What happened The Michaels Companies (NASDAQ: MIK) stock outperformed a surging market in November. Shareholders gained 21% compared to the 11% increase in the S&P 500, according to data provided by S&P Global Market Intelligence. The rally put the retailer back in solidly positive territory for the year, although it mostly erased losses from the prior month. Image source: Getty Images. So what Investors' outlook about the COVID-19 pandemic brightened significantly last month, and that boost had a significant impact on Michaels stock, which had attracted many bearish bets earlier in the year. The share price bounce also reflected hopes that the specialty retailer might announce strong third-quarter operating results in early December while forecasting continued gains over the critical holiday shopping season. Now what Michaels' third-quarter report did indeed reveal improving trends, with comparable-store sales jumping 16% after having risen 12% in the prior quarter. Investors celebrated that news, along with signs of elevated profitability. CEO Ashley Buchanan and her team declined to issue a detailed outlook for the holidays. But management said it was pleased with customer traffic at the start of the quarter and is happy with Michaels' overall inventory position. As a result, investors have some good reasons to feel positive about this retailing business heading into 2021. 10 stocks we like better than The Michaels CompaniesWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and The Michaels Companies wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool recommends The Michaels Companies. The Motley Fool has a disclosure policy.Source