Stocks quoted in this article:
After six down days in a row, the major market indexes have shot higher today, as China's well-received GDP report has sparked a welcome rally on Wall Street. As the bullish momentum continues, both the Dow and S&P 500 Index (SPX) are looking to climb atop breakeven for the week. So far today, the number of stocks at new annual highs easily outweighs the number of stocks at new lows. The NYSE has seen 172 securities at 52-week peaks, while the Nasdaq tallies 83 annual highs. Among the equities tagging new peaks are D.R. Horton, Inc. (NYSE:DHI - 18.94), Johnson & Johnson (NYSE:JNJ - 68.64), and Orexigen Therapeutics, Inc. (NASDAQ:OREX - 7.15).
- DHI enjoyed an analyst-induced bounce today, reaching a more than five-year best of $19.33. Specifically, Credit Suisse lifted its price target to $21 from $19.50, while MKM Partners upgraded the stock to "buy" from "neutral." DHI has performed quite well on the charts, tacking on more than 63% during the past year, and outpacing the broader SPX by 28 percentage points over the past three months. But the brokerage bunch appears to be aloof to this impressive price action, as eight out of 13 analysts consider the stock a "hold" or worse. Plus, the average 12-month price target sits at $17.80, which is a discount to today's new high.
- While Goldman Sachs upped its price-target for JNJ yesterday, Jefferies followed suit this morning, raising its price target on the pharmaceutical giant to $75 from $72. These bullish notes launched the stock to the $68.70 level -- its loftiest perch since October 2008. Despite this feat, the shares are only up 4.6% year-to-date, and are hovering just above breakeven for the year. There seems to be plenty of negativity already priced into JNJ. Short interest on soared 385% during the past month, and now accounts for 8.4% of the security's available float. At JNJ's average pace of trading, it would take more than 12 sessions for all of these shorted shares to unwind, which could translate into a contrarian boon for the blue chip.
- Still climbing from upbeat news earlier this week about its weight-loss treatment Contrave, OREX is in impeccable shape, technically speaking. In fact, the shares surged to the $7.36 mark -- its highest price since in 17 months. OREX is up an outstanding 323% year-over-year, and has outperformed the broader SPX by roughly 77 percentage points during the past 60 sessions. The biotech issue could get some help from the analyst group, in light of its overall uptrend. Of the five analysts covering the stock, two have doled out "strong buys," while the remaining three are middling "holds."
Click here to read the new lows list, including Lexmark International, Inc.'s (NYSE:LXK) tumble on weak second-quarter guidance.