Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Today’s 3 Best Stocks: Microchip Technology Inc. (MCHP), Biogen Idec Inc. (BIIB), Yum! Brands, Inc. (YUM)

Page 1 of 2

Another day, another new five-year high for the broad-based S&P 500, which caught flight on positive economic data and a flurry of strong earnings reports.

On the economic data front, China reported a 12.4% surge in exports in January, and Germany recorded its second-largest trade surplus in the past 60 years, signaling that both economic powerhouses may be in better shape than first thought. Domestically, a smaller U.S. trade deficit gave investors hope that U.S. goods are in high demand overseas.

Microchip Technology Inc. (NASDAQ:MCHP)No company gave the market a bigger boost from an earnings perspective than online professional network, Linkedin Corporation (NYSE:LNKD), which soared 21% after reporting better-than-expected fourth-quarter results. For the quarter, LinkedIn recorded an 8% increase in membership, to 202 million, as revenue spiked 81%, to $303.6 million, and profit swelled to $0.35 per share. Both figures, as well as LinkedIn’s first-quarter forecast, trounced Wall Street’s loftiest expectations. Yesterday may have been a bit of a tech-wreck, but that’s certainly not the case today!

For the day, the S&P 500 finished higher by 8.54 points (0.57%), to close at 1,517.93.

Microcontroller maker Microchip Technology Inc. (NASDAQ:MCHP), whose semiconductor products are used in touchscreen devices, was today’s biggest gainer within the S&P 500, advancing better than 7%, after reporting robust fourth-quarter results. Microcontroller sales spiked 22% during the quarter and accounted for 64% of Microchip’s total sales, as net income rose 14%, to $0.41. Microchip’s first-quarter sales and EPS forecast also handily trumped Wall Street’s expectations. As long as smartphone and tablet usage continues to rise, which seems to be a foregone conclusion, Microchip’s microcontroller demand should increase, and the company could have room yet to run even higher.

Global restaurant chain Yum! Brands, Inc. (NYSE:YUM) gained 2.7%, at the expense of McDonald’s Corporation (NYSE:MCD) pain. McDonald’s, earlier today, posted a worse-than-expected 1.9% drop in restaurant sales in January, and forecast near-term continued weakness. Yum!, which has been dealing with weak sales in Asia due to allegations of serving chicken with excess amounts of chemicals, is benefiting on the hope that McDonald’s weakness might be its chance to take market share – especially in fast-growing Asia. At 17.5 times forward earnings, I don’t share the same enthusiasm as investors, but I’m keeping Yum! on my watchlist, nonetheless.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!