Why Baker Hughes Incorporated (BHI), Boston Scientific Corporation (BSX) and Dreamworks Animation Skg Inc (DWA) Are 3 of Today’s Best Stocks

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Stocks fought off some post-earnings slumps by some big-name social media and technology companies to notch another round of modest gains, but that weakness in by social media and technology names sent the Nasdaq Composite lower by 0.51%, the index’s fifth consecutive loss.

Why Baker Hughes Incorporated (BHI), Boston Scientific Corporation (BSX) and Dreamworks Animation Skg Inc (DWA) Are 3 of Today's Best StocksThe S&P 500 added 0.16% while the Dow Jones Industrial Average rose by 0.28% after the Federal Reserve left interest rates unchanged. However, the door is open for a rate hike in June. Bond traders say September is more likely for this year’s first rate hike, with another following in December.

Away from Fed theories and tech disappointment, Baker Hughes Incorporated (NYSE:BHI), Boston Scientific Corporation (NYSE:BSX) and Dreamworks Animation Skg Inc (NASDAQ:DWA) are easily three of today’s best stocks.

Baker Hughes Incorporated (BHI)

Oil services provider Baker Hughes climbed 2.5% today as oil prices topped $45 per barrel for the first time since November. Also helping BHI shares was some bullish chatter from Citigroup, which said BHI and Halliburton Company (NYSE:HAL) are both buys even if their merger falls apart. Citi reiterated “buy” ratings on BHI and HAL, the second-largest provider of oilfield services.

There have been lingering concerns that a combined HAL and BHI would be anticompetitive for the oil services industry. While the companies have discussed asset sales, doubt remains regarding the marriage coming to pass.

“We do not believe so as the technology remains (recall HAL wants BHI’s directional drilling, bits, artificial lift and chemicals while their completion products are strong). Also attrition rates are low given the downturn so while morale may have suffered, the staff largely remains. Material restructuring at BHI is also restricted by the merger agreement but significant costs (likely ~$500 mm) could be extracted. If achieved, the incrementals could be impressive during recover,” according to part of a Citi note posted by Barron’s.

Boston Scientific Corporation (BSX)

Shares of medical device maker Boston Scientific surged 11.2% on volume that was more than five times the daily average after the company delivered better-than-expected first-quarter results. BSX lifted its full-year revenue guidance to $8.08 billion to $8.23 billion from $7.9 billion to $8.1 billion.

For the first quarter, BSX earned $202 million, or 15 cents per share. Excluding items, BSX earned 28 cents a share, beating the 24 cents per share Wall Street expected. BSX said revenue increased to $1.96 billion from $1.77 billion. Analysts expected BSX to post revenue of $1.91 billion.

Dreamworks Animation Skg Inc (DWA)

Dreamworks Animation soared 18.7% on volume that was more than 10 times the daily average on news that the maker of animated movies could be sold to cable giant Comcast Corporation (NASDAQ:CMCSA) for as much as $3 billion.

A deal of $3 billion for DWA would represent a 38% premium to where DWA shares closed Tuesday. Citing an unidentified source, the Los Angeles Times reports CMCSA is in talks to acquire DWA, but that the discussions are not finalized.

In the Times article, analysts appear split on whether CMCSA will really buy DWA, with one questioning the deal’s logic while another highlights DWA’s China presence and content partnerships as possible sources of allure.

At the time of this writing, Todd Shriber did not own any of the aforementioned securities.

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Todd Shriber has been an InvestorPlace contributor since 2014.


Article printed from InvestorPlace Media, https://investorplace.com/2016/04/baker-hughes-incorporated-bhi-boston-scientific-corporation-bsx-dreamworks-animation-skg-inc-dwa-3-todays-best-stocks/.

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