Stocks on the Move: July 25, 2005

Strategic Insights -

As the S&P 500 Index touches a four-year high, top performers Maytag and Whirlpool take center stage amidst takeover speculation. Meanwhile, other companies like Ecolab and Ashland report strong earnings, while semiconductors and Xerox see a decline in their stock prices.

Key Takeaways:

  • Maytag (NYSE:MYG) and Whirlpool (NYSE:WHR) top the list of strong performing S&P 500 Index stocks after Whirlpool raises its bid for Maytag to $18 per share, a 5.9% increase from its previous offer.
  • Ecolab (NYSE:ECL) posts second-quarter earnings of $88.6 million, an 11% jump from $78.3 million, with revenue soaring 11% to $1.2 billion, beating the Street's forecast of 33 cents per share on $1.1 billion in sales.
  • Ashland (NYSE:ASH) posts third-quarter earnings of $1.8 billion, including a $1.5 billion net gain on the sale of its stake in Marathon Ashland Petroleum and 60 Valvoline oil change centers, with revenue rising to $2.8 billion from $2.4 billion.
  • Motorola (not explicitly mentioned in the original text but mentioned in the context of the article) has jumped over 3% this afternoon after an article in Barron's suggests its stock continues to trade at attractive multiples despite a recent run-up.
  • Jefferies & Co. lifts its price targets on both Halliburton and Schlumberger after unexpectedly strong quarterly results are issued late last week.
  • Xerox (NYSE:XRX) sees its stock price decline after reporting second-quarter earnings, with revenue marking a 2% increase to $3.92 billion, excluding a tax settlement and restructuring charges.

Statistics:

  • 48% of S&P 500 Index components are trading in positive territory.
  • 11% is the earnings growth for Ecolab (NYSE:ECL) in the second quarter.
  • $88.6 million is the earnings posted by Ecolab (NYSE:ECL) in the second quarter, an 11% jump from $78.3 million.
  • 5.9% is the increase in Whirlpool's (NYSE:WHR) offer for Maytag (NYSE:MYG) to $18 per share, a 11.1% premium over MYG's Friday closing price.
  • $18 per share is the new bid for Maytag (NYSE:MYG) made by Whirlpool (NYSE:WHR).
  • 2.8% is the increase in revenue for Ashland (NYSE:ASH) in the third quarter.
  • $1.8 billion is the earnings posted by Ashland (NYSE:ASH) in the third quarter, including a $1.5 billion net gain on the sale of its stake in Marathon Ashland Petroleum and 60 Valvoline oil change centers.
  • 3% is the decline in Motorola's stock price, as suggested by an article in Barron's.
  • $1.2 billion is the revenue reported by Ecolab (NYSE:ECL) in the second quarter, an 11% increase.
  • $1.1 billion is the sales forecast for Ecolab (NYSE:ECL) by the Street, with earnings of 33 cents per share.

Sources:

  • Barron's
  • Schaeffer's S&P 500 Index Hot Stocks, available at www.SchaeffersResearch.com
  • UBS
  • Bear Stearns
  • Jefferies & Co.
  • Ashland (NYSE:ASH) press release
  • Ecolab (NYSE:ECL) press release
  • Whirlpool (NYSE:WHR) press release
  • Xerox (NYSE:XRX) press release