The earnings season for Big Biotech kicks of later this month when Biogen (BIIB) unveils second quarter financial results on July 21. But will those reports be enough to reverse the negative sentiment surrounding the sector?
The biotech analyst team at Cowen expects strong earnings driven by ,solid demand, an open pricing environment in the U.S. and a currency tailwind. But, they warn, the sector may lack sizzle.
Steady financial performance in the absence of an exciting new product cycle may not be enough to overcome negative sentiment toward the groupInvestors are increasingly of the view that biotech fundamentals have deteriorated. They cite disappointing drug launches, a lack of pipeline catalysts, heightened payor pressures, and earnings growth that appears more dependent on financial engineering. While we admit that biotech is lacking an exciting new product cycle, we are not aware of any changes to the drug development process or commercial landscape that could have altered the industry’s fundamental value proposition. Rather we suspect that poor stock performance and investor sentiment may be engendering a “glass half empty” view toward fundamentals that are largely unchanged relative to a year ago when investors were touting biotech for its innovation cycle and increased R&D productivity. Earnings are the most objective metric for gauging perfor mance, and we expect Q2 to support the notion that biotech’s growth outlook and value proposition remain favorable relative to other sectors. As such, Q2 should provide the sector with a firmer level of support. However, more substantial upside is likely to be dependent on a change in sentiment, which is subjective and always difficult to predict in terms of timing.
Top 10 Freight Companies To Watch In Right Now: GTx Inc.(GTXI)
GTx, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of small molecules for the treatment of cancer, cancer supportive care, and other serious medical conditions. The company markets FARESTON (toremifene citrate) 60 mg tablets for the treatment of metastatic breast cancer in postmenopausal women primarily through wholesale drug distributors in the United States. It is developing selective androgen receptor modulators (SARMs), including Ostarine (GTx-024), which has completed Phase II clinical trial for the prevention and treatment of muscle wasting in patients with non-small cell lung cancer; and CapesarisTM (GTx-758), a selective estrogen receptor alpha agonist that has completed Phase IIa clinical trial for the first line treatment of advanced prostate cancer. In addition, the company is developing estrogen receptor beta agonists and other novel compounds that are in preclinical development stage for the treatment of metabo lic diseases, ophthalmic diseases, cancer, psoriasis, and/or pain. The company was founded in 1997 and is headquartered Memphis, Tennessee.
- [By Roberto Pedone]
One biopharmaceutical player that’s rapidly moving within range of triggering a major breakout trade is GTx (GTXI), which is dedicated to the discovery, development and commercialization of small molecules that selectively target hormone pathways to treat cancer, osteoporosis and bone loss, muscle loss and other serious medical condition. This stock has been hammered by the bears so far in 2013, with shares off sharply by 53%.
If you look at the chart for GTx, you’ll notice that this stock recently gapped down sharply from over $4 to below $1.50 a share with heavy downside volume. Following that gap down, shares of GTXI have rebounded sharply and started to uptrend, with the stock moving higher from its low of $1.31 to its recent high of $1.96 a share. During that move, shares of GTXI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GTXI within range of triggering a major breakout trade.
Traders should now look for long-biased trades in GTXI if it manages to break out above some near-term overhead resistance at $1.96 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.35 million shares. If that breakout triggers soon, then GTXI will set up to re-fill some of its previous gap down zone from August that started just above $4 a share. Some possible upside targets if GTXI gets into that gap with volume are $2.50 to $3 a share, or possibly even $3.50 a share.
