Fly News Breaks for March 19, 2018
UNH, LH, DGX
Mar 19, 2018 | 07:36 EDT
Canaccord analyst Mark Massaro raised his price target on Quest Diagnostics (DGX) to $115 from $113 following investor meetings with Shawn Bevec, Quest's Executive Director of IR. Massaro, who reiterated a Buy rating, views Quest as an underappreciated large cap "cash cow" well positioned to consolidate labs, particularly in the $48B hospital lab market, where he says it has a "competitive edge" over LabCorp (LH). Additionally, Massaro said the fate of the UnitedHealth (UNH) contract, an exclusive to LabCorp but is set to expire at the end of the year, remains a potential near-term positive catalyst for Quest, noting that Quest is in "active dialogue" with UnitedHealth executives at the highest levels" and at Optum. Though UnitedHealth could renew the deal with LabCorp, Massaro believes it is likely that the contract will open up to both LapCorp and Quest.
News For DGX;LH;UNH From the Last 2 Days
Oct 16, 2018 | 12:00 EDT
Stocks opened sharply higher thanks to solid earnings reports from some of the country's largest corporations, including three Dow components. Also helping was the JOLTS report, which showed a record number of jobs were available in August. Each of the major averages is higher by at least 1%, with the Nasdaq leading the way with a gain of nearly 2%. ECONOMIC EVENTS: In the U.S., industrial production rose 0.3% in September, bringing capacity use to 78.1%. The NAHB housing market index rose 1 point to 68 in October after holding at 67 in the prior two months. The JOLTS report showed job openings rose 59,000 to about 7.14M in August, a new record high. COMPANY NEWS: Two of the biggest names in healthcare, UnitedHealth (UNH) and Johnson & Johnson (JNJ), are rising by 3.5% and 2%, respectively, following earnings reports from the Dow members. Both reported better than expected earnings and revenue and each raised their respective fiscal year outlooks... Also on the earnings front, fellow Dow member Goldman Sachs (GS) reported better than expected earnings and revenue, stating that its "solid results" in the third quarter were driven by contributions from across its "diversified client franchise." Goldman's year-to-date earnings per share is the highest in its history and year-to-date return on equity is the highest in nine years, noted CEO David Solomon. Banking peer Morgan Stanley (MS) reported what Oppenheimer analyst Chris Kotowski called a "clean beat," leading him to raise his 2019 earnings per share estimate and upgrade the stock to Outperform from Perform... Shares of Adobe (ADBE) are up 8% after the company gave preliminary guidance for fiscal 2019 that JPMorgan analyst Sterling Auty said "gives enough ammunition" to deliver $8 in earnings per share, "satisfying any expectations" going into the analyst meeting held as part of the Adobe MAX event. MAJOR MOVERS: Among the noteworthy gainers was Noodles & Company (NDLS), which rose 15% after SunTrust analyst Jake Bartlett upgraded the stock to Buy from Hold and raised his price target to $15 from $11. Also higher was Tesla (TSLA), which gained 4% after Bloomberg reported that U.S. District Judge Alison Nathan approved Tesla CEO Elon Musk's $20M settlement with the Securities and Exchange Commission regarding claims that he misled investors in tweets about taking the company private. Among the notable losers was Jeld-Wen (JELD), which fell 20% after the door and window maker reported weak preliminary Q3 results and announced the departure of CFO Brooks Mallard. Also lower was Grainger (GWW), which dropped 13% after reporting quarterly results. INDEXES: Near midday, the Dow was up 340.39, or 1.35%, to 25,590.94, the Nasdaq was up 136.62, or 1.84%, to 7,567.37, and the S&P 500 was up 37.99, or 1.38%, to 2,788.78.
Oct 16, 2018 | 09:09 EDT
William Blair analyst Ryan Daniels attributes the "fairly lackluster" stock performance of Tivity Health (TVTY) to continued worries regarding UnitedHealth's (UNH) decision to insource more senior fitness plans to its own proprietary offering. Still, United will work with Tivity's SilverSneakers program in 28 states for individuals and will offer SilverSneakers to Medicare Advantage group members in all 50 states, Daniels tells investors in a research note. As open enrollment begins for the 2019 Medicare Advantage season, the analyst believes it also is an "opportune time to take a fresh look at Tivity Health." He views the stock's current risk/reward as attractive and keeps an Outperform rating on the name.
Oct 16, 2018 | 09:04 EDT
HIGHER: Adobe (ADBE), up 6%, after backing its Q4 guidance and providing its FY19 outlook... SendGrid (SEND), up 12% after agreeing to be acquired by Twilio (TWLO)... Plug Power (PLUG), up 4% after raising FY18 revenue guidance... Pluristem (PSTI), up 4% after announcing plans to initiate FDA-cleared EAP for PLX-PAD with WideTrial... Hanwah Q Cells (HQCL), up 17% after agreeing to be acquired by Hanwha Solar. UP AFTER EARNINGS: Goldman Sachs (GS), up 1%... United Health (UNH), up 2%... Morgan Stanley (MS), up 3%. DOWN AFTER EARNINGS: BlackRock (BLK), down 3%. LOWER: Palo Alto Networks (PANW), down 2% after after naming a new president and backing Q1 guidance... India Globalization Capital (IGC), down 13% after filing a $100M mixed securities shelf... Twilio, down 3% after agreeing to deal to buy SendGrid.
Oct 16, 2018 | 08:50 EDT
Shares were last up over 2.1% to $265.94. At that price next resistance is at $266.94. Support is at the $265 area. A move back above the $267.40 area today that holds above that level would put price back above the uptrend support line in place since May of this year. This would be technically bullish for future price.
Oct 15, 2018 | 12:49 EDT
Notable companies reporting before tomorrow's open, with earnings consensus, include Johnson & Johnson (JNJ), consensus $2.03... UnitedHealth (UNH), consensus $3.29... Goldman Sachs (GS), consensus $5.38... Morgan Stanley (MS), consensus $1.02... BlackRock (BLK), consensus $6.84... Prologis (PLD), consensus 35c... Progressive (PGR), consensus $1.12... W.W. Grainger (GWW), consensus $3.94... Omnicom (OMC), consensus $1.21... Comerica (CMA), consensus $1.76... J.B. Hunt (JBHT), consensus $1.39... Domino's Pizza (DPZ), consensus $1.75... First Horizon National (FHN), consensus 36c.