Brunswick

Despite lowered second-quarter analyst earnings expectations of $1.18 from $1.21, the company’s stock shot up more than 4% last week.

Investors seem hopeful that management will boost annual guidance. Third-quarter earnings expectations increased from 94 cents in April to 97 cents. And full year analyst earnings expectations are up a penny to $3.48.

Brunswick offers great value and could jump another 38% to our $67 target. On a year-over-year basis all of the company’s segments saw sales growth in the first quarter. Fitness sales led the way increasing 17.5% from $185.6 million in Q1 2015 to $218 million in Q1 2016.

Charles River Laboratories

Charles River Laboratories and Moderna Therapeutics announced their partnership to advance Moderna’s pipeline of ten drugs in development. These drugs are based on Moderna’s research on the use of messenger RNA to make vaccines for infectious diseases, personalized cancer vaccines and treatments for cancer.

Charles River’s role in the development of these drugs is as a contract research organization. What that means is that Charles River will test Moderna’s drugs in order to speed up the development process.

Criteo

Last month the digital-advertising company introduced new marketing software called Criteo Dynamic Email. This software sends personalized emails to a company’s website customers based on the customers’ browsing preferences. The company recognizes that mass distributed email ads are less effective than they used to be, and can even hurt sales.

Criteo Dynamic Email recognizes customers who have already received targeted emails from a company and prevents further emails from being sent out. Advertisements that are perceived by customers to be a nuisance can cause customers to avoid the companies that send those ads. Being perceived as a nuisance by customers can lower a company’s sales, which lowers the sales of the digital-marketing company they work with.

Marketing manager at eBags, Larry Sweeney, said that Criteo Dynamic Email increased the open rate of eBags’ emails by 30% and increased traffic to the company’s website through those emails by 25%.

Also, In June Criteo filed a lawsuit against SteelHouse alleging that the rival ran a “counterfeit click fraud scheme” involving former Criteo clients. And last month five of SteelHouse’s former clients said that they were deceived by the company, supporting Criteo’s allegations. The former clients include bodybuilding website, BodyBuilding.com, as well as Toms Shoes.  Both have suspended service from SteelHouse and demanded a full refund. These developments support Criteo’s initial allegations and indicate that the company has an advantage that its rivals are struggling to legally compete against.

Drew Industries

The recreational vehicle component maker has been on a tear since its impressive first-quarter 2016 earnings beat of $1.45, 44% above estimates of $1.01.

Drew’s stock has skyrocketed 29% since the start of May from $63.70 to $82.15. RV sales hit 374,000 in 2015, the best annual total since 2004, and Drew is reaping the rewards.

The company’s analyst earnings expectations are up across the board. Second-quarter earnings expectations of $1.29 are up more than 19%, or 21 cents, from $1.08 in April. Third-quarter expectations of $1.05 are up 22% from 86 cents in the same month. And full year earnings expectations are up nearly 23% from $3.77 in April to $4.63.

Drew customer Thor Industries (THO) reported strong third quarter numbers. Backlog for towable and motorized RVs was up 50% and 36% respectively, a positive omen for Drew’s future sales.

SolarEdge

While big solar panel system sellers like SolarCity struggle to maintain sales, solar panel component suppliers like SolarEdge beat earnings expectations quarter after quarter. This is because lower solar panel system prices increase the demand for the systems, which increase demand for the components and increase SolarEdge’s sales.

According to Bloomberg’s New Energy Outlook 2016, solar and wind Energy will be “the cheapest ways of producing electricity in many countries during the 2020s and in most of the world in the 2030s.”

Full year analyst earnings expectations are up 2 cents from April to $1.72. SolarEdge has beaten analyst estimates for the prior 4 quarters by an average of 31% per quarter.

Vera Bradley

Vera Bradley reported a good first quarter at the start of the month. Considering the turmoil engulfing the retail industry we were pleased to see the company beat earnings expectations by a penny. First-quarter revenue was up 4% to $105 million from $101 million a year prior.

Management is confident that the company will be able to increase sales in the second half of the year. Robert Wallstrom, Chief Executive Officer, said that the Vera Bradley would launch its new brand positioning campaign in September, ahead of the typically most profitable fourth quarter. The campaign supports our investment thesis that Vera is focusing on capturing new customers with newly designed, more profitable bags.