Why American Outdoor Brands, International Game Technology, and Dillard's Jumped Today
The stock market came under modest pressure on Thursday, although pullbacks were still relatively small and major benchmarks stayed close to their historic highs. Bad news on the earnings front from a major tech company weighed on investor sentiment, and some worried rising unemployment claims were a potential harbinger of economic weakness. Yet even with a slightly downbeat mood on Wall Street, some stocks managed to post strong gains. American Outdoor Brands (NASDAQ: AOBC), International Game Technology (NYSE: IGT), and Dillard's (NYSE: DDS) were among the top performers. Here's why they did so well.
Shares of American Outdoor Brands gained 6% after it announced that it would break itself up into two companies. American Outdoor said it would spin off its firearm business into a company to be known as Smith & Wesson Brands, with the remaining corporate entity keeping its original name and containing the outdoor products and accessories business. Board chair Barry Monheit said he expects the breakup to let each company "better align its strategic objectives with its capital allocation priorities." Given the challenges related to the gun business overall, it'll be interesting to see which stock performs better once the deal closes in the second half of 2020.
Image source: American Outdoor Brands.
Source Fool.com
