Biotech stocks have climbed steadily higher over the past few weeks. Still, the iShares Nasdaq Biotechnology ETF (IBB) has remained range bound between $240 and $290 for much of 2016.
So with major stock indices hitting new record highs, can biotech stocks break free? Perhaps, says Michael Yee, the industry analyst for RBC Capital Markets. But first, the market wants the political rhetoric surrounding drug prices to calm down, new positive clinical data and, finally, M&A activity.
Weve said a HC rotation from well owned and big outperforming defensive lower risk yield stocks like med tech should eventually shift a bit into underperforming biotech but generalists feel no rush to do that and think we need visibility on an election and whether the political rhetoric on drug pricing will calm down after the general election is won. As PMs position for 2017, defensive outperformers in 2016 may not be the big winners from a risk/reward standpoint vs underperformers like biotech as we enter and think about 2017 so a rotation is possible.
Top 10 Industrial Conglomerate Stocks To Watch For 2016: AbbVie Inc.(ABBV)
AbbVie Inc. discovers, develops, manufactures, and sells pharmaceutical products worldwide. The company offers HUMIRA, a biologic therapy administered as a subcutaneous injection to treat autoimmune diseases; IMBRUVICA an oral therapy for the treatment of chronic lymphocytic leukemia; and VIEKIRA PAK, an interferon-free therapy, with or without ribavirin, for adults with genotype 1 chronic hepatitis, including those with compensated cirrhosis. It also provides Kaletra, an anti-HIV-1 medicine used with other anti-HIV-1 medications as a treatment that maintains viral suppression in HIV-1 patients; Norvir, a protease inhibitor indicated in combination with other antiretroviral agents to treat HIV-1; and Synagis to prevent respiratory syncytial virus infection in high risk infants. In addition, the company offers AndroGel, a testosterone replacement therapy for males diagnosed with symptomatic low testosterone; Creon, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid to treat hypothyroidism; and Lupron, a product for the palliative treatment of prostate cancer, and endometriosis and central precocious puberty, as well as for the treatment of patients with anemia. Further, it provides Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinsons disease; Sevoflurane, an anesthesia product for human use; TriCor, Trilipix, and Niaspan treat metabolic conditions characterized by high cholesterol and/or high triglycerides; and Zemplar to treat secondary hyperparathyroidism. The company sells its products to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers from its distribution centers and public warehouses. AbbVie Inc. has strategic collaboration with C2N Diagnostics, Calico Life Sciences LLC, Infinity Pharmaceuticals, Inc., Ablynx NV, Galapagos NV, and Alvine Pharmaceuticals, Inc. The company was incorporated in 2012 and is based in North Chicago, Illi! nois.
- [By Teresa Rivas] M. Scott Brauer for The Wall Street Journal
AbbVie (ABBV) is lower Friday, following a downgrade from BMO Capital Markets.
Analyst Alex Arfaei cut his rating on the stock from Outperform to Market Perform, and lowered his price target from $70 to $66.
Details from the note:
During the past couple of months, we had become increasingly concerned about AbbVie’s major growth drivers, and the company’s R&D day did not alleviate our concerns. AbbVie is gradually diversifying from Humira; however, some of the ASCO updates after the R&D day, along with ongoing positive updates from Lilly’s immunology franchise (Taltz and Baricitinib) and a recent meeting with Pfizer’ President of Global Established Products, have increased our concerns regarding the longer-term growth prospects of AbbVie’s immunology franchise, particularly Humira. We believe that AbbVie’s management set expectations too high for its major franchises, and just as it eventually acknowledged the competitive realities of Hep-C, it will likely have to do so with other key franchises. We believe that Baricitinib will be a strong competitor for Humira. Longer term we now expect up to 30-50% price reduction in the anti-TNF market. Given the launch lead of IL-17s, we do not see Risankizumab as a transformational therapy in psoriasis. In oncology, we do not see Rova-T as a multibillion dollar drug given the rapidly emerging competition from the IOs and other targeted agents in SCLC. While we still see Imbruvica as a ~$5B franchise by 2020, we now have increased uncertainty about its longer term prospects in hematologic malignancies as the IO’s and CAR-Ts emerge.
