Why Celgene Corporation (CELG), Nortek Inc (NTK) and Valeant Pharmaceuticals Intl Inc (VRX) Are 3 of Today’s Best Stocks

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U.S. stocks rose Wednesday, boosted by the release of the most recent Federal Open Market Committee (FOMC) meeting minutes, which revealed that the Federal Reserve is still concerned about the U.S. labor market.

Why Celgene Corporation (CELG), Nortek Inc (NTK) and Valeant Pharmaceuticals Intl Inc (VRX) Are 3 of Today's Best StocksBetween the Fed’s jobs market concerns and the recent Brexit decision, some traders believe it is unlikely that the central bank raises rates this year. The S&P 500 added 0.54% while the Dow Jones Industrial Average rose 0.44% The Nasdaq Composite gained 0.75%.

On a solid day for U.S. stocks, Celgene Corporation (NASDAQ:CELG) Nortek Inc (NASDAQ:NTK) and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) were among Wednesday’s standout performers.

Celgene Corporation (CELG)

Shares of biotechnology giant Celgene Corporation rose 4.3% on above-average volume after Jefferies named CELG one of its top growth stocks to buy for the rest of 2016. Jefferies has a $140 price target on CELG, implying significant upside from where CELG shares closed today.

“Celgene’s blockbuster blood cancer drug Revlimid continues to dominate. Pomalyst sales also continue to be solid. Cancer drug Abraxane is also growing at a respectable rate, so the company continues to have a strong lineup of top-selling drugs,” reports 24/7 Wall Street.

Shares of CELG are off about 13% year-to-date as the broader biotechnology sector has struggled amid election year posturing that has seen candidates from both parties levy harsh rhetoric against high drug prices. Jefferies sees little Brexit impact for CELG and biotechnology stocks, according to 24/7 Wall Street.

Nortek Inc (NTK)

Nortek Inc, the maker of home security systems and ventilation devices, surged 38.6% on over 15 times the average daily volume after receiving a takeover offer. Britain’s Melrose Industries will pay $2.81 billion, including assumed debt, to acquire NTK.

Melrose and NTK have been in talks for several months. NTK products are found in 80% of U.S. homes, according to Reuters.

Some Wall Street analysts believe it is possible another suitor could make a run at NTK. The Reuters article points out that following the Brexit, some European companies could look to acquire North American firms as a way of diversifying revenue streams away from Europe.

Valeant Pharmaceuticals Intl Inc (VRX)

Shares of Valeant Pharmaceuticals Intl Inc, the controversial specialty pharmaceuticals makers, soared nearly 15.6% on heavy turnover after an analyst offered up one of the most bullish price targets on VRX in recent memory.

In a note out Wednesday, Rodman & Renshaw analyst Raghuram Selvaraju said there are enough looming catalysts to lift shares of VRX to $90. VRX closed just above $23 today and are down about 90% over the past year amid a series of accounting and other financial missteps and executive shuffling.

“Multiple regulatory decisions slated for this month. In our view, July is shaping up to be a busy month for Valeant, given the potential for three regulatory decisions in the coming weeks. On July 19, 2016, Valeant is slated to have its Biologics License Application (BLA) for brodalumab, an investigational anti-interleukin-17 (antiIL-17) monoclonal antibody for the treatment of moderate-to-severe plaque psoriasis,” according to part of the Rodman & Renshaw note posted by Barron’s.

Rodman & Renshaw has a “buy” rating on VRX.

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/2016/07/celgene-corporation-celg-nortek-inc-ntk-valeant-pharmaceuticals-intl-inc-vrx-3-todays-best-stocks/.

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