Yahoo! Inc. (YHOO), Ross Stores, Inc. (ROST), BMC Software, Inc. (BMC): Today’s 3 Best Stocks

Business software maker BMC Software, Inc. (NASDAQ:BMC) tacked on 3.4% after a Reuters report commented that multiple private equity groups are teaming up to take BMC private. KKR and TPG Capital have purportedly teamed up against Golden Gate Capital and Bain Capital in what could turn into a bidding war for BMC. BMC Software, Inc. (NASDAQ:BMC) declined to comment on the rumors, but its results of late would indicate it’s running behind its peers in terms of cloud-based innovations. A buyout, should one occur, would likely be the best outcome for improving shareholder value.

Finally, born-again search engine Yahoo! Inc. (NASDAQ:YHOO) vaulted 3.5% after receiving an upgrade from research firm Oppenheimer. The covering analyst, Jason Helfstein, increased his price target on the company to $27, from $22, and placed an “outperform” rating on the company from his previous rating of “perform.” Crucial to Heflstein’s analysis is the belief that the Alibaba IPO will be a positive for Yahoo! Inc. (NASDAQ:YHOO), and that its page design and toolbar will drive traffic and growth. I have a hard time arguing against Helfstein’s analysis, or against CEO Marissa Mayer’s brass leadership, but Yahoo! Inc. (NASDAQ:YHOO) also has a very shaky history of meeting expectations. I think it would be wise to take today’s upgrade with a grain of salt.

The article Today’s 3 Best Stocks originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of BMC Software and Oracle.

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