The shares are down 0.2% to $60.61 in recent trading.
- [By Ben Levisohn]
The 20 stocks meeting those requirements are: Ralph Lauren (RL), Time Warner(TWX), Twenty-First Century Fox(FOXA), PepsiCo(PEP), Estee Lauder(EL), Tesoro(TSO), XL(XL), Ameriprise Financial,(AMP), Unum(UNM), Merck(MRK), AbbVie(ABBV), Gilead Sciences(GILD), General Dynamics(GD), Alaska Air(ALK), United Continental(UAL), Delta Air Lines(DAL), Oracle(ORCL), eBay(EBAY), Apple(AAPL), and Centurylink(CTL).
- [By Ben Levisohn]
After surveying doctors on the preferred hepatitis-C treatments, Baird’s Brian Skorney and Neena Bitritto-Garg contend that Gilead Sciences (GILD) is likely to maintain its dominance over AbbVie (ABBV), Merck (MRK) and Johnson & Johnson (JNJ) but in what appears to be a shrinking market. They explain:
Top 10 Industrial Conglomerate Stocks To Watch For 2016: J.M. Smucker Company (The)(SJM)
The J. M. Smucker Company manufactures and markets branded food products worldwide. It operates through four segments: U.S. Retail Coffee; U.S. Retail Consumer Foods; U.S. Retail Pet Foods; and International, Foodservice, and Natural Foods. The company provides various consumer food and beverage products, including coffee, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, canned milk, flour and baking ingredients, juices and beverages, frozen sandwiches, toppings, syrups, pickles, condiments, grain products, and nut mix products; and pet products comprising dry and wet dog food, dry and wet cat food, dog snacks, and cat snacks. It markets its products under the Folgers, Dunkin Donuts, Smuckers, Jif, Crisco, Pillsbury, Uncrustables, Douwe Egberts, Folgers Gourmet Selections, Millstone, Cafe Bustelo, Cafe Pilon, K-Cup, Adams, Laura Scudders, Hungry Jack, Eagle Brand, Magnolia, Robin Hood, Five Roses, Santa Cruz Organic, R. W. Knudsen Family, truRoots, Meow Mix, Milk-Bone, Kibbles n Bits, Natural Balance, 9Lives, Pup-Peroni, Gravy Train, and Natures Recipe brand names. The company sells its products through direct sales and brokers to food retailers, food wholesalers, drug stores, club stores, mass merchandisers, discount and dollar stores, military commissaries, and pet specialty stores; and through retail channels, foodservice distributors and operators, and natural foods stores and distributors. The J. M. Smucker Company was founded in 1897 and is headquartered in Orrville, Ohio.
- [By Ben Levisohn]
J.M. Smucker (SJM) has climbed 4.4% to $138.60 after reporting higher-than-forecast revenue.
Francesca’s Holdings (FRAN) has jumped 5.4% to $11.00 after beating earnings forecasts.
Best Low Price Companies To Buy For 2016: 1-800 FLOWERS.COM Inc.(FLWS)
1-800-Flowers.com, Inc. together with its subsidiaries, operates as a florist and gift retailer in the United States. The company offers a range of products, including fresh-cut flowers, floral arrangements and plants, gifts, popcorn, gourmet foods and gift baskets, cookies, chocolates, candy, and wine through its telephonic and online sales channels, company-owned and operated retail floral stores, and franchised stores. It provides gourmet gifts, such as popcorn and specialty treats through thepopcornfactory.com; cookies and baked gifts through cheryls.com; chocolates and confections through fanniemay.com and harrylondon.com; gift baskets and towers through 1800baskets.com; Celebrations brand party ideas and planning tips through celebrations.com; and customizable invitations, announcements, and greeting cards through finestationery.com. As of July 3, 2011, the company operated 2 floral retail stores, 1 fulfillment center, and approximately 100 franchised stores located within the United States. It has strategic online relationships with Facebook, Google, AOL, Yahoo!, and Microsoft. The company was founded in 1976 and is headquartered in Carle Place, New York.
