Why Alibaba Group Holding Ltd (BABA), Yelp Inc (YELP) and Norwegian Cruise Line Holdings Ltd (NCLH) are 3 of Today’s Best Stocks

Advertisement

U.S. markets rebounded today after two days of decline, as traders got a bit more bullish before tomorrow’s jobs report. The Labor Department’s weekly unemployment claims came in at 265,000 for the week ending May 2 — up 3,000 from the previous reading, the smallest increase in 15 years.

Why Alibaba Group Holding Ltd (BABA), Yelp Inc (YELP) and Norwegian Cruise Line Holdings ltd (NCLH) are 3 of Today's Best StocksAnalysts had expected jobless claims to reach 279,000.

Elsewhere, Chicago Fed President Charles Evans told CNBC that the central bank should wait longer before raising interest rates. He said the Fed should not be in a rush to move rates higher any time soon.

The Dow Jones Industrial Average and the Nasdaq Composite gained 0.5% while the S&P 500 was up 0.4%. Most sectors were in positive territory as technology and cyclical consumer goods stocks were leading the markets.

As for individual issues, Alibaba Group Holding Ltd (NYSE:BABA), Yelp Inc (NYSE:YELP) and Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) were aided by strong earnings, new hopes and just a touch of speculation. Here’s why they are three of today’s best stocks:

Alibaba Group Holding Ltd (BABA)

BABA stock roared over 7% higher today for two big reasons — an earnings beat and the naming of a new CEO.

Alibaba reported fourth-quarter earnings of 48 cents per American depository share on revenue of $2.81 billion. Both of these were above Wall Street estimates for 42 cents per share on $2.77 billion.

In addition, BABA announced that CEO Jonathan Lu will resign May 10 and be replaced by COO Daniel Zhang. Lu will remain as chairman of the board.

The change is not totally unexpected. Increasing competition, problems with sales of counterfeit merchandise and other problems have plagued BABA for many months now — BABA stock has dropped from $115 in November to a recent low below $80.

Today’s earnings report and change of CEO sent the stock above the 50-day moving average once more, and briefly above recent resistance at $87.50.

Yelp Inc (YELP)

YELP stock surged 23% today on 31.9 million shares after a Wall Street Journal report that it is exploring a possible sale for as much as $3.5 billion.

In 2009, Yelp executives had considered selling their online review company to Google Inc (NASDAQ:GOOG, NASDAQ:GOOGL), but that deal never materialized. Trading of YELP stock was briefly halted this morning following the release of the report.

According to the Journal, Yelp has been working with investment bankers and has had contact with potential buyers. However, it noted that a sale is not imminent.

Despite an increase in unique monthly visitors, YELP stock has recently fallen as a result of declining advertising revenue. YELP stock touched $95 in March 2014, but has since dipped as low as $40.

Today’s price at the closing bell was $47.01

Norwegian Cruise Line Holdings Ltd (NCLH)

NCLH stock jumped 7% today after reporting earnings of 27 cents per share, besting analysts’ estimates of 23 cents. Earnings improved 4 cents per share from the same quarter a year ago.

However, revenue of $938.2 million was far below the estimate for $962 million, and as everyone else on Wall Street is doing, blamed on unfavorable currency exchanges.

Company estimates for 2015 are $2.75 to $2.90 a share, which is in line with analysts’ estimates.  Norwegian purchased Prestige Cruises International this past quarter.

NCLH stock is up 33% since December.

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/2015/05/why-alibaba-group-holding-ltd-baba-yelp-inc-yelp-and-norwegian-cruise-line-holdings-ltd-nclh-are-3-of-todays-best-stocks/.

©2024 InvestorPlace Media, LLC