A sharp rebound in oil prices following Monday’s plunge helped the energy and materials sectors lead stocks slightly higher Tuesday, with the S&P 500 advancing nearly a third of a percent. The Dow Jones Industrial Average added 0.27% while the Nasdaq Composite dropped 0.4%.
Labor strikes at oil refineries in Kuwait boosted oil prices while a weaker dollar lifted other commodities, such as silver. The white metal touched its highest levels in 10 months today. Not surprisingly, state-controlled oil companies lifted broader gauges of emerging markets equities.
But it was guidance and analyst upgrades that helped Johnson & Johnson (NYSE:JNJ), Panera Bread Co (NASDAQ:PNRA) and Spirit Airlines Incorporated (NASDAQ:SAVE) become three of today’s best stocks.
Johnson & Johnson (JNJ)
Johnson & Johnson rose almost 1.6% and touched an all-time high earlier Tuesday after the member of the Dow Jones Industrial Average boosted its 2016 earnings and sales guidance. New Jersey-based JNJ raised its EPS guidance by 10 cents to $6.53 to $6.68 per share. JNJ increased its revenue guidance by $400 million, from $71.2 billion to $71.9 billion.
For the first quarter, JNJ earned $1.54 a share on sales of $17.48 billion. According to the Associated Press, JNJ said it plans to launch at least nine new products by 2019 that could each account for $1 billion or more in annual sales.
JNJ said it could be shopping for deals if the price is right. JNJ has $17 billion in cash and cash equivalents on hand, according to the AP.
Panera Bread Co (PNRA)
Shares of Panera Bread, the operator of fast-casual restaurants, climbed 2.8% after the stock earned two upgrades from analysts. Jefferies upgraded PNRA to “buy” from “hold.” Jefferies also boosted its price target on PNRA to $245 from $195, implying significant upside from Tuesday’s close.
The bank expects PNRA’s first-quarter same-store sales to rise. PNRA delivers its first-quarter results on April 26.
KeyBanc was the other bank to upgrade PNRA today.
Spirit Airlines Incorporated (SAVE)
Discount carrier Spirit Airlines jumped 5.8% following bullish first-quarter guidance. SAVE updated its first-quarter margin guidance to 21.5% from 19% to 20.5%. SAVE also said it expects cost per available seat mile (CASM) to fall 2%, compared with previous guidance calling for a decline of 2.5% to 3.5%.
SAVE “cited an accrual of a one-time ratification incentive payment of $8.4 million. Absent the accrual, the company’s adjusted CASM excluding fuel would have been lower by around 4.5 percent,” according to Benzinga.
Shares of SAVE are up 33% year-to-date.
At the time of this writing, Todd Shriber owned shares of JNJ.