- [By Wayne Duggan]
U.S. retailers performed poorly during the Christmas holiday season, but companies in the Valentine’s Day business are hoping that Americans will spend generously in the name of love this year. These names include flower delivery company 1-800-Flowers.Com Inc (NASDAQ: FLWS), L Brands Inc (NYSE: LB) (owner of both Victoria’s Secret and Bath & Body Works), Church & Dwight Co., Inc. (NYSE: CHD) (owner of Trojan brand condoms), candy giant Hershey Co (NYSE: HSY) and luxury jeweler Tiffany & Co. (NYSE: TIF).
Top 10 Industrial Conglomerate Stocks To Watch For 2016: Myriad Genetics, Inc.(MYGN)
Myriad Genetics, Inc. (Myriad), incorporated on November 6, 1992, is a molecular diagnostic company. The Company is engaged in the discovery, development and marketing of transformative molecular diagnostic tests. The Company operates through two segments: diagnostics and other. The diagnostics segment provides testing and collaborative development of testing that is designed to assess an individual’s risk for developing disease later in life, identify a patient’s likelihood of responding to drug therapy and guide a patient’s dosing to enable optimal treatment, or assess a patient’s risk of disease progression and disease recurrence. The other segment provides testing products and services to the pharmaceutical, biotechnology and medical research industries, research and development, and clinical services for patients, and also includes corporate services, such as finance, human resources, legal and information technology. Myriad offers diagnostic tests for a range of dise ases, such as Myriad myRisk Hereditary Cancer test for hereditary breast cancer, hereditary ovarian cancer, hereditary pancreatic cancer, hereditary uterine (endometrial) cancer and hereditary colon cancer; Myriad myPlan Lung Cancer test for lung cancer; Myriad myPath Melanoma test for melanoma; Prolaris test for prostate cancer, and Vectra DA for rheumatoid arthritis (RA).
Molecular Diagnostic Testing
The Company’s molecular diagnostic tests are designed to analyze genes, their expression levels and corresponding proteins. Myriad’s primary molecular diagnostic tests include myRisk Hereditary Cancer, a deoxyribonucleic acid (DNA) sequencing test for assessing the risks for hereditary cancers, such as breast cancer, ovarian cancer, colon cancer, uterine cancer, melanoma, pancreatic cancer, prostate cancer and gastric cancer; BRACAnalysis, a DNA sequencing test for assessing the risk of developing breast and ovarian cancer; BART, a DNA sequencing test for hereditary breast and ovarian cancer; BRACAnalysis CDx ! , a DNA sequencing test for use as a companion diagnostic with the poly (ADP-ribose) polymerase (PARP) inhibitor LynparzaTM (olaparib); Tumor BRACAnalysis CDx, a DNA sequencing test designed to be utilized to predict response to DNA damaging agents, such as platinum-based chemotherapy agents and PARP inhibitors; COLARIS, a DNA sequencing test for assessing the risk of colorectal and uterine cancer; COLARIS AP, a DNA sequencing test for assessing the risk of colorectal cancer; Vectra DA, a protein detection test for assessing the disease activity of rheumatoid arthritis; Prolaris, a ribonucleic acid (RNA) expression test for assessing the aggressiveness of prostate cancer; EndoPredict, an RNA expression test for assessing the aggressiveness of breast cancer; myPath Melanoma, an RNA expression test for diagnosing melanoma, and myPlan Lung Cancer, an RNA expression test for assessing the aggressiveness of lung cancer.
Pharmaceutical and Clinical Services
The Company provides a range of pharmaceutical and clinical services. Through its subsidiary, Myriad RBM, Inc., Myriad provides biomarker discovery and pharmaceutical and clinical services to the pharmaceutical, biotechnology and medical research industries utilizing its multiplexed immunoassay technology. The Company also owns Privatklinik Dr. Robert Schindlbeck GmbH & Co. KG, located approximately 15 miles from the Company’s European laboratories in Munich, Germany. The Company’s technology enables it to screen sets of well-characterized clinical samples from both diseased and non-diseased populations against its menu of biomarkers.
