8 New Stocks to Watch: GrubHub, IMS Health on Deck

Last week was a tough one for IPOs, but Wall Street is getting another large batch of new stocks this week regardless

     

It finally happened. The IPO market finally took a couple shots.

After a rip-roaring 2014 for new stocks on the market, IPOs were less than warmly welcomed last week, as four of 11 deals finished breakeven or even negative. Another two boasted only single-digit returns in the black.

Of course, the worst performer was King Entertainment Media (KING), which lost about 20% of its value in a dreadful IPO. Even though the company has been growing at a breakneck pace — and is even profitable — Wall Street was worried that its Candy Crush Saga momentum is starting to wane.

Still, there’s no sign of a slowdown on the offerings front, as eight new stocks are on deck, including standouts GrubHub and IMS Health.

So, here’s a closer look at these new stocks to watch as they go live this week, in alphabetical order:

New Stocks to Watch: Corium International (CORI)

Expected Offering Date: Wednesday

Corium International is a commercial-stage biotech company that is focused on transdermal and transmucosal delivery systems, which include four Crest Advanced Seal Whitestrips products. Going forward, Corium has three more drugs that are pending marketing applications with the U.S. Food and Drug Administration.

Some of Corium’s key partners include Procter & Gamble (PG), Teva Pharmaceuticals (TEVA), and Agile Therapeutics.

From 2012 to 2013, revenues grew from $42.9 million to $50.3 million, but the loss expanded from $5.4 million to $13.9 million.

Corium plans to issue 5.5 million shares on the Nasdaq under the ticker “CORI” at a range of $10 to $12. Lead underwriters include Jefferies & Co. and Leerink Partners.

New Stocks to Watch: Five9 (FIVN)

Expected Offering Date: Thursday

Five9 operates a cloud platform for contact centers. The system is highly scalable, handling more than 3 billion transactions for over 2,000 clients per year, and also boasts features such as chat, web, social and mobile apps. Five9 claims that its offering is much more cost-effective than traditional software approaches.

From 2011 to 2013, revenues have nearly doubled, going from $43.2 million to $84.1 million. However, losses have climbed too, with the company bleeding $7.9 million in 2011 but $31.3 million in 2013.

Five9 plans to issue 10 million shares on the Nasdaq under the ticker “FIVN” at a range of $9 to $11. Lead underwriters include JPMorgan (JPM), Barclays (BCS) and Bank of America Merrill Lynch (BAC).

New Stocks to Watch: GrubHub (GRUB)

Expected Offering Date: Thursday

GrubHub has a system that allows independent restaurants to leverage mobile apps to better manage takeout orders. GrubHub processes more than 135,000 orders on a daily basis and has a network of about 28,800 locations.

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