Why Regions Financial Corp (RF), Sonic Corporation (SONC) and Fitbit Inc (FIT) Are 3 of Today’s Best Stocks

U.S. stocks were weak again on Tuesday, as investors took note of a great many earnings reports and more data on the housing front.

stock market todayIBM reported earnings that beat the street, but had a big miss on revenues, sinking IBM stock more than 5% to lows last seen in 2010. Biotech stocks were once again showing weakness.

Weight Watchers International, Inc. (NYSE:WTW) surged higher for the second consecutive day, gaining 31% on 67.2 million shares traded, as the Oprah effect continues to drive investors back into that beaten-down issue.

Adding another positive to the day were the September housing starts, which hit a reported 1.206 million units, well above economists’ forecasts for 1.150. Growth in multi-family rental units, rather than single-family homes has been the recent catalyst for the solid numbers.

The Dow Jones Industrial Average and S&P 500 lost 0.1%, while the Nasdaq dropped 0.5%. Sectors were mixed, with telecommunications and utilities ahead of the others.

Aside from Weight Watchers’ continued rise, Regions Financial Corp (NYSE:RF), Sonic Corporation  (NASDAQ:SONC) and Fitbit Inc (NYSE:FIT) all delivered solid performances on a middling day for the broader market.

Regions Financial Corp (RF)

RF stock was trending 3% higher today, despite missing estimates on third-quarter earnings of 19 cents per share. The street was looking for 20 cents per share. Regions cited “higher expenses” for the lower-than-expected EPS.

In addition, Regions’ revenue of $1.33 billion over the quarter was also shy of the $1.35 billion the Zachs consensus was expecting, but ahead of the $1.31 billion the Capital IQ Consensus forecast. Revenue was up 1.1% from a year ago.

RF stock has traded in a range between $8.75 and $10.75 for the past two years. It has lagged far behind other bank stocks such as Wells Fargo & Co (NYSE:WFC) and Citgroup Inc (NYSE:C) during that time.

Sonic Corporation (SONC)

Sonic Corporation served up a tasty fourth-quarter earnings report today, turning in 43 cents per share on revenue of $175.3 million. The EPS was a penny above analysts’ estimates, and the revenue was right in line with expectations.

In addition, SONC raised its previous guidance for fiscal 2016 from a range of 14%-18%, to 16%-20%. That news made the street very happy.

SONC stock rose more than 7% on the day on four times normal volume.

Fitbit Inc (FIT)

FIT stock pushed 3% higher today after announcing that the company has signed up more than 20 new enterprise customers for FIT’s corporate wellness programs over the past four months.

Some of the companies who signed up for the programs are Barclays PLC (ADR) (NYSE:BCS), Godaddy Inc (NYSE:GDDY), and universities such as Emory, Gonzaga, and Boston College.

One month ago, Fitbit announced an affiliation with Target Corporation (NYSE:TGT), in which TGT will make make Fitbit devices available either free or with a subsidy to more than 330,000 employees.

FIT stock fell from $50 to $30 between August and September, but has since fought back, and pushed over the 50-day moving average today.

As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.

More From InvestorPlace

Article printed from InvestorPlace Media, https://investorplace.com/2015/10/regions-financial-corp-rf-sonic-corporation-sonc-fitbit-inc-fit-3-todays-best-stocks/.

©2022 InvestorPlace Media, LLC