- [By Ben Levisohn]
We took in Walt Disney (DIS) earnings, Argus’ downgrade of Noble (NE), and Myriad Genetics’ (MYGN) freefall.
We looked at the speculation that International Paper (IP) could be a takeover target, and the progress made at Ralph Lauren (RL), and the slowing same-store sales at Shake Shack (SHAK).
Top 10 Industrial Conglomerate Stocks To Watch For 2016: California Resources Corporation(CRC)
California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. It produces oil, natural gas, and natural gas liquids. The company holds interests in approximately 2.4 million net acres. As of December 31, 2015, it had net proved reserves of 644 million barrels of oil equivalent. It also gathers, processes, and markets oil and gas products to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. In addition, the company generates and sells electricity to the grid and to others through contractual agreements. California Resources Corporation is headquartered in Los Angeles, California.
- [By Andrew Efimoff]
WTI crude oil plunged 3.11 percent on Friday to $48.99 a barrel. Below are the biggest energy losers for the day:
California Resources Corporation (NYSE: CRC): -19.22% Dynamic Materials (NASDAQ: BOOM): -12.39% Clayton Williams Energy (NYSE: CWEI): -11.45% Dynergy (NYSE: DYN): -11.91% EP Energy Corporation (NYSE: EPE): -11.20% Mexco Energy (NYSE: MXC) -10.90% Whiting Petroleum (NYSE: WLL) -10.79% Southwestern Energy Company (NYSE: SWN) -10.79% SM Energy Company (NYSE: SM) -10.38% Real Goods Solar (NASDAQ: RGSE) -10.34%
Posted-In: Commodities After-Hours Center Markets Movers
Top 10 Industrial Conglomerate Stocks To Watch For 2016: Cracker Barrel Old Country Store Inc.(CBRL)
Cracker Barrel Old Country Store, Inc., through its subsidiaries, engages in the development and operation of the Cracker Barrel Old Country Store restaurant and retail concept in the United States. Its restaurants provide breakfast, lunch, and dinner. The company?s gift shops offer various decorative and functional items, such as rocking chairs, holiday and seasonal gifts, apparel, toys, music CD?s, cookware, old-fashioned-looking ceramics, figurines, a book-on-audio sale-and-exchange program, and various other gift items, as well as candies, preserves, pies, cornbread mixes, coffee, syrups, pancake mixes, and other food items. As of November 22, 2011, it operated 608 company-owned locations in 42 states. The company was formerly known as CBRL Group, Inc. and changed its name to Cracker Barrel Old Country Store, Inc. in December 2008. Cracker Barrel Old Country Store, Inc. was founded in 1969 and is headquartered in Lebanon, Tennessee.
- [By Monica Gerson]
Analysts are expecting Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) to have earned $1.80 per share on revenue of $705.65 million in the latest quarter. Cracker Barrel shares gained 0.67 percent to $152.50 in after-hours trading.
- [By Monica Gerson]
Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) is projected to report its quarterly earnings at $1.80 per share on revenue of $705.65 million.
Top 10 Industrial Conglomerate Stocks To Watch For 2016: Westar Energy, Inc.(WR)
Westar Energy, Inc. (Westar Energy), incorporated on March 6, 1924, is an electric utility in Kansas. The Company provides electric generation, transmission and distribution services to approximately 700,000 customers in Kansas. The Company provides these services in central and northeastern Kansas, including the cities of Topeka, Lawrence, Manhattan, Salina and Hutchinson. Kansas Gas and Electric Company (KGE), Westar Energy’s subsidiary, provides the services in south-central and southeastern Kansas, including the city of Wichita. Both Westar Energy and KGE conduct business using the name Westar Energy. The Company supplies electric energy at retail to customers in Kansas. The Company also supplies electric energy at wholesale to municipalities and electric cooperatives in Kansas, and has contracts for the sale or purchase of wholesale electricity with other utilities. The Company classifies it customers as residential, commercial and industrial. It has approximately 6,2 70 megawatts (MW) of generating capacity in service.
