4 ASX stocks smashing the market today

Amcom Telecommunications Limited (ASX:AMM) and Qantas Airways Limited (ASX:QAN) are leading the market higher today.

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The S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) has lifted around half a percent in early trade with several stocks thumping that return on the back of some positive earnings updates or takeover news that points to a bright outlook.

Let’s take a look at four stocks riding higher this morning as a result of falling into the above categories.

Sleep treatment business ResMed Inc. (CHESS) (ASX: RMD) has investors wide awake to its potential after reporting positively quarterly results last week, with revenues up 6% on the prior corresponding period. While the results were good what’s exciting forward-looking investors is the potential of new product launches to carry on the sales momentum right through financial-year 2015.

Shares are up 3% to $5.90 and may be approaching fair value, although any price weakness looks a buying opportunity.

Another business to surprise the market with a positive earnings update is Australian icon Qantas Airways Limited (ASX: QAN). The Flying Kangaroo’s captain Alan Joyce shocked some by announcing the business is on track to make a profit in the first half of 2015.

The message is that Qantas has flown through the tough times and is now set to benefit from some drastic cost-cutting, a lower Aussie dollar and management’s new found competence in strategic decision making.

Shares are up 5 cents to $1.47 and Qantas remains a speculative bet given the high cost base and tough operating environment.

Retail Food Group Limited (ASX: RFG) sells pizzas, cake and donuts through its many retail outlets but its ambition to become a giant coffee retailer is what’s really exciting investors this morning.

Last week the group announced it is to buy the Gloria Jean’s coffee chain. Profits are now forecast to climb 36% over the last financial year and if the group is able to successfully execute on the purchase its future as a multi-brand retail food franchisor looks increasingly bright.

Shares are up more than 8% to $5.28 and are unsurprisingly trading at a significant premium to the $4.80 price at which the group issued equity to raise funds for the Gloria Jean’s acquisition.

Internet service provider Amcom Telecommunications Limited (ASX: AMM) this morning announced that rival data centre and fibre optic internet business Vocus Communications Limited (ASX: VOC) has acquired a 10% stake in the business. The potential for a full takeover is clear and investors with an eye on the fibre optic future of internet services would do well to consider these two leading players.

Amcom shares are up more than 9% to $2.03, which is no surprise given this business appears to be sitting in the middle of a growth sweet spot.

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Motley Fool contributor Tom Richardson owns shares in Vocus, Amcom, Retail Food Group and ResMed. You can find him on Twitter @tommyr345

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