Why Bristol-Myers, Lululemon, and Foundation Medicine Are 3 of Today’s Best Stocks

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Wall Street began the week on a sour note, as oil prices slipped once again and a worried stock market went along in tandem. Crude oil lost more than 5%, as Goldman Sachs Group Inc (GS) cut its three month price estimate for West Texas Intermediate (WTI) from $70 to $41 per barrel, and slashed its full 2015 outlook from $73.75 to $47.15.

The Dow Jones Industrial Average was down the entire day, and settled on the closing bell down 0.54%. The S&P 500 was off by 0.81%, and the Nasdaq lost 0.84%. Most sectors were in the red, with only healthcare and telecommunications finishing just above break-even.

Several of the small-cap biotechs continued to perform strongly. Among them was Foundation Medicine Inc (FMI), which, along with Bristol-Myers Squibb Co (BMY) and Lululemon Athletica inc. (LULU) are 3 of today’s best stocks.

Bristol-Myers Squibb Co (BMY)

BMY stock got a 3% boost today, reaching a 14-year high, after announcing that their phase 3 trial of Opdivo, a drug to treat lung cancer, resulted in “superior overall survival” in the 272 advanced stage “small squamous cell small-cell” patients who took it.

Opdivo works in conjunction with the body’s immune system to fight off the cancer cells. This was the first time that a drug for lung cancer patients was shown to give a survival advantage. The Food and Drug Administration (FDA) had already given approval last month for Opdivo to be used for a deadly form of skin cancer that has spread throughout the body.

Lululemon Athletica inc. (LULU)

LULU stock gapped up nearly 7% after raising its fourth-quarter outlook for both sales and earnings, on the back of a strong holiday season. LULU raised its EPS outlook from 65-69 cents, to 71-73 cents, and expects sales to be $595 million- $600 million, an increase from prior guidance of $570 million to $585 million. The company’s EPS outlook comfortably beat analysts’ expectations of 69 cents.

Following the revised outlook, LULU stock was upgraded by analyst Sam Poser of Sterne Agee, who said he is no longer bearish on the Yoga apparel maker, raising his rating from underperform to neutral.

Foundation Medicine Inc (FMI)

FMI stock was by far the leading issue of the day, catapulting 95% higher on strong volume of 8.5 million shares, after announcing a broad strategic collaboration with Roche Holding Ltd. (VTX:ROG) to develop new treatment options for patients with cancer.

The specifics of the $780 million deal are that Roche will acquire more than 56% of FMI and will tender 15.6 million shares of FMI stock at $50 per share. This was huge for FMI stock, because prior to the announced deal, FMI had traded sideways between $20 and $23 per share for the last six months. 

 As of this writing, Ethan Roberts did not hold any positions in the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/01/bristol-myers-lululemon-athletica-foundation-medicine-3-todays-best-stocks/.

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