Gasoline futures soared Monday as Tropical Storm Harvey continued to wreak havoc on Texas, knocking major Gulf Coast refineries out of action.
And while the storm is also expected to curtail offshore crude oil production in the Gulf of Mexico, crude futures are under pressure. Thats because the supply impact is more than offset by the hit to demand for crude by the refinery shutdowns.
See: Hurricane Harvey highlights biggest impact of shale-oil revolution
Best Safest Stocks To Own For 2018: Edwards Lifesciences Corporation(EW)
- [By Lisa Levin]
Edwards Lifesciences Corp (NYSE: EW) announced plans to buy Valtech Cardio for $340 million in cash and stock. The company also announced a $1 billion buyback plan.
Epizyme Inc (NASDAQ: EPZM) disclosed that it has received Fast Track designation for tazemetostat.
Athene Holding Ltd. (NYSE: ATH) reported that it has priced its 23.8 million share IPO between $38 per share and $42 per share.
Lannett Company, Inc. (NYSE: LCI) reported the approval for its Metaxalone Tablets USP, 800 mg.
- [By Ben Levisohn]
Shares of Edwards Lifesciences (EW) jumped to the top of the S&P 500 today after the medical-device maker offered its 2017 guidance this morning at its investor day.
Shares of Edwards Lifesciences gained 6.7% to $89.31 today, while the S&P 500 rose 0.2% to 2,246.19.
Wells Fargo’sLarry Biegelsen offers his take on Edwards Lifesciences’ guidance:
Edwards Lifesciences Corporation (EW-$83.73; Outperform) provided its 2017 outlook this morning (12/8) ahead of its investor meeting today. As expected, the company highlighted its robust pipeline which should drive strong growth for years to come. However, the company now expects Q4 16 revenue to come in at the low end of the guidance range due to currency and weakness in surgical heart valves. The 2017 guidance was generally strong on the top and bottom line, with both bracketing consensus.
For 2017, EW expects sales of $3.0-3.4B and 10-14% underlying growth. This compares to consensus of $3.3B and 12.3% underlying growth (were at 12.6%)… For 2017 EPS, EW expects $3.30-3.45 which includes $0.10 dilution from the Valtech deal (something we highlighted in our preview) and $0.08-0.10 benefit from the accounting change for stock based compensation. Backing these two items out implies guidance of about $3.30-3.45 which compares to consensus of $3.40 and our estimate of $3.41…
As expected, the pipeline updates were highly positive. While the initial reaction to the Q4 guidance will likely be negative, we are highly confident that the strong 2017 guidance and robust pipeline update will be the main takeaways from the meeting today.
No negativity here: Edwards Lifesciences’ market capitalization rose to $19.1 billion today from $17.9 billion yesterday. It reported net income of $495 million on sales of $2.5 billion in 2015.
- [By Chris Lange]
The stock posting the largest daily percentage gain in the S&P 500 ahead of the close Wednesday was Edwards Lifesciences Corp. (NYSE: EW) which jumped about 10% to $108.91. The stocks 52-week range is $81.12 to $1221.75. Volume was roughly 7.3million which is above the daily average of around 2.2 million shares.
- [By Ben Levisohn]
Edwards Lifesciences (EW) soared to the top of the S&P 500 today after the medical-device company beat earnings and revenue forecasts, and raised its full-year guidance.
Edwards Lifesciencesgained 11% to 109.33, while the S&P 500 dipped 0.1% to 2,387.45.
