Stocks

Simpler Stocks: Friday Movers

Despite broad declines in equities on Friday, stocks capped the month with overall gains. February showed gains of 6% for the month. But for the day, US economic data led the action, as economic growth slowed more than had been estimated.

Solar continues to shine. Fresh on the heels of the news that SUNE and FSLR would be developing a yieldco, SUNE said that it expects to see its installations double this year. SUNE also said it will be selling some of its developments – and the US market remains strong. The company also unveiled a renewable energy generator and said it looks to provide electricity to 20 million people (including those in remote areas) by 2020.

3D Systems Corp. (Ticker: DDD)

Though much ink has been spilled predicting the slowdown in 3-D printing, DDD’s results earlier this week came in a bit short. Yet the company signaled its “investment phase” is lifting, which should help boost margins. Indeed that is reflected in estimates going forward, which look for 30% growth – and more – for both the top and bottom lines in 2015.

Ross Stores saw a nice 6% pop at the end of the prior trading week as apparel proves resilient and the company topped estimates, with the retailer posting $1.20 in net income per share, nine cents above Street expectations. Revenues were up nearly 11%. More important was guidance, which at a range of $4.60 to $4.80 a share, handily topped the $4.33 consensus. Dividend hikes, such as the most recent one boosting the payout by 18%, don’t exactly hurt either.

This medical device maker, focused on treating epilepsy and depression via implantable technology, hit record highs last week after stating it would merge with Italy’s Sorin – and after the company reported earnings that topped the Street by two pennies. The combined company will have more international presence, of course, and the merged company will begin operations within the next two quarters. The new entity will offer one share for every one share of CYBX owned. Even with the recent 25% pop in the stock, the beta lies below 1x, and the stock is comfortably above the 50- and 200-day moving averages.

Seadrill results posted Friday morning beat estimates handily, with earnings from continuing operations of $0.78 a share besting the Street’s $0.60 expectation. Post earnings, shares crossed the 50-day moving average and that may give the stock some support. The 34% dividend yield may belie real skepticism over sustainability. But other valuation metrics, such as 4x forward estimates and 0.6x book value multiple, seem attractive.

The motel operator released results last week that showed profit of $0.08 a share, besting the Street estimate by three cents. Revenue per available room propelled the company to a revenue beat, and was up 8% year-over-year, tied in part to pricing increases. The stock trades at a forward PE of 27x for the year ahead, but estimates have that growth rate at 40%.