3 Stocks to Watch on Thursday: Mobileye NV (MBLY), Care.com Inc (CRCM) and Darden Restaurants, Inc. (DRI)

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Brexit? What Brexit? Markets surged forward again on Wednesday, with the S&P 500 making a move on the psychological 2,100 area and technical resistance at 2,070, finishing up 1.7% on the day. The Dow Jones Industrial Average was up similarly, finishing 1.6% higher.

Mobileye NV (MBLY), Care.com Inc (CRCM) and Darden Restaurants, Inc. (DRI): 3 Stocks to Watch on ThursdayEarly on, it looks like we could see another push higher from the broader indices, albeit maybe at a slower clip. But the real fireworks will come from Mobileye NV (NYSE:MBLY), Care.com Inc (NYSE:CRCM), which are roaring in early Thursday trading. Playing Debbie Downer is Darden Restaurants, Inc. (NYSE:DRI), which is seeing some post-earnings weakness.

Here’s what you need to know across all three stocks:

Mobileye NV (MBLY)

MBLY shares are cruising Thursday morning amid a report that the driver assistance company is joining forces with Intel Corporation (NASDAQ:INTC) and BMW to develop self-driving cars.

According to Reuters, analysts say a Friday meeting is planned that will include Intel CEO Brian Krzanich, Mobileye Chairman and CTO Amnon Shashua and BMW CEO Harald Krueger.

Mobileye’s technologies include systems that warn you when you’re nearing an object, detect pedestrians and alerts you of other dangers. The company’s artificial vision technology uses cameras to monitor and adjust for anything from speed limits to collisions.

As a note, Mobileye also currently has a partnership with another chipmaker — STMicroelectronics NV (ADR) (NYSE:STM) — that recently was extended to help develop “autonomous driving features.”

MBLY shares are surging 9% in early Thursday trading, which would take shares to highs last seen in November 2015.

Care.com Inc (CRCM)

CRCM shares will be the belle of Thursday’s ball if premarket action holds up, with the stock surging amid news that Alphabet Inc’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Capital investment arm is taking a large stake in the company.

Google Capital said yesterday evening that it has taken a $46.35 million stake in CRCM, which comes out to about 17% of the company’s market cap as of Wednesday’s closing price. Google Capital will receive newly authorized preferred stock at an initial conversion price of $10.50 per share, which is a “21% premium to the 30-day volume-weighted average trading price ended June 27, 2016, of $8.68,” according to a Care.com press release. Those preferred shares will carry a 5.5% dividend.

CRCM used some of the funds raised by the investment to buy back 3.7 million shares from Matrix Partners at $8.25 per share, for a total of $30.5 million.

CRCM stock looks to open Thursday’s trading up more than 45% to reach levels last seen in 2014.

Darden Restaurants, Inc. (DRI)

DRI looks to be today’s loser of the trio, with shares of the restaurant chain owner off a few percent thanks to a fiscal-fourth-quarter revenue miss and weak outlook for its Q1.

Darden grew Q4 earnings 33% to $1.09 per share, beating out Thomson Reuters I/B/E/S-polled analyst views of $1.08 per share. Meanwhile, revenues of $1.79 billion were down nearly 5% and missed Street expectations of $1.79 billion. That weakness came despite a 2.6% improvement in comparable-store sales that saw positive results across every one of its seven chains.

Also holding DRI shares back was fiscal 2017 estimates, which included comps improvement of 1% to 2% and 24 to 28 new restaurant openings, but also an earnings range of $3.80 to $3.90 per share that missed expectations of $3.99 per share.

DRI stock was off 5% in Thursday’s premarket action.

Kyle Woodley is the Managing Editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @KyleWoodley.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/06/mobileye-nv-mbly-care-com-inc-crcm-and-darden-restaurants-inc-dri-3-stocks-to-watch-on-thursday/.

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