Traders can look to buy GTXI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.50 a share. One can also buy GTXI off strength once it takes out $1.96 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Top 10 Freight Companies To Watch In Right Now: American International Group Inc.(AIG)
American International Group, Inc. is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. It also involves in commercial aircraft leasing and residential mortgage guaranty insurance businesses. The company, through Chartis Inc., provides various property and casualty insurance products under commercial and consumer categories worldwide. These products include surplus lines, executive liability/directors? and officers? liability, employment practices, excess casualty, and travel/assistance lines. American International Group, through SunAmerica Financial Group, offers a suite of life insurance and retirement products and services, including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities, mutual funds, and financial planning products and services to individuals and grou ps in the United States. The company, through International Lease Finance Corporation, operates as an aircraft lessor that acquires commercial jet aircraft from various manufacturers and other parties, and leases those aircraft to airlines worldwide. It also sells aircraft from its fleet to other leasing companies, financial services companies, and airlines, as well as provides management services to third-party owners of aircraft portfolios. American International Group, through United Guaranty Corporation, issues residential mortgage guaranty insurance that covers mortgage lenders from the first loss for credit defaults on high loan-to-value conventional first-lien mortgages for the purchase or refinance of one- to four-family residences in the U.S. and internationally. The company was founded in 1967 and is based in New York, New York.
- [By Ben Levisohn]
Citigroup’s Todd Bault and Erik Bass argue that “there are likely more good things that can happen compared to bad” for American International Group (AIG). They explain:
Top 5 Clean Energy Stocks For 2016: T-Mobile US, Inc.(TMUS)
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers voice, messaging, and data services in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, such as smartphones, tablets, and other mobile communication devices, as well as accessories, which are manufactured by various suppliers. It offers services, devices, and accessories through its owned and operated retail stores, as well as through its Websites. T-Mobile US, Inc. also sells its devices and accessories to dealers and other third party distributors for resale through independent third-party retail outlets and various third-party Websites. The company provides its services under the T-Mobile and MetroPCS brands. As of December 31, 2014, it provided services to approximately 55 million customers. T-Mobile US, Inc. was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. operates as a subsidiary of Deutsche Telekom AG.
- [By Kimberly Lankford]
All current and new customers will receive at least one share of T-Mobile stock, and customers who refer new members can receive up to 100 extra shares per year. T-Mobile (TMUS) is currently selling at about $42 per shareup 8.6% over the past year and 24% over the past three yearsbut the gift could make tax filing more difficult. It can complicate your tax situation if you have an otherwise simple tax return, says Laurie Ziegler, an enrolled agent and managing member of Sass Accounting LLC, in Saukville, Wis.
- [By Andrea Tse]
Despite Verizon consistently being able to keep churn rates at very low levels over the last decade, rates have edged up compared to five years ago. The company’s churn rate for retail postpaid customers came in at 0.93% and 0.97% for the three months and six months ended June 30. Five years ago during the same period, the figures were at 0.83% and 0.88%, respectively. The latest wireless churn rate data on other telecom companies show T-Mobile USA (TMUS) coming in at 1.6% and 1.8% during those same periods, and AT&T’s arriving at 1.02% and 1.03% and almost rivaling Verizon’s during those respective time frames. In any case, Verizon still has the chance to prove that it’s able to beat its own churn rate lows again in the coming years. [Read: Blackberry Fails at the ‘Vision Thing’]
Top 10 Freight Companies To Watch In Right Now: BioMarin Pharmaceutical Inc.(BMRN)
BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and rest of the world. The company?s commercial products include Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase enzyme used for the treatment of mucopolysaccharidosis (MPS) VI; Kuvan, a proprietary synthetic oral form of 6R-BH4 used to treat patients with phenylketonuria (PKU), a metabolic disease; Aldurazyme used for the treatment of mucopolysaccharidosis I, a genetic disease; and Firdapse used to treat Lambert Eaton Myasthenic Syndrome, an autoimmune disease. It develops GALNS, an enzyme replacement therapy for the treatment of MPS IVA, a lysosomal storage disorder; PEG-PAL, an enzyme substitution therapy that is under Phase II clinical trial to treat PKU; BMN-673, a Phase I/II clinical trial product for the treatment of cancer; BMN-701, an enzyme replacement therapy, which is under Phase I/II clinical trials for Pompe disease, a glycogen storage disorder; and BMN-111, a peptide therapeutic that is under Phase I clinical trial for the treatment of achondroplasia. The company sells its Naglazyme, Kuvan, and Firdapse products to specialty pharmacies and end-users, such as hospitals and foreign government agencies, which act as retailers; and Naglazyme products to distributors and pharmaceutical wholesalers. It has a collaboration agreement with Genzyme Corporation for the manufacture of Aldurazyme; and an agreement with Merck Serono S.A. for the further development and commercialization of Kuvan and other products containing 6R-BH4 and PEG-PAL for PKU. BioMarin Pharmaceutical Inc. was founded in 1996 and is headquartered in Novato, California.