Mogran Stanley’s David Lewis andScott Wang contend that that Edwards Lifesciences is “back on track.” They explain:
US sequential acceleration returns to the prior curve and debunks the bear case. Sequential growth in US [transcatheter aortic valve replacement, or TAVR,] in 1Q17 was ~12%, more in line with the ~13.5% average growth rate seen in the five quarters leading up to 3Q16. It’s hard to pinpoint the drivers, but we see several dynamics, including: (i) underlying device utilization thus far in 1Q, (ii) faster ramp at new hospitals where one additional TAVR per center is worth $15mn (~65% of the US upside we saw this quarter), and (iii) less acute competitive pressure from Medtronic (MDT) on larger valve sizes. SURTAVI likely played a limited role but management did not rule it out. Guidance implies a more conservative q/q US growth of ~3% for the rest of the year vs the ~12% this quarter, but underlying strength in the quarter is a material shift in US growth and intermediate penetration. As we stated in our preview, we favored the risk reward into the quarter given achievable expectations and the >20 point lag vs Intuitive YTD and would expect significant recovery tomorrow. Momentum likely continues into 2Q17 as signs of improving intermediate risk penetration provide important offsets to increased competition from Boston in early-2018 before mitral takes hold.
Edwards Lifesciences’ market capitalization rose to $23.1 billion today from $20.9 billion yesterday.
Best Safest Stocks To Own For 2018: Tucows Inc.(TCX)
- [By Lisa Levin]
Tucows Inc. (USA) (NASDAQ: TCX) shares shot up 17 percent to $42.45 after the company announced plans to acquire eNom from Rightside for $83.5 million.
- [By Anders Bylund]
Shares of Tucows (NASDAQ:TCX) rose 12.1% in March 2017, according to data from S&P Global Market Intelligence.
The provider of online business services and a budding bundle of mobile and fiber-optic communications products started March with a bang, announcing a brand-new $40 million share buyback program. For a company with a $476 million market cap at the time, that’s a pretty serious and shareholder-friendly commitment.
Best Safest Stocks To Own For 2018: Black Diamond, Inc.(BDE)
- [By Jim Robertson]
At the beginning of the week, our Under the Radar Moversnewsletter suggested small cap sporting & outdoor goods stock Black Diamond Inc (NASDAQ: BDE) as a short/bearish trade:
Best Safest Stocks To Own For 2018: Unilever NV(UN)
- [By Teresa Rivas]
Earlier this year, Unilever (UN) recently declined Kraft Heinz (KHC) merger bid. That means that if the company still wants to do a deal, Mondelez International (MDLZ) and PepsiCo (PEP) are the next logical partners, writes Susquehannas Pablo Zuanic.
Zuanic upgraded Pepsi from Neutral to Positive today and raised his price target from $118 to $132. He writes that a Pepsi deal would have more strategic merits, hence his upgrade (as he emphasizes that not much has changed in terms of fundamentals for the firm).
More detail from his note:
With investors apparently seeing MDLZ as the next likely KHC target, and Coca-Cola (KO) the next Anheuser-Busch (BUD) target, PEP shares have lost visibility and now trade at a 25% discount to KO on apples-to-apples comps. We see value here, on franchise strength, efforts to align the F&B portfolio with consumer health trends, and the growing optionality value of a joint KHC/BUD bid for PEP. We argue that, together, the Kendall Jenner commercial, the Aspartame to-be-or-not-to-be zigzagging, the new, new, new alt low-cal cola (Pepsi Zero sugar), the ongoing underperformance in U.S. CSDs (25% only of the company), the lack of scale in non-CSD NARTDs vs. KO (other than Gatorade), and now talk of PEP buying Brazilian dairy company Vigor S.A. (a JBS subsidiary that would better fit KHC or ULVR), all paint a picture of a company still struggling to set a new direction (with all due respect). In this regard, we think PEP may be more vulnerable than MDLZ to a KHC bid (jointly done with BUD). We also see greater strategic fit for KHC with PEP Food/Snacks (than with MDLZ), and argue that PEP Beverages fits BUD better than KO, as the PEP bottling operations in key regions (including NA) remain in the hands of PEP (KO, on the other hand will be fully refranchised by end of 2017). So we are upgrading PEP to Positive with a $132 price target by December 17. Yes, the Unilever rebuff
- [By Lisa Levin]
In trading on Tuesday, industrial shares fell by 0.04 percent. Meanwhile, top losers in the sector included Unilever N.V. (ADR) (NYSE: UN), down 8 percent, and Magal Security Systems Ltd. (USA) (NASDAQ: MAGS), down 6 percent.