Fossil Fuel Generation
The three coal-fired units at Jeffrey energy center have an aggregate capacity of approximately 2,150 MW, of which the Company owns or consolidate through a variable interest entity (VIE) a combined share, or over 1,970 MW. The two coal-fired units at La Cygne Generating Station (La Cygne) have an aggregate generating capacity of approximately 1,400 MW, of which the Company owns or consolidate, through a VIE. La Cygne uses primarily Powder River Basin (PRB) coal but one of the two units also uses a small portion of locally mined coal. Lawrence and Tecumseh Energy Centers have an aggregate generating capacity of approximately 540 MW.
The Company uses natural gas as a primary fuel at its Gordon Evans, Murray Gill, Hutchinson, Spring Creek and Emporia Energy Centers and at the State Line facility. The Company also uses natural gas as a supp lemental fuel in the coal-fired units at Lawrence and Tecums! eh Energy Centers.
The Company uses diesel to start some of its coal generating stations, as a primary fuel in the Hutchinson No. 4 combustion turbine and in its diesel generators. The Company also purchases No. 2 diesel in the spot market.
Wolf Creek is approximately 1,170 MW nuclear power plant located near Burlington, Kansas. KGE owns an interest in Wolf Creek, or approximately 550 MW.
The Company owns approximately 150 MW of designed installed wind capacity. Also of the approximately 1,310 MW of wind power under contract, the Company has over 910 MW in operation.
- [By Jayson Derrick]
According to a report by Bloomberg, Westar Energy Inc (NYSE: WR) is a potential takeover target from rival Ameren Corp (NYSE: AEE) and a consortium of investors, including Toronto-based Borealis Infrastructure Management and the Canada Pension Plan Investment Board.
- [By Lisa Levin]
On Thursday, utilities shares rose by 0.02 percent. Top gainers in the sector included Westar Energy Inc (NYSE: WR), Westar Energy Inc (NYSE: AT), and NRG Energy Inc (NYSE: NRG).
Top 10 Industrial Conglomerate Stocks To Watch For 2016: Air Industries Group(AIRI)
Air Industries Group, an aerospace and defense company, designs and manufactures structural parts and assemblies that focus on flight safety. The company operates through three segments: Complex Machining, Aerostructures and Electronics, and Turbine Engine Components. It offers landing gear, arresting gear, engine mounts, flight controls, throttle quadrants, jet engines, and other components; sheet metal fabrication of aero structures; and tube bending and welding services. The companys products are deployed on a range of military and commercial aircraft, including Sikorsky’s UH-60 Blackhawk and CH-47 Chinook helicopters, Lockheed Martin’s F-35 Joint Strike Fighter, Northrop Grumman’s E2D Hawkeye, Boeing’s 777, Airbus’ 380 commercial airliners, and the U.S. Navy F-18 and USAF F-16 fighter aircraft. It also produces electromechanical systems, and harness and cable assemblies; and fabricates electronic equipment and printed ci rcuit boards, as well as engages in machining of turbine engine components and the assembly of packages. In addition, the company manufactures welded and brazed chassis structures housing electronics; and military packaging and supplies. It serves aircraft manufacturers, subcontractors, and original equipment manufacturers. Air Industries Group was incorporated in 2006 and is based in Hauppauge, New York.
- [By Dividends4Life]
Air Industries Group Inc. (AIRI), an aerospace and defense company, designs and manufactures structural parts and assemblies that focus on flight safety. Sept. 17, the company increased its quarterly dividend 100% to $0.125 per share. The dividend is is payable Oct. 15, 2013 to shareholders of record as of the close of business on Sept. 30, 2013. The yield based on the new payout is 6.9%.
