Wall Street had a bad Thursday, but these 2 winning stocks turned out well

Recent stock market volatility has rattled many investors, but some had hoped February’s gains so far could mark a turning point for equities. Unfortunately, that theory suffered a significant setback on Thursday, as a worse-than-expected reading of inflation sent the stock market tumbling. The worst declines were recorded in Nasdaq Compound (NASDAQ INDEX: ^IXIC)but the S&P500 (SNP INDEX: ^GSPC) and Dow Jones Industrial Average (DJINDICES: ^ DJI) also came out badly.

Index

Percentage change

Change of stitches

Dow Jones Industrials

(1.47%)

(526)

S&P500

(1.81%)

(83)

Nasdaq Compound

(2.10%)

(305)

Data source: Yahoo! Finance.

Even as the market as a whole fell, a few stocks posted 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 nearly 5% higher on Thursday. The Canadian alternative asset manager announced strong operating results for the fourth quarter and full year 2021. It also announced that it will review a strategic move that could create shareholder value.

Brookfield’s 2021 has been a banner year for the asset manager. Net income was $12.4 billion for the year, up from just over $700 million in 2020. The company’s distributable income, a key metric for the asset manager, rose over $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 also showed his continued success. Capital inflows totaled $71 billion for the year, with several new funds in key areas such as credit markets, real estate, private equity and infrastructure. These inflows are helping to generate higher fee income, and the success of Brookfield’s investments has also boosted its interest.

Finally, Brookfield said it was considering the possibility of splitting off the part of its asset management business that serves institutional clients. It would potentially represent a big transition, but Brookfield hopes to secure a valuation of up to $100 billion for the division. It would be just the latest in a string of successes for long-term Brookfield shareholders.

Image source: Getty Images.

Mattel wins the game

Elsewhere, Mattel shares ended nearly 8% higher. The toymaker’s fourth-quarter financial numbers gave investors confidence in its outlook for 2022.

Mattel sales soared 10% in the fourth quarter to nearly $1.8 billion, capping a year in which the toymaker posted a 19% overall increase in revenue. Net income was $226 million, with substantial gains even after taking into account some extraordinary gains related to deferred tax assets. Mattel said it has seen growth in many areas, ranging from dolls, action figures and building sets to games, vehicles and products for infants and toddlers.

Mattel also released ambitious directions and goals for the next two years. In 2022, Mattel estimates it should be able to grow sales by 8% to 10%, with adjusted earnings of $1.42 to $1.48 per share. The toymaker expects even better results in 2023, with single-digit percentage growth on revenue 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 benefited from this trend. Now it’s up to Mattel to make sure it maintains the positive momentum it has built.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end consulting service Motley Fool. We are heterogeneous! Challenging 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 wealthier.

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