- [By Ben Levisohn]
Importantly – it reinforces our view that large cap biotech may have gotten too cheap and big pharma companies are ready and poised to do more deals as they are flush with cash, in a low interest rate environment, and need pipeline…This is positive for other large caps as well including Celgene (CELG), BioMarin Pharmaceutical (BMRN), Vertex Pharmaceuticals (VRTX), etc.
- [By Nick Taborek]
BioMarin Pharmaceutical Inc. (BMRN) rallied 3.2 percent to $79.99. Roche Holding AG, the worlds biggest maker of cancer drugs, is lining up as much as $15 billion in debt financing to buy Novato, California-based BioMarin, DealReporter reported, citing people familiar with the situation.
- [By Ben Levisohn]
Pullback BucketNames where we believe the pullback has created compelling opportunities:BioMarin Pharmaceutical (BMRN),Neurocrine Biosciences (NBIX), Medicines Company (MDCO).
- [By Monica Gerson]
BioMarin Pharmaceutical (NASDAQ: BMRN) shares moved up 1.48% to $78.64. The volume of BioMarin Pharmaceutical shares traded was 966% higher than normal. BioMarin shares jumped on Roche Holding (OTC: RHHBY) takeover report..
Top 10 Freight Companies To Watch In Right Now: MKS Instruments, Inc.(MKSI)
MKS Instruments, Inc. provides instruments, subsystems, and process control solutions that measure, control, power, monitor, and analyze critical parameters of manufacturing processes in the United States and internationally. The company operates through four segments: Advanced Manufacturing Capital Equipment, Global Service, Asia Region Sales, and Other. It offers pressure measurement and control products used for various pressure ranges and accuracies; materials delivery products, including gas flow measurement products and vacuum valves; automation and control products, such as automation platforms, programmable automation controllers, temperature controllers, and software solutions for use in automation, I/O and distributed programmable I/O, gateways, and connectivity products; and vacuum products comprising vacuum containment components, effluent management subsystems and custom stainless steel chambers, vessels, and phar maceutical process equipment hardware and housings. The company also provides power delivery and reactive gas generation products that are used in semiconductor and other thin film, as well as medical imaging equipment applications. In addition, it offers gas composition analysis products, such as mass spectrometry- and Fourier transform infra-red based gas composition analysis, and tunable filter spectroscopy products used in the engine development, environmental emissions monitoring, air safety monitoring, and semiconductor industries; information technology products, including software products for analyzing data sets for the pharmaceutical, biotech, and other industries. The company also builds precision machined components and electromechanical assemblies for the analytical instrument, scientific, semiconductor, and medical industries. It serves semiconductor capital equipment manufacturers through direct sales forces, sales representatives, and agents. The company was founded in 1961 and is headquartered in Andover, Massachuset! ts.
- [By Monica Gerson]
MKS Instruments, Inc. (NASDAQ: MKSI) is estimated to post its quarterly earnings at $0.33 per share on revenue of $177.19 million.
Pioneer Natural Resources (NYSE: PXD) is projected to post a quarterly loss at $0.75 per share on revenue of $711.66 million.