Top 10 Industrial Conglomerate Stocks To Watch For 2016: Foot Locker, Inc.(FL)
Foot Locker, Inc. operates as an athletic shoes and apparel retailer. The company operates in two segments, Athletic Stores and Direct-to-Customers. The Athletic Stores segment retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction, and SIX:02, as well as Runners Point, and Sidestep. As of January 30, 2016, it operated 3,383 primarily mall-based stores in the United States, Canada, Europe, Australia, and New Zealand. The Direct-to-Customers segment sell athletic footwear, apparel, equipment, team licensed products, and private-label merchandise through Internet Websites, mobile sites, and catalogs. This segment operates sites for eastbay.com, final-score.com, eastbayteamsales.com, and sp24.com, as well as footlocker.com, ladyfootlocker.com, six02.com, kidsfootlocker.com, champssports.com, footaction.com, footlock er.ca, footlocker.eu, runnerspoint.com, and sidestep-shoes.com. The company also provides franchise licenses to operate its Foot Locker stores in the Middle East and the Republic of Korea; and Runners Point Germany. It operates 64 franchised stores. The company was founded in 1879 and is headquartered in New York, New York.
- [By Monica Gerson]
Foot Locker, Inc. (NYSE: FL) reported in-line quarterly earnings, but the company’s revenue came in slightly short of analysts’ expectations.
Foot Locker’s quarterly earnings advanced 7.8 percent to $1.39 per share from $1.29 per share in the same quarter preceding year. Street analysts also predicted the company to earn $1.39 a share.
- [By Jeroen Jongbloed]
Foot Locker (FL) is a retailer of athletic shoes and apparel which operates 3369 stores in the US, Canada, Europe, Australia and New-Zealand. On July 10th 2013, it completed its acquisition of Runners Point Group. In today’s article, I will be looking at FL’s revenue, net income, dividend and valuation. At certain points, I will use DSW, Inc. (DSW) and Shoe Carnival, Inc. (SCVL) for comparison.
- [By Manikandan Raman]
Foot Locker, Inc. (NYSE: FL) is expected to report its first-quarter numbers on May 20, and Susquehanna expects EPS of $1.38, a penny below the Street's view. The brokerage also noted that the retailer is the least affected by Amazon.com, Inc. (NASDAQ: AMZN) within the retail sector.
Top 10 Industrial Conglomerate Stocks To Watch For 2016: National Steel Corporation(SID)
Companhia Siderurgica Nacional primarily operates as an integrated steel producer in Brazil and Latin America. The company principally produces carbon steel and various steel products. Its products include slabs, which are semi-finished products used for processing hot-rolled, cold-rolled, or coated coils and sheet products; hot-rolled products that comprise heavy-gauge hot-rolled coils and sheets, and light-gauge hot-rolled coils and sheets; cold-rolled products, including cold-rolled coils and sheets; and galvanized products consisting of flat-rolled steel coated with zinc or a zinc-based alloy. The company also offers tin mill products, which consist of flat-rolled low-carbon steel coils or sheets, such as tin plate, tin free steel,low tin coated steel, and black plate products. In addition, it engages in mining business by owning iron ore, limestone, dolomite, and tin mines comprising the Namisa property, Casa de Pedra mine, Arcos mine, and Santa Barbara mine; and invo lves in logistics business that includes railway and port facilities. Further, the company produces and sells cement; and engages in the generation of power plants. It sells its steel products as a raw material for various manufacturing industries, including the automotive, home appliance, packaging, construction, and steel processing industries. The company offers its products to customers directly through its sales force, as well as through distributors for subsequent resale. It also exports its products to Europe, Latin America, Asia, and North America. Companhia Siderurgica Nacional was founded in 1941 and is headquartered in Sao Paulo, Brazil.
- [By Lisa Levin]
In trading on Thursday, basic materials shares fell by 0.45 percent. Meanwhile, top losers in the sector included Companhia Siderurgica Nacional (ADR) (NYSE: SID), down 13 percent, and Dominion Diamond Corp (NYSE: DDC), down 9 percent.