-pioneer-natural-resources-pxd-3-todays-best-stocks/.

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