Top 10 Freight Companies To Watch In Right Now: Nuance Communications Inc.(NUAN)
Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. It offers dictation and transcription solutions and services, which automate the input and management of medical information; and speech recognition solutions for radiology, cardiology, pathology, and related specialties that help healthcare providers dictate, edit, and sign reports without manual transcription. The company also offers mobile and consumer solutions and services comprising an integrated suite of voice control and text-to-speech solutions, desktop and portable computer dictation applications, predictive text technologies, mobile messaging services, and emerging services, such as dictation, Web search, and voicemail-to-text for manufacturers and suppliers of mobile phones, automotive products, personal navigation devices, computers, and other consumer electronics. In addition, it provides customer service business intelligence and authentication solutions for enterprises in the telecommunications, financial services, travel, entertainment, and government sectors to support, understand, and communicate with their customers. Further, the company offers document imaging, print management, and PDF solutions to multifunction printer manufacturers, home offices, small businesses, and enterprise customers; software development toolkits for independent software vendors; and licenses its software to multifunction printer manufacturers. Nuance Communications, Inc. markets and sells its products through direct sales force; its e-commerce Web site; and a network of resellers, including system integrators, independent software vendors, value-added resellers, hardware vendors, telecommunications carriers, and distributors. The company was formerly known as ScanSoft, Inc. and changed its name to Nuance Communications, Inc. in November 2005. Nuance Communications, Inc. was founded in 1992 and is headquartered in Burlington, Massachusetts. Advisors’ Opinion:
- [By Lee Jackson]
Nuance Communications Inc. (NASDAQ: NUAN) is the company that brought you the Siri application that you can talk to on your iPhone. The stock also got crushed after an earnings miss this year. Mega-investor Carl Icahn has accumulated a 16.9% share of the company and may be looking for more. The consensus target for the stock sits at $22.
- [By Monica Gerson]
Nuance Communications Inc. (NASDAQ: NUAN) is projected to post its quarterly earnings at $0.35 per share on revenue of $491.14 million.
Zebra Technologies Corp. (NASDAQ: ZBRA) is estimated to report its quarterly earnings at $1.22 per share on revenue of $878.67 million.
Top 10 Freight Companies To Watch In Right Now: Huntington Bancshares Incorporated(HBAN)
Huntington Bancshares Incorporated operates as a holding company for The Huntington National Bank that provides commercial, small business, consumer, and mortgage banking services. The companys Retail and Business Banking segment offers financial products and services, including checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, and small business loans; and investments, insurance, interest rate risk protection, foreign exchange and treasury management services. Its Commercial Banking segment provides corporate risk management services and institutional sales, trading, and underwriting services; commercial property and casualty, employee benefits, personal lines, life and disability, and specialty lines of insurance; and brokerage and agency services for residential and commercial title insurance, and excess and surplus product lines of insurance. The companys Automobile Fi nance and Commercial Real Estate segment offers financing for the purchase of vehicles; financing the acquisition of new and used vehicle inventory of franchised automotive dealerships; and financing for land, buildings, and other commercial real estate owned or constructed by real estate developers, automobile dealerships, or other customers. Its Regional Banking and The Huntington Private Client Group segment provides deposits, lending, and other banking services; wealth management services, and retirement plan and corporate trust services; brokerage, annuities, advisory, and other investment products. The companys Home Lending segment offers consumer loans and mortgages. The company also offers equipment leasing; and online, mobile, and telephone banking services. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.
- [By Ben Levisohn]
Who is at the lower-end of the range for 2016 payout ratios? We expect Zions Bancorporation, Huntington Bancshares (HBAN), andBank of America to seek the least amount of capital return in 2016 (ranging between 50-60% of estimated earnings).
Top 10 Freight Companies To Watch In Right Now: Host Hotels & Resorts, Inc.(HST)
Host Hotels & Resorts, Inc. (Host Inc.), incorporated on September 28, 1998, operates as a self-managed and self-administered real estate investment trust (REIT). The Company operates through hotel ownership segment. The Company owns properties and conducts operations through Host Hotels & Resorts, L.P. (Host L.P.), of which Host Inc. is the sole general partner and in which it holds approximately 99% of the partnership interests (OP units). The Company’s portfolio consists of luxury and upper upscale properties located in the central business districts of cities, near airports and resort/conference destinations. In addition to its consolidated hotel portfolio, the Company also owns non-controlling interests in several entities and owned interest in approximately 20 hotel properties.
