The stock market continued to rally Wednesday, as oil got its mojo back to the tune of 3%-plus.
Finding the best stocks on a day like this is as simple as loading up a chart of the entire stock market, closing your eyes and jamming your finger blindly into the screen.
While that wasn’t my exact methodology, these three stocks stood out among all the green on the Street today, and that’s why Tesaro Inc (NASDAQ:TSRO), Clovis Oncology Inc (NASDAQ:CLVS) and Twilio Inc (NYSE:TWLO) are three of today’s best stocks.
Tesaro Inc (TSRO)
Tesaro finished the day with a whopping 108% gain as its ovarian cancer treatment, niraparib, managed to effectively slow the growth of tumors in patients undergoing platinum chemotherapy.
I wrote about TSRO stock earlier today, noting that the gains could be a bit too optimistic, as Tesaro’s treatment has not yet been approved by the Food and Drug Administration.
Still, if Tesaro reports more positive news from the complete set of data from the trial near the end of the year, the reality of niraparib becoming the first PARP inhibitor treatment for recurrent ovarian cancer comes closer to fruition.
Clovis Oncology Inc (CLVS)
Clovis Oncology, another biotech, soared almost 22% on the strength of Tesaro’s late-stage ovarian cancer treatment. That’s because Clovis Oncology is working on an ovarian cancer treatment with exactly the same target as niraparib, Tesaro’s treatment.
The thinking goes that niraparib’s headway in stalling the growth of cancerous tumors puts Clovis’ rucaparib drug on the fast track for FDA approval. Phase-2 trials of rucaparib fared well, and CLVS started a rolling application for FDA approval in patients whose previous treatments didn’t take.
That said, CLVS is a much riskier bet than TSRO, whose niraparib treatment is closer to the finish line than Clovis’ rucaparib.
Twilio Inc (TWLO)
Recent initial public offering Twilio took investors for a 24% ride Wednesday, becoming a clear front runner for the best IPO of 2016.
TWLO stock is currently up 50% since going public last week, and has gained nearly 40% of that in the past two days. Part of the strength stems from bullish commentary by CNBC’s Jim Cramer:
“Twilio’s huge first-day move suggests that some of these Silicon Valley unicorns are real businesses with real value, not just mythical creatures with absurd valuations, and the market may be willing to pay up for growth again.”
Still, TWLO stock, which gets 15% of its sales from Facebook Inc‘s (FB) WhatsApp, is better bought after the exuberance wanes.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.