Thursday’s Top 3 Stocks to Watch: JPM, HGSI, ABT
JPMorgan Chase & Co. (NYSE: JPM)
JPMorgan Chase & Co. (JPM) is a financial holding company providing a range of financial services worldwide. The Company operates in six segments: Investment Bank, which provides investment banking products and services, including advising on corporate strategy and structure, capital raising in equity and debt markets, risk management, market-making in cash securities and derivative instruments, and prime brokerage and research; Commercial Banking (CB), which provides lending, treasury services, investment banking, and asset management services to corporations, municipalities, financial institutions, and not-for-profit entities; Treasury & Securities Services (TSS), which offers transaction, investment and information services; Asset Management (AM), which offers investment and wealth management services to institutions, retail investors, and high-net-worth individuals, as well as global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity, including money market instruments and bank deposits; provides trust and estate, banking, and brokerage services; and retirement services. Retail Financial Services (RFS), which offers regional banking, mortgage banking, and auto finance services that include checking and savings accounts, mortgages, home equity and business loans, and investments through bank branches, ATMs, online banking, and telephone banking; and Card Services (CS), which issues credit cards and processes MasterCard and Visa payments.
JPM was founded in 1823 and is headquartered in New York, New York.
|
Share Statistics (15-Oct-09) |
|
2007 |
2008 |
% Chg |
Q3 ’08 |
Q3 ’09 |
% Chg |
|
|
Symbol |
JPM |
Total Net Revenue, $Mn |
– |
– |
– |
14,737 |
26,622 |
80.65% |
|
Current price |
$46.91 |
Net Interest Income, $Mn |
26,406 |
38,779 |
46.86% |
8,994 |
12,737 |
41.62% |
|
52wk Range: |
14.96-47.97 |
Oper. margin |
– |
11.48% |
– |
– |
– |
– |
|
Avg Vol (3m): |
39,801,500 |
Net Profit margin |
– |
8.20% |
– |
– |
– |
– |
|
Market Cap. |
184.48B |
|
|
|
|
|
|
|
|
Dil. Shares Outst. |
3.93B |
EPS, $ |
4.555 |
0.944 |
-79.28% |
-0.058 |
0.822 |
1,517% |
Source: Reuters.com, SEC Filings, Q3 2009 Report, FY ending December
Investment Highlights
Analysts are upbeat on JPM following the Company’s strong earnings report Wednesday. For the third quarter of 2009, the Company reported net income of $3.6 billion, compared with net income of $527 million in the third quarter of 2008. JPM earned $0.82 per share, compared with $0.09 in the prior year. “Our net income of $3.6 billion in the quarter reflected the strong earnings power of the company, with broad-based growth across the Investment Bank, Asset Management, Commercial Banking and Retail Banking,” JPM chairman and CEO Jamie Dimon stated in the press release.
JPM shares were recently upgraded to Outperform by Fox-Pitt, with price target maintained at $55 per share. Meanwhile, Goldman Sachs upped its EPS estimates through 2011, while holding a price target of $54 per share for the stock.
JPM set a new 52-week high during Wednesday’s trading session when it reached 47.47. Over this period, the share price is up 16.08%.
Technical Analysis
Moving Average
JPM is trading above its 13-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.
MACD
The MACD for JPM currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.
Bollinger Bands
JPM’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility. Additionally, JPM is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.
Source: http://www.scottrade.com
Human Genome Sciences (NASDAQ: HGSI)
Human Genome Sciences (HGSI), a commercially focused biopharmaceutical company, engages in the development of innovative drugs to patients with unmet medical needs. Its clinical development pipeline includes novel drugs to treat hepatitis C, lupus, inhalation anthrax and cancer.
HGSI is primarily focused on rapidly progressing the commercialization of its two lead drugs, BENLYSTA™ (belimumab) for lupus and ZALBIN™ (albinterferon alfa-2b, formerly Albuferon®) for hepatitis C. BENLYSTA has successfully met its primary endpoint in the first of two phase III trials in systemic lupus erythematosus, and results of the second BENLYSTA phase III trial are expected in November 2009. ZALBIN has now completed phase 3 development, and the submission of global marketing applications is expected in late fall 2009.
Through a strategic collaboration agreement with GlaxoSmithKline (GSK), HGSI has substantial financial rights to certain products in the GSK clinical pipeline, including darapladib that is in phase III development as a treatment for coronary heart disease; and Syncria (albiglutide), which is in phase III development as a treatment for type 2 diabetes. Additionally, it has a strategic commercial collaboration agreement with Novartis for the co-development and commercialization of Zalbin; and a strategic licensing and collaboration agreement with Aegera Therapeutics Inc. to develop and commercialize HGS1029 and other small-molecule inhibitors of IAP (inhibitor of apoptosis) proteins in oncology.
