OmniVision Technologies, Inc. (OVTI), Krispy Kreme Doughnuts (KKD): Which Double-Digit Friday Mover Is a Buy?

Personally, I listened to the company’s conference call, and management was very upbeat in discussing “great” and “exceptional” traffic. Not to mention the company is becoming more efficient, as operating income and adjustable net income rose 40% and 37%, respectively, in FQ1.

Overall, it was a home run in every metric, as doughnut sales were “doggone strong,” according to management. The company is also benefiting from high-priced coffee drinks, including k cups, and higher same store sales. As a result, Krispy Kreme Doughnuts (NYSE:KKD) is looking very attractive.

Final Thoughts

Obviously, I am not buying the Guess? rally. However, both OmniVision Technologies, Inc. (NASDAQ:OVTI) and Krispy Kreme Doughnuts (NYSE:KKD) are showing many signs of improved long-term performance trends.

While OmniVision Technologies, Inc. (NASDAQ:OVTI)’s guidance is strong, I don’t like the idea that it’s 100% speculative, and is based upon future releases. In fact, with declining year-over-year revenue, I think all expectations might be priced into the stock. With that said, it is a good speculative play, but is not a home run by any means.

Krispy Kreme Doughnuts (NYSE:KKD) is the last company that I’d expect to be posting double-digit growth, and it’s that growth that separates it from OmniVision Technologies, Inc. (NASDAQ:OVTI). I’ve always been skeptical of its integration of coffee, but with results being so effective, I do wonder what product offerings the company may offer next. Thus, I am buying the doughnut rush, and believe Krispy Kreme Doughnuts (NYSE:KKD) is a definite “buy” on top of market-leading gains.

The article Which Double-Digit Friday Mover Is a Buy? originally appeared on Fool.com and is written by Brian Nichols.

Brian Nichols has no position in any stocks mentioned. The Motley Fool recommends Guess?. The Motley Fool owns shares of Guess?. Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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