Why Teva Pharmaceutical Industries (TEVA), Beacon Roofing Supply (BECN) and Westinghouse Air Brake Technologies Corp (WAB) Are 3 of Today’s Best Stocks

Advertisement

U.S. markets were down again for the fifth consecutive day, reacting to an 8% drop in the Chinese Shanghai Index overnight, and further declines in the commodity market.

Why Teva Pharmaceutical Industries, Beacon Roofing Supply and Westinghouse Air Brake Technologies Corp Are 3 of Today's Best StocksThe Shanghai Composite fell nearly 8.5%, the largest one day loss it has suffered in eight years. Although gold rose, Copper was down more than 1%, and crude oil fell more than 2%.

The Dow Jones Industrial Average was off 0.7%, while the S&P 500, which dipped below its 200 day moving average intra-day, was down 0.5%, and the Nasdaq fell 0.9%. Every sector was in the red except for Utilities.

But when the going gets tough, the tough go … shopping. That’s why Teva Pharmaceutical Industries Ltd (ADR) (TEVA), Beacon Roofing Supply, Inc. (BECN) and Westinghouse Air Brake Technologies Corp (WAB) were all strongly higher today and are three of today’s best stocks.

Here are the full stories:

Teva Pharmaceutical Industries Ltd (ADR) (TEVA)

Like a teenage boy who drops one girl to take another to the prom, TEVA decided to let go of its (hostile) pursuit of Mylan NV (NASDAQ:MYL) to purchase the generic drug business of Allergan PLC (NYSE:AGN) for $40.5 billion in cash and stock.

The acquisition will solidify TEVA as the largest manufacturer of generic drugs in the world, and helps Allergan to pay down debt and focus on its branded drugs.

Analysts noted that Allergan was a better match for Teva than Mylan because Allergan’s business is more high-end. It was not a good day for Mylan, which dropped 14%, but perhaps another suitor will come along for Mylan in the future. TEVA stock surged 16% higher today, while AGN stock was also up 6%.

Beacon Roofing Supply, Inc. (BECN)

Beacon was also in the mood to go shopping, and the second on our list of best stocks today acquired Roofing Supply Group, another roofing products distributor with a presence in 24 states across America, from Clayton, Dubilier & Rice, Inc.

The deal is valued at $1.1 billion, and will help Beacon to expand in stronger housing markets, like the markets in California, Florida or Texas. As part of the deal, Clayton, et. al will own some 15% of the combined companies and have two seats on the board of directors.

BECN stock touched a 52-week high this morning, and finished the day higher by more than 8%. 

Westinghouse Air Brake Technologies Corp (WAB) 

Wabtec, a company that makes locomotive brake systems, made a bid to acquire France’s Faiveley Transport S.A. today, in a cash and stock deal worth about $1.8 billion.

The deal will make Wabtec one of the largest rail-equipment companies in the world, with nearly $4.5 billion of revenue. Under the terms of the agreement, Wabtec will take over Faiveley’s debt, and will also own 51% of Faiveley shares.

WAB stock rose over 7% on the day.

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

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2015/07/best-stocks-teva-becn-wab/.

©2024 InvestorPlace Media, LLC