U.S. markets struggled today again, as energy prices fell again this morning, hitting a seven-year low. Even a mid-morning rally in energy that brought Crude and Brent oil back above break even failed to rally stocks.
Also weighing on stocks was data from China that showed a fifth consecutive month of declining exports, and 13 consecutive months of declining imports. This news has traders on edge about negative global growth going forward. On the bright side, the decline in Chinese imports has slowed, but that wasn’t enough to allay investors’ concerns.
The Dow Jones Industrial Average lost 0.9%, while the S&P 500 was off by 0.7%. The Nasdaq was a bit stronger, finishing nearly flat. All sectors except for healthcare were on the negative side today.
But three stocks that bucked the trend today were Fairchild Semiconductor Intl Inc (NASDAQ:FCS), FireEye Inc (NASDAQ:FEYE) and Children’s Place Inc (NASDAQ:PLCE). All three were up solidly on strong volume, and thus are three of today’s best stocks.
Fairchild Semiconductor Intl Inc (FCS)
FCS stock bolted up more than 5% today after the San Jose, CA semiconductor company reported that it has been approached from an unknown buyer with a takeover offer. However, Bloomberg is reporting that the potential suitor is a group led by China Resources Power Holdings Co. ltd. (HKG:0836) and Hua Capital Management Ltd.
The offer would purchase the company for $21.70 per share in cash, or roughly $2.46 billion, and is now being reviewed by the board of directors to assess its value.
This latest takeover bid comes on the heels of Fairchild agreeing last month to be purchased by ON Semiconductor Corp (NASDAQ:ON) for $20 per share in cash. Shares of ON were off 7% today on this latest news.
FireEye Inc (FEYE)
FEYE stock rose nearly 7% higher today after an analyst upgrade from Walter Pritchard of Citigroup Inc (NYSE:C), who said shares of the security technology vendor are too cheap to ignore, and the company’s valuation has a favorable risk-reward. Prictchard raised his rating from “neutral” to “buy,” and raised his price target from $31 to $35.
FEYE stock traded near $55 per share in June of this year, but has been crushed recently, reaching a low of $19.76 this week. Insider Monkey reports that FEYE stock has seen more buying among hedge funds in the latest quarter.
Children’s Place Inc (PLCE)
Children’s Place stock was the place to be today after the children’s apparel retailer reported third-quarter results of $1.93 per share, beating analysts’ expectations for $1.92 a share. Revenue fell 6.4% to $455.9 million, below the $474.58 million which comprised the street’s view.
The company reaffirmed guidance for fiscal year 2016 for an EPS range of $3.35 to $3.45 per share, and authorized a new $250 million stock buyback program. Despite the revenue miss, the other news was good enough to propel the stock 13% higher on the day.
PLCE is another company whose stock has recently struggled, falling from $64 per share in July to a recent low of $46.74.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
