Indexes fell again on Wednesday, posting somewhat larger losses that made some look more closely at just how long the bull market has persisted. The Dow Jones Industrial Average finished down triple digits on the day, while other major benchmarks lost roughly 0.5%. The same stories seemed to capture the attention of most investors, including the ongoing evolution of tax reform on Capitol Hill and uncertainty about the future direction of interest rates. Some also pointed to the oil markets, where crude prices dropped back toward $55 per barrel. Yet some stocks had strong gains, and The Children's Place (PLCE 9.74%), Teva Pharmaceutical Industries (TEVA 3.78%), and Sears Holdings (SHLD +0.00%) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Children's Place builds momentum going into the holidays
Shares of The Children's Place rose 6% after the children's specialty apparel retailer reported favorable financial results for its fiscal third quarter. The company said that its comparable retail sales rose more than 5% during the period, marking the eighth straight quarter in which Children's Place has had positive comps. Despite negative factors like major hurricanes and the bankruptcy of key competitor Gymboree, Children's Place kept growing its adjusted net income and has seen a good start to the current quarter. After having previously shown its strength in the key back-to-school period, Children's Place looks well-poised for continued success.
Image source: The Children's Place.
Teva gets a favorable review
Teva Pharmaceutical Industries stock climbed 7% in the wake of signs of a potential rebound for the drug company. Analysts at Jefferies gave some opinions about Teva's prospects, noting their belief that initiatives to reduce expenses and potentially sell off non-core assets are definite possibilities for future consideration. Yet they don't expect a major secondary offering of stock, which is good news for those who have feared the potential dilutive impact of needing to raise capital. Teva's main challenge right now is dealing with competition to a key drug and weakness in pricing in the generics market. Yet if Teva can get past those roadblocks, then the longer-term prospects for the company look brighter.
Sears bounces back
Finally, shares of Sears Holdings picked up 9.5%. The department store retailer has been under siege for years, with many believing that it's just a matter of time until competition from e-commerce finally deals a deathblow to Sears. Yet the holiday season holds at least the potential for Sears to find a bit of success, and hope often seems to come back when Black Friday approaches. Today's small bounce doesn't put much of a dent in the huge losses that longtime shareholders have suffered, but it does show that if the retailer manages to do even a little bit better than the low expectations that most have, the stock has room for dramatic short-term gains.