The Company’s lodging portfolio consists of over 100 luxury and upper-upscale hotels containing approximately 57,000 rooms, with the majority located in the United States and with approximately 20 of the properties located outside of the United States, in Australia, Brazil, Canada, Chile, Mexico and New Zealand. In addition, the Company owns non-controlling interests in two international joint ventures: a joint venture in Europe, which owns approximately 10 luxury and upper upscale hotels with approximately 3,900 rooms in Belgium, France, Germany, Spain, Sweden, the Netherlands and the United Kingdom, and another joint venture, which holds interest in approximately five operating hotels in India and over two additional hotels, which are under development. It also holds non-controlling investments in approximately two domestic hotels and a timeshare joint venture in Hawaii. The Company’s hotels operate in urban and resort markets under brand names as Fairmont, Grand Hyatt, JW Marriott, Ritz-Carlton, St. Regis, The Luxury Collection and W, or as upper upscale properties under brand names as Embassy Suites, Hilton, Hyatt, Le Meridien, Marriott Executive Apartments, Marriott Marquis, Marriott Suites, Pullman, Ren! aissance, Sheraton, Swissotel and Westin.
- [By Michael Flannelly]
Host Hotels and Resorts Inc (HST) announced early on Monday that it is raising its quarterly dividend payout from 11 cents per share to 12 cents per share, a 9.1% increase.
This quarterly dividend payout will be paid on October 15 to shareholders of record on September 30, with an ex-dividend date of September 26.
Host Hotels shares were inactive during pre-market trading on Monday. The stock is up 15.25% year-to-date.
- [By Dividends4Life]
Host Hotels & Resorts Inc. (HST) is a publicly owned real estate investment trust (REIT). The firm primarily engages in the ownership and operation of hotel properties. Sept. 16, the company increased its quarterly dividend 9.1% to $0.12 per share. The dividend is payable on Oct. 15, 2013, to stockholders of record on Sept. 30, 2013. The yield based on the new payout is 2.6%.
Top 10 Freight Companies To Watch In Right Now: Cal-Maine Foods, Inc.(CALM)
Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs. It offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Lands Best, Land O Lake, Farmhouse, and 4-Grain brand names, as well as under private labels. The company sells its products to various customers, including national and regional grocery store chains, club stores, foodservice distributors, and egg product consumers primarily in the southeastern, southwestern, mid-western, and mid-Atlantic regions of the United States. Cal-Maine Foods, Inc. was founded in 1969 and is based in Jackson, Mississippi.
- [By Manikandan Raman]
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Top 10 Freight Companies To Watch In Right Now: Rhino Resource Partners LP(RNO)
Rhino Resource Partners LP produces, processes, and sells coal of various steam and metallurgical grades in the United States. The company holds interests in various surface and underground coal mines located in Central Appalachia, Northern Appalachia, the Illinois Basin, and the Western Bituminous region. As of December 31, 2010, it operated 10 mines, including 5 underground and 5 surface mines located in Kentucky, Ohio, and West Virginia. The company markets its steam coal primarily to electric utility companies as fuel for their steam-powered generators; and metallurgical coal for steel and coke producers. It also engages in mining limestone from reserves located at its Sands Hill mining complex and sells it as aggregate to various construction companies and road builders. The company was founded in 2003 and is based in Lexington, Kentucky.
- [By Alexis Xydias]
Investors are regaining confidence, squeezing pessimists who say the economy remains sluggish outside of Germany and point to record-low trading volume as a lack of conviction in the Euro Stoxxs 61 percent rally of the past two years. Besides gains in stocks from Banco Bilbao Vizcaya Argentaria SA to Renault SA (RNO), yields on Spanish and Italian bonds have declined to a two-year low compared with German bunds and the euro has strengthened 4.6 percent to $1.35 in the past six months.