3rdPartyFeeds

Why Square, Overstock.com, and Lindsay Jumped Today

Earnings will play an increasingly important role in defining the direction of the overall market. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tuesday was a mixed day on Wall Street, with major benchmarks moving in opposite directions as market participants tried to reconcile contradictory readings on prospects for the economy and for the broader stock market's performance for the remainder of the year. Merger and acquisition activity in the tech sector helped lift the Nasdaq Composite, but the Dow lost a modest amount of ground. Still, some stocks posted solid gains on good news. Square (NYSE: SQ), Overstock.com (NASDAQ: OSTK), and Lindsay (NYSE: LNN) were among the top performers. Here’s why they did so well.” data-reactid=”11″>Tuesday was a mixed day on Wall Street, with major benchmarks moving in opposite directions as market participants tried to reconcile contradictory readings on prospects for the economy and for the broader stock market’s performance for the remainder of the year. Merger and acquisition activity in the tech sector helped lift the Nasdaq Composite, but the Dow lost a modest amount of ground. Still, some stocks posted solid gains on good news. Square (NYSE: SQ), Overstock.com (NASDAQ: OSTK), and Lindsay (NYSE: LNN) were among the top performers. Here’s why they did so well.

Square gets a vote of confidence

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shares of Square rose 6% after the payment processing specialist got favorable comments from a stock analyst company. Raymond James upgraded Square from underperform to market perform, arguing that most of the negatives that the company had predicted six months ago have already come to pass, holding the stock back from sharing in the broader market's gains. Raymond James doesn't necessarily think that the company is a sure winner, but analysts believe that with the Square Card debit card starting to gain acceptance, the potential rewards are more in line with risks for the business going forward. Investors should get a sense of whether Raymond James is right when Square reports earnings in early August.” data-reactid=”13″>Shares of Square rose 6% after the payment processing specialist got favorable comments from a stock analyst company. Raymond James upgraded Square from underperform to market perform, arguing that most of the negatives that the company had predicted six months ago have already come to pass, holding the stock back from sharing in the broader market’s gains. Raymond James doesn’t necessarily think that the company is a sure winner, but analysts believe that with the Square Card debit card starting to gain acceptance, the potential rewards are more in line with risks for the business going forward. Investors should get a sense of whether Raymond James is right when Square reports earnings in early August.

Square logo with word and concentric square icon.

Image source: Square.

Overstock gets into the movie business

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Overstock.com's share price rose 3% after the e-commerce retail specialist's cryptocurrency unit, tZERO, said that it will work to develop a token in connection with a major motion picture release. Atari: Fistful of Quarters will use what tZERO is calling the Bushnell token, named after Atari founder Nolan Bushnell. Token owners will receive shares of movie earnings and also play a role in the development of the film by voting on the movie trailer and choosing the cast of the film. Overstock’s shares have also moved in line with the price of bitcoin and other major crypto tokens, and a rise there also likely provided support for the stock price.” data-reactid=”27″>Overstock.com’s share price rose 3% after the e-commerce retail specialist’s cryptocurrency unit, tZERO, said that it will work to develop a token in connection with a major motion picture release. Atari: Fistful of Quarters will use what tZERO is calling the Bushnell token, named after Atari founder Nolan Bushnell. Token owners will receive shares of movie earnings and also play a role in the development of the film by voting on the movie trailer and choosing the cast of the film. Overstock’s shares have also moved in line with the price of bitcoin and other major crypto tokens, and a rise there also likely provided support for the stock price.

Lindsay gains ground despite big challenges

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Finally, shares of Lindsay jumped 12%. The irrigation equipment and infrastructure specialist reported that revenue plunged 29% during its fiscal third quarter, with earnings falling by nearly 70% even after taking into account one-time charges associated with the company’s latest strategic initiatives. CEO Tim Hassinger said that trade concerns and low commodity prices held back its results, and Lindsay also saw sales of its Road Zipper barrier systems fall after a particularly strong quarter last year. Yet even with flooding across much of the Corn Belt, Lindsay believes that reduced supplies from delayed planting will be a long-term positive for the company, and it’s hopeful that its strategic efforts will work out well for shareholders.” data-reactid=”29″>Finally, shares of Lindsay jumped 12%. The irrigation equipment and infrastructure specialist reported that revenue plunged 29% during its fiscal third quarter, with earnings falling by nearly 70% even after taking into account one-time charges associated with the company’s latest strategic initiatives. CEO Tim Hassinger said that trade concerns and low commodity prices held back its results, and Lindsay also saw sales of its Road Zipper barrier systems fall after a particularly strong quarter last year. Yet even with flooding across much of the Corn Belt, Lindsay believes that reduced supplies from delayed planting will be a long-term positive for the company, and it’s hopeful that its strategic efforts will work out well for shareholders.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" More From The Motley Fool ” data-reactid=”30″> More From The Motley Fool

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Square. The Motley Fool has a disclosure policy.” data-reactid=”38″>Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Square. The Motley Fool has a disclosure policy.

Read More

Add Comment

Click here to post a comment