Why Are These Four Stocks Surging Amid Today’s Falling Market?

U.S. stocks have extended losses into the afternoon today, ahead of Federal Reserve’s highly anticipated interest rate decision next week. Although the main indices are sharply lower, there are several stocks that have not followed the herd and went north instead. Let’s find out why CenterPoint Energy, Inc. (NYSE:CNP), NCI Building Systems Inc (NYSE:NCS), Empire District Electric Co (NYSE:EDE), and Summit Midstream Partners LP (NYSE:SMLP) are trading higher this afternoon.

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CenterPoint Energy, Inc. (NYSE:CNP) is trending higher at noon, despite the fact that gas utility stocks are deep into red. The stock has staged a strong rally after the opening bell, advancing by as much as 8% before settling around the $17 level. So far this year, the stock has been a poor performer, falling by 27% year to date. Third quarter results were also disappointing, as CenterPoint Energy posted a loss of $0.91 per share on the back of $1.63 billion in revenues.

Hedge fund sentiment towards CenterPoint Energy, Inc. (NYSE:CNP) remained intact by the end of the third quarter, as 25 hedge funds reported positions in the company. Jonathan Barrett and Paul Segal are very bullish on this stock, having increased their holding by 252% during the quarter. In its latest 13F filing, their fund, Luminus Management, reported ownership of 4.55 million shares worth $82.2 million.

Solid fourth quarter numbers have sent NCI Building Systems Inc (NYSE:NCS) up today, as the company beat market expectations. NCI posted revenues of $459.8 million, up by 17% year over year, and a profit of $0.31 per share when adjusted for one-time gains and costs, beating analysts expectations of $0.22 per share. Shares have opened 11% higher today and have fallen a bit before settling around the $12.20 level.

NCI Building Systems Inc (NYSE:NCS)’s popularity among elite funds registered a significant boost, as the number of long positions increased to 25, from 17 at the end of June. Peter Schliemann‘s Rutabaga Capital Management is the largest holder of NCS shares among the funds we follow, having also reported a 6% increase in its holding over the quarter. According to its 13F filing, the fund holds 1.97 million shares valued at $20.8 million.

An electric utility company, Empire District Electric Co (NYSE:EDE) is also trending higher today amid falling oil prices. The stock’s performance resembles the one of CenterPoint Energy: a strong rally and a small correction before settling at the $25 level. So far this year, the stock has tumbled by 15% and is currently trading at a Price to Earnings (P/E) ratio of 18.8, above industry average of 14.3. The company also pays an annual dividend of $1.04 per share, which represents a juicy yield of 4.6%.

During the third quarter, Empire District Electric Co (NYSE:EDE) has lost some of its appeal, as the number of funds invested dropped to 8 from 10 at the end of the second quarter. Jim Simons‘ Renaissance Technologies holds the largest position among the funds we follow: 959,517 shares worth $21.1 million according to its latest quarterly report. Israel Englander is also keeping an eye, having boosted his stake by 8% to 590,427 shares.

Summit Midstream Partners LP (NYSE:SMLP) is soaring today after the company announced it will receive further support from Energy Capital Partners to facilitate its drop-down strategy without need of equity issuance in 2016. Energy Capital has also pledged an additional $100 million for the acquisition of SMLP units in open market transactions. Summit Midstream Partners has also reaffirmed 2015 full year guidance: adjusted EBITDA is expected to range between $210 million and $220 million, while distribution growth per unit is expected to be between 4.0% and 6.0%. Shares are currently trading at $16.67, up by 22% from yesterday’s closing price.

At the end of September, roughly 4% of Summit Midstream Partners LP (NYSE:SMLP)’s outstanding stock was held by 3 top funds, down from 4 at the end of June. According to our database, Mick Hellman and his fund, HMI Capital, hold the largest position in SMLP among elite funds. The fund reportedly owns 2.55 million shares valued at $44.9 million at the end of September.

Disclosure: none