HGSI was founded in 1992 and is headquartered in Rockville, Maryland.
|
Share Statistics (15-Oct-09) |
|
2007 |
2008 |
% Chg |
Q2 ’08 |
Q2 ’09 |
% Chg |
|
|
Symbol |
HGSI |
Revenue, $Mn |
41.9 |
48.4 |
15.51% |
11.6 |
26.7 |
130.17% |
|
Current price |
$19.75 |
Gross marg. |
– |
– |
– |
– |
51.69% |
– |
|
52wk Range: |
0.45-22.78 |
Oper. Margin |
– |
-14.41% |
– |
-526.94% |
-204.88% |
-73.182 b.p. |
|
Avg Vol (3m): |
12,342,400 |
Net margin |
-626.25% |
-505.99% |
-113,224 b.p. |
-690.52% |
-244.94% |
-93,546 b.p. |
|
Market Cap. |
2.69B |
|
|
|
|
|
|
|
|
Dil. Shares Outst. |
136.06M |
EPS, $ |
-1.981 |
-1.809 |
-8.68% |
-0.592 |
-0.388 |
-34.46% |
Source: Reuters.com, SEC Filings, FY ending December
Investment Highlights
Shares of HGSI were boosted Wednesday as analysts expressed bullish outlook on the stock. Citing its developing lupus drug Benlysta, Citi analyst Dr. Yaron Werber reaffirmed a “Buy” rating and boosted his price target to $30 from $17. In a note to investors, Weber said results from a mid-stage study on the drug candidate, along with management’s outlook, give him confidence that additional studies will also yield positive data.
Also, Goldman Sachs continues its coverage on the stock with a Buy rating and $24 price target. In addition to possible marketing approval of Benlysta, Zalbin and ABthrax, the firm is seeing HGSI as potential takeover target.
The Company is scheduled to discuss BENLYSTA and the phase III BLISS-52 trial results during an Analyst & Investor Meeting, which the Company will host at the 2009 American College of Rheumatology Annual Scientific Meeting. The HGSI Analyst & Investor meeting will begin at approximately 6:30 PM Eastern on Tuesday, October 20, 2009, and will be accessible by Web cast at www.hgsi.com.
Technical Analysis
Moving Average
HGSI has been relatively stable recently. This is evidenced by the width of its Bollinger Bands which are tighter than normal. Additionally, HGSI is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.
MACD
HGSI’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9-day moving average or signal line. This suggests that positive momentum has begun to slow.
Bollinger Bands
HGSI is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.
Source: http://www.scottrade.com
Abbott Laboratories (NYSE: ABT)
Abbott Laboratories (ABT) is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. It operates through four business segments: Pharmaceutical Products, which products include a line of adult and pediatric pharmaceuticals manufactured, marketed and sold worldwide; Nutritional Products, which offers a line of pediatric and adult nutritional products manufactured, marketed and sold worldwide; Diagnostic Products, which offers diagnostic systems and tests manufactured, marketed and sold worldwide to blood banks, hospitals, commercial laboratories; and Vascular Products, which product line includes coronary, endovascular and vessel closure devices manufactured, marketed and sold worldwide.
Founded in 1888, ABT employs 72,000 people and markets its products in more than 130 countries. The Company is based in Abbott Park, Illinois.
|
Share Statistics (15-Oct-09) |
|
2007 |
2008 |
% Chg |
Q3 ’08 |
Q3 ’09 |
% Chg |
|
|
Symbol |
ABT |
Revenue, $Mn |
25,914 |
29,528 |
13.95% |
7,498 |
7,761 |
3.51% |
|
Current price |
$51.68 |
Gross marg. |
55.92% |
57.29% |
137 b.p. |
55.28% |
56.71% |
143 b.p. |
|
52wk Range: |
41.27-58.24 |
Oper. margin |
– |
20.43% |
– |
– |
– |
– |
|
Avg Vol (3m): |
9,167,240 |
Net margin |
13.92% |
16.53% |
261 b.p. |
14.47 |
19.07 |
460 b.p. |
|
Market Cap. |
79.89B |
|
|
|
|
|
|
|
|
Dil. Shares Outst. |
1.55B |
EPS, $ |
2.337 |
3.126 |
33.76% |
0.702 |
0.954 |
35.90% |
Source: Reuters.com, SEC Filings, FY ending December
Investment Highlights
ABT shares were up Wednesday as the Company reported a 16.5% earnings growth in the third quarter ended September 30, 2009. Its earnings of 92 cents per share topped estimates morning by two cents.
“Abbott is performing well, generating higher-than-expected earnings growth in the third quarter,” ABT chairman and CEO Miles D. White stated in the Company’s press release. “During the quarter, we announced several acquisitions that support our long-term growth strategy. These acquisitions add to our diverse mix of global businesses, with new technologies, established products and emerging market infrastructure that will help us deliver sustainable industry-leading growth. In particular, the acquisition of Solvay Pharmaceuticals will further diversify our global pharmaceuticals business.”
For the full year 2009, the Company looks to earn $3.70 to $3.72 per share, up from its previous guidance of $3.65 to $3.70 per share and the current consensus earnings estimate is $3.69 per share.
Technical Analysis
Moving Average
ABT is trading above its 13-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.
MACD
The MACD for ABT currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.
Bollinger Bands
ABT is trading near its upper Bollinger Band. This suggests that the stock price is high relative to its recent price action.
Source: http://www.scottrade.com
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