Today is another great day in US Markets as it seems as though the Greek and Chinese fueled correction is over. I was digging through healthcare earlier today and I was able to dig up a few opportunities that I figured I would share. Here’s what I found
Anacor Pharmaceuticals Is Down, But Not For Long
Anacor Pharmaceuticals Inc (NASDAQ: ANAC)
Yesterday, Anacor Pharmaceuticals stock had an awesome day in the market; gaining over 50% in the trading session. The gains were caused by the release of data from two Phase 3 studies into Crisoborole Topical Ointment for the treatment of mild-to-moderate atopic dermatitis. As you would imagine from the growth we saw in the stock, the results of the study were overwhelmingly positive. However, today’s movement isn’t quite what we saw yesterday. As a matter of fact, ANAC is currently (12:25) trading at $128.43 per share after a loss of 2.65% so far today. However, I have to say that I’m not concerned at all about today’s declines.
The first thing that we have to remember in scenarios like this is the fact that price movements in the market happen through a series of overreactions. So, when the positive news came out yesterday, it’s no surprise that investors overreacted; pushing Anacor’s value higher than it should have gone. As a result, we’re seeing a bit of a slight correction today. Nonetheless, the positive news that came out yesterday is great news that is likely to prove to be profitable. So, it may be a good idea to buy today’s pullback as this one is likely to grow long term.
Johnson & Johnson Beat Earnings Expectations
Johnson & Johnson (NYSE: JNJ)
Johnson & Johnson released their second quarter earnings report as expected. While analysts expected the company to produce $1.67 per share in earnings, the company came in with earnings at $1.71 per share; beating expectations by $0.04. They also beat expectations with regard to revenue; coming in at $17.8 billion for the quarter compared to the expected $17.76 billion. Here’s what Alex Gorsky, CEO of JNJ had to say about the earnings…
“Our solid sales and earnings results in the quarter reflect the strong underlying growth we’re seeing across the enterprise…Our diverse portfolio and scale are enabling this performance, and we’ve continued to invest in building a robust enterprise pipeline that will drive our growth over the long term. Our passion to deliver transformational new medicines and products reflects the ongoing commitment of our dedicated employees to improve health and well-being.”
Surprisingly however, investors haven’t given a positive response to the report. Unfortunately, JNJ is currently (12:36) down 0.8%; trading at just $99.47 per share. Nonetheless, I always have faith in companies that prove their ability to produce earnings. So, I’m expecting to see growth from JNJ relatively soon.
Gilead Sciences Earnings Are Coming Soon | This Will Prove To Be A Catalyst
Gilead Sciences, Inc. (NASDAQ: GILD)
Finally we have Gilead Sciences; a stock that I’ve talked about quite a bit recently. The reality is that thanks to AbbVie’s (ABBV) entrance in the HCV market, investors have been afraid to push the value of this stock up. Nonetheless, the intrinsic value of the company continues to grow; causing its PE ratio to remain relatively low…around 10. This means that Gilead Sciences is an incredibly discounted stock. Nonetheless, I think that’s going to change on July 22nd. You see, investors have been awaiting another earnings report to see how much ABBV has affected GILD; and I don’t think that affect is going to prove to be very big. With that said, Gilead Sciences is likely to produce an overwhelmingly positive earnings report; causing the bulls to come out to play. So, if you’re looking to get in on the fray, you may want to do it before the release of the company’s earnings!
Do You Know Of Any Others?
Do you know of any other healthcare stocks that are presenting strong opportunities? If so, let us know in the comments below!