The stock market’s recent volatility has shaken many investors, but some had hoped that February’s gains so far might mark a turning point for stocks. Unfortunately, that theory went through a significant setback on Thursday, as a reading on inflation that was worse than expected sent the stock market broadly lower. The worst declines were in the Nasdaq Composite (NASDAQINDEX:^IXIC), but the S&P 500 (SNPINDEX:^GSPC) and Dow Jones Industrial Average (DJINDICES:^DJI) also fared poorly.
|
Index |
Percentage Change |
Point Change |
|---|---|---|
|
Dow Jones Industrials |
(1.47%) |
(526) |
|
S&P 500 |
(1.81%) |
(83) |
|
Nasdaq Composite |
(2.10%) |
(305) |
Data source: Yahoo! Finance.
Even as the broader market fell, a couple of stocks showed notable gains. Brookfield Asset Management (NYSE:BAM) and Mattel (NASDAQ:MAT) were strong performers in the stock market on Thursday, and below, you’ll find out why.
Brookfield manages a winning quarter
Shares of Brookfield Asset Management closed up nearly 5% on Thursday. The Canadian alternative-asset manager reported strong operating results for the fourth quarter and the full 2021 year. It also announced it will look into a strategic move that could unlock value for shareholders.
Brookfield’s 2021 was a record year for the asset manager. Net income came in at $12.4 billion for the year, up from just over $700 million in 2020. The company’s distributable earnings, a key metric for the asset manager, rose by more than $2 billion year over year to $6.28 billion. Funds from operations climbed to $7.56 billion from $5.18 billion in 2020.
Brookfield’s other metrics showed its continued success, as well. Capital inflows totaled $71 billion for the year, with several new funds in key areas like credit markets, real estate, private equity, and infrastructure. Those inflows help generate greater fee-related earnings, and Brookfield’s investment success also boosted its carried interest.
Lastly, Brookfield said that it’s looking at the possibility of spinning off the portion of its asset-management business that serves institutional clients. That would potentially represent a big transition, but Brookfield is hopeful it could get a valuation of as much as $100 billion for the division. That would mark just the latest in a string of successes for Brookfield shareholders over the long run.
Image source: Getty Images.
Mattel’s winning the game
Elsewhere, shares of Mattel finished up nearly 8%. The toymaker’s fourth-quarter financial numbers gave investors confidence about its prospects for 2022.
Mattel’s sales climbed 10% in the fourth quarter to nearly $1.8 billion, closing a year in which the toymaker posted 19% revenue gains overall. Net income rose to $226 million, with substantial gains even after accounting for some extraordinary gains related to deferred-tax assets. Mattel said that it saw growth in many areas, ranging from dolls, action figures, and building sets to games, vehicles, and infant/toddler-targeted products.
Mattel also released ambitious guidance and goals for the next two years. In 2022, Mattel believes it should be able to grow sales by 8% to 10%, with adjusted earnings coming in at $1.42 to $1.48 per share. The toymaker expects even better results in 2023, with high-single-digit percentage growth on the top line and earnings of at least $1.90 per share on an adjusted basis.
Consumers have made up for lost time in 2021, and Mattel has been a beneficiary of that trend. Now, it’s up to Mattel to make sure it keeps up the positive momentum it’s built.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
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