Why Cepheid (CPHD), Spectra Energy Corp. (SE) and Navistar International Corp (NAV) Are 3 of Today’s Best Stocks

M&A Monday ... er, Tuesday ... lifted the fortunes of anyone holding CPHD, NAV and SE

With bets dwindling that a Federal Reserve rate hike is imminent, the dollar fell Tuesday, lifting stocks soundly in the process. Bond yields fell following last Friday’s tepid August jobs report.

stock market today

The S&P 500 finished the day up 0.3% while the Dow Jones Industrial Average advanced 0.25%. The Nasdaq Composite gained half a percent.

The return of Merger Monday Tuesday elevated a number of companies. Cepheid (NASDAQ:CPHD), Navistar International Corp (NYSE:NAV) and Spectra Energy Corp. (NYSE:SE) were among the day’s best stocks. We’ll take a quick look at the specifics of each:

Cepheid (CPHD)

Shares of diagnostics maker Cepheid surged 52.6% on more than 39 times the average daily volume on news that industrial conglomerate Danaher Corporation (NYSE:DHR) will acquire CPHD for $4 billion. Danaher’s offer includes the assumption of Cepheid’s debt.

Danaher is acquiring Cepheid to bolster its diagnostics business. California-based CPHD makes systems and tests used in genetic testing. “Cepheid had revenue of $539 million last year, and is expecting $618 million to $635 million in 2016,” according to Fortune.

Still, despite Cepheid’s promise, shares had difficulty showing that this year. CPHD was off some 6% this year on high volatility, and amid a broadly higher market.

The deal, which Danaher expects will be accretive to earnings, is expected to close in the fourth quarter.

Also, the acquisition wasn’t just a boon for Cepheid. Dynavax Technologies Corporation (NASDAQ:DVAXsoared on the news, as didCoLucid Pharmaceuticals Inc (NASDAQ:CLCD).

Navistar International Corp (NAV)

Truck maker Navistar International Corp soared 40.6% on more than 15 times the stock’s usual volume on reports that German automotive giant Volkswagen AG (OTCMKTS:VLKAY) took a 16.6% stake in the company. Legendary investor Carl Icahn is one of NAV’s shareholders.

Illinois-based Navistar “expects the alliance to be accretive beginning in the first year, and for cumulative synergies for Navistar to ramp up to at least $500 million over the first five years,” the company said in a statement. “By year five, it expects the alliance will generate annual synergies of at least $200 million for Navistar. This annual run rate is expected to grow materially thereafter as the companies continue to introduce technologies from the collaboration.”

This, from a company that many felt was on its way to bankruptcy just a few years ago.

Analysts like Volkswagen’s partnership with Navistar, as it bolsters NAV’s financial recovery efforts. Some also believe this could set the stage for Navistar to eventually become a takeover target.

Spectra Energy Corp. (SE)

Energy infrastructure company Spectra Energy climbed 13.4% on more than 15 times the average daily volume on news that Canadian rival Enbridge Inc (NYSE:ENB) will acquire the company in an all-stock valued at nearly $28 billion.

The Enbridge deal for Houston-based Spectra will create the largest North American energy infrastructure firm. Enbridge is paying $40.33 per share of SE stock, or an 11.5% premium to Spectra’s closing price last Friday.

“Enbridge will issue about 694 million new shares and take on about $22 billion of Spectra debt. Enbridge also said it planned to divest about $2 billion of non-core assets over the next year,” according to Reuters.

Enbridge investors will own 57% of the new company.

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

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Article printed from InvestorPlace Media, https://investorplace.com/2016/09/cepheid-cphd-navistar-international-corp-nav-spectra-energy-corp-se-3-todays-best-stocks/.

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