Why Wendys Co (WEN), Herbalife Ltd. (HLF) and Synageva Biopharma Corp (GEVA) are 3 of Today’s Best Stocks

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U.S. markets opened higher this morning, but then nose-dived throughout the day before finally inching back up in the last hour. Traders were reacting to worrisome comments made by Federal Reserve Chair Janet Yellen, while a selloff in the bond market drove yields higher.

WEN stockYellen told International Monetary Fund Director Christine Lagarde that she believes stock valuations are “quite high” and added “there are potential dangers there.” She did note, however, that the stock market does not look like it’s in a bubble yet.

Traders are also cautious ahead of Friday’s employment report. The ADP Employment Report had 169,000 jobs being added in April, well below expectations for 200,000. It’s the fewest jobs added since January 2014.

The Dow Jones Industrial Average lost 0.5% today, while the S&P 500 and the Nasdaq Composite were down 0.4%. Every sector except non-cyclical consumer goods finished lower.

Despite the drops, some stocks were still shooting higher on good news. Wendys Co (NASDAQ:WEN), Herbalife Ltd. (NYSE:HLF) and Synageva Biopharma Corp (NASDAQ:GEVA) were all sharply higher on good news to become three of today’s best stocks.

Wendys Co (WEN)

WEN stock gapped up 7.2% today after first-quarter earnings came in at 6 cents a share, beating the Zacks Consensus Estimate by a penny. Revenue of $466.2 billion was below the consensus estimate of $475.6 billion.

But the Street was appeared most excited about Wendys’ plan to streamline the company, including selling its bakery operations that produce the restaurant’s buns. The sale is coupled with a previously announced plan for WEN to sell 640 of its restaurants to franchisees.

The bakery is expected to be sold by the second quarter of 2015. WEN wants to reduce its company- operated restaurant ownership to only 5% by mid-2016.

WEN stock is up 24% this year.

Herbalife Ltd. (HLF)

HLF stock blasted 16.5% higher after posting first-quarter earnings of $1.29 a share, well ahead of the Street’s view of $1.01 a share. Revenue of $1.1 billion also beat expectations by $30 million.

HLF also raised its full-year guidance to a range from $4.30 per share to $4.60 per share, ahead of Wall Street estimates of $4.22 per share.

HLF stock had struggled as the company was accused of running a pyramid scheme, but since its recent court victory, the company’s stock has surged more than 50% over the past two months.

Synageva Biopharma Corp (GEVA)

It’s not every day that one sees a stock valued at nearly $100 double in share price in just one day — but that was the case for Synageva Biopharma. GEVA stock flew up 112.5% to more than $203, after it was acquired by Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN).

The combined stock and cash deal valued at $8.4 billion makes GEVA stock worth $230 a share — Alexion will pay $115 in cash and 0.6581 ALXN shares for every share of GEVA stock. The deal allows ALXN to expand its orphan product line for rare genetic diseases.

While GEVA investors celebrated their good fortune, ALXN stock pulled back 8% on the news.

As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/05/wendys-co-wen-herbalife-ltd-hlf-synageva-biopharma-corp-geva-3-todays-best-stocks/.

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