Stocks slumped to end April, but started May on an encouraging note as the S&P 500 added almost 0.8% while the Dow Jones Industrial Average gained 0.66%. The Nasdaq Composite notched one of its most impressive showings in recent weeks, climbing 0.88%.
While there is a still a long way to go, it was a good start to May for stocks, particularly when noting that May is the beginning of the weakest six-month period for equities and that “sell in May and go away” chatter is likely to increase in the coming weeks.
Leading the strong start to May were GNC Holdings Inc (NYSE:GNC), J C Penney Company Inc (NYSE:JCP) and Wynn Resorts, Limited (NASDAQ:WYNN), which stood out as three of today’s best stocks.
GNC Holdings Inc (GNC)
Shares of nutritional supplements retailer GNC Holdings surged 6.8% on more than triple the average daily volume after the company said it is exploring strategic options, which could include a sale.
“One potential buyer could be Vitamin Shoppe Inc., JPMorgan Chase & Co. analyst Christopher Horvers said in a note. The company could also be acquired by a private equity buyer, he said, if GNC added debt to buy back its own stock and go private,” reports Bloomberg.
GNC is conducting a review of the company that “will include a thorough evaluation of the Company’s current operating plan, as well as potential value maximizing alternatives such as accelerated refranchising strategies, capital structure optimization, partnerships and other value-creating collaborations, or a potential sale of the Company,” according to a statement issued by Pittsburgh-based GNC.
J C Penney Company Inc (JCP)
Department store operator J C Penney rose nearly 3.7% on slightly above-average turnover after the stock was on the receiving end of a “Barron’s Bounce.”
The financial news magazine said shares of JCP could rise 50% to 100% over the next three years. Barron’s notes that although JCP and its rivals face a tough environment, Texas-based JCP is regaining some lost market share.
Barron’s also points out that JCP has managed to boost sales while trimming expenses.
Analysts expect JCP to post a fiscal 2017 profit after previously expecting a loss.
Wynn Resorts, Limited (WYNN)
Wynn Resorts, the owner and operator of the Wynn and Encore hotels and casinos in Las Vegas, climbed 6.8 percent on some encouraging revenue data out of Macau.
WYNN and rival gaming companies rose Monday after data showed April gaming revenue in Macau fell a less-than-expected 9.5% to $2.17 billion. Gambling revenue in Macau, the world’s largest gambling mecca and the only Chinese territory where gambling is legal, has slumped every month for nearly two consecutive years.
WYNN is one of the biggest operators in Macau. Shares of WYNN are up 36% year-to-date.
At the time of this writing, Todd Shriber did own any of the aforementioned securities.
