Why Western Digital Corp (WDC), Chipotle Mexican Grill, Inc. (CMG) and Delta Air Lines, Inc. (DAL) Are 3 of Today’s Best Stocks

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U.S. stocks backed away from record highs Wednesday despite Apple Inc.’s (NASDAQ:AAPL) best efforts at prompting a late run. Mixed economic data sent the dollar higher and stocks lower. Traders continued reducing bets that the Federal Reserve is nearing its first interest rate hike of 2016

Why Western Digital Corp (WDC), Chipotle Mexican Grill, Inc. (CMG) and Delta Air Lines, Inc. (DAL) Are 3 of Today's Best Stocks

The S&P 500 fell 0.02% while the Dow Jones Industrial Average lost 0.07%. The Nasdaq Composite was a leader with a gain of 0.15%.

On a mixed day for U.S. stocks, Chipotle Mexican Grill, Inc. (NYSE:CMG), Delta Air Lines, Inc. (NYSE:DAL) and Western Digital Corp (NASDAQ:WDC) delivered good news for investors.

Western Digital Corp (WDC)

Shares of data storage provider Western Digital surged 12% on more than triple the average daily volume after the company issued bullish fiscal first-quarter guidance.

California-based WDC forecast fiscal first-quarter revenue of $4.45 billion to $4.55 billion, up from earlier guidance of $4.4 billion to $4.5 billion. WDC expects to earn $1 to $1.05 per share for the quarter, well above previous guidance of 85 cents to 90 cents.

Wednesday’s performance for Western Digital is the stock’s best intraday showing in nearly a year, according to CNBC. However, even after the day’s robust gains, shares still are off more than 11% in 2016.

Chipotle Mexican Grill, Inc. (CMG)

CMG shares jumped nearly 6% on reports that Bill Ackman’s Pershing Square hedge fund took a 9.9% stake in Chipotle.

Shares of the fast-casual burrito purveyor were off 14% year-to-date through Tuesday as the company continued to suffer fallout from 2015’s E. coli outbreak. CMG is in the midst of a three-quarter stretch in which same-store sales have declined.

The hits keep on coming, too. One of the company’s top executives was recently arrested in New York on cocaine trafficking charges.

Many investors believe Ackman will push for change on Chipotle’s board.

Delta Air Lines, Inc. (DAL)

Delta Air Lines, Inc., the second-largest U.S. carrier as measured by traffic, soared nearly 6% on heavy volume as investors seemed satisfied with new guidance from the Atlanta-based company in the face of a rough August. DAL said it expects pre-tax income to drop $150 million for the current quarter due to a power outage last month that forced 2,300 flights to be canceled.

Delta “now expects an operating profit margin of 18 percent to 19 percent in the third quarter, compared with a prior outlook of 19 percent to 21 percent,” according to Reuters.

DAL also said it has not canceled a flight in the past 10 days and that it expects capacity growth to slow to 2.5% in the fourth quarter.

As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities.

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Todd Shriber has been an InvestorPlace contributor since 2014.


Article printed from InvestorPlace Media, https://investorplace.com/2016/09/why-western-digital-corp-wdc-chipotle-mexican-grill-inc-cmg-and-delta-air-lines-inc-dal-are-3-of-todays-best-stocks/.

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