Why Puma Biotechnology Inc. (PBYI), MGM Resorts International (MGM) and Juniper Networks, Inc. (JNPR) Are 3 of Today’s Worst Stocks

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Stocks got the new week started on a relatively bullish foot, overcoming a small trip-up early on in the trading session. When all was said and done, the S&P 500 finished the slow news day up 0.21%, at 2,111.73.

It wasn’t a mildly bullish day for all stocks, however. MGM Resorts International (NYSE:MGM), Puma Biotechnology Inc. (NYSE:PBYI) and Juniper Networks, Inc. (NYSE:JNPR) couldn’t fight the selling tide, ending Monday uncomfortably deep in the red.

Juniper Networks (JNPR)

Why Puma Biotechnology Inc. (PBYI), MGM Resorts International (MGM) and Juniper Networks, Inc. (JNPR) Are 3 of Today's Worst StocksA wave of acquisitions within the technology sector isn’t likely to extend all the way Juniper Networks, contrary to recent speculations. That’s the opinion of MKM Partners analyst Michael Genovese, anyway, who cut his rating on JNPR from a neutral to an outright sell on Monday.

His concern is simply that the consensus revenue and earnings estimates for this year are too optimistic. He noted:

“We are not worried about Juniper’s ability to make 2Q15 numbers, but we find the 3Q15 and 4Q15 hurdles for the company to be aggressive…Over the past four years, fourth quarter sequential revenue growth has averaged 2.2%. In other words, the sequential expectations for 2H15 are at the very high end of what the company has been able to achieve in recent years.”

Exacerbating the effect of the downgrade of JNPR is the fact that the stock has been gaining on the heels of an expected acquisition by Ericsson (NASDAQ:ERIC). It was only late last week that Credit Suisse — along with others — pegged Juniper Networks as a smart target for Ericsson, and that rumor has been circulating for a while. The bulk of the near-3% tumble from JNPR may have mostly been driven by shock.

MGM Resorts International (MGM)

Just when you think the news from Macau’s gambling industry can’t get any worse, surprise! It’s worse, taking down casino stocks like MGM Resorts International and Wynn Resorts, Limited (NASDAQ:WYNN).

The prod for the pullbacks was a report that gambling revenue from the Chinese enclave fell 37% last month. Fanning the bearish flames was a report from Fitch posted on Friday suggesting Macau’s gaming industry is on pace to see a 29% drop in its revenue for the current year.

Shares of Wynn Resorts and MGM Resorts International shares doled out the most pain, both falling 2.3% on Monday on high volume.

Puma Biotechnology (PBYI)

Most of the time a presentation at the annual ASCO conference leads to a little — or a lot — of bullishness for that company’s stock. Just ask the folks in charge of ImmunoGen (NASDAQ:IMGN), who saw IMGN shares rocket 60% higher on Monday after touting some good news regarding their ovarian cancer drug at 2015’s ASCO event on Saturday.

Sometimes though, pulling back the curtain on your drug’s results at an ASCO conference can backfire, sending your stock lower. Just ask the management team at Puma Biotechnology, who watched PBYI tumble more than 13% on Monday following the company’s presentation at this past weekend’s event.

The drug in question is PB-272, or neratinib, which is being developed by PBYI as a treatment for breast cancer. While the benefit of using the drug was slightly better than the control/comparison, the diarrhea the drug caused in 40% of the patients using it could only be described as debilitating … perhaps even making neratinib unusable.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/06/puma-biotechnology-pbyi-mgm-resorts-international-mgm-juniper-networks-jnpr/.

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