Buzz Stocks: EXACT Sciences Corporation, Ariad Pharmaceuticals, Inc., and Urban Outfitters, Inc.

by Kirra Fedyszyn |

Published on Jan 9, 2017 at 9:27 AM
Updated on Jan 9, 2017 at 11:59 AM

Today's stocks to watch in the news include EXACT Sciences Corporation (EXAS), Ariad Pharmaceuticals, Inc. (ARIA), and Urban Outfitters, Inc. (URBN)

Today's stocks to watch in the news include EXACT Sciences Corporation (EXAS), Ariad Pharmaceuticals, Inc. (ARIA), and Urban Outfitters, Inc. (URBN)

Futures on the Dow are pointing to a lower start for the day, with a number of Fed speeches on tap. Among specific equities in the spotlight are molecular diagnostics firm EXACT Sciences Corporation (NASDAQ:EXAS), drugmaker Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), and retail stock Urban Outfitters, Inc. (NASDAQ:URBN). Here's a quick look at what's driving EXAS, ARIA, and URBN.

  • EXAS is up 16.6% in pre-market trading, after the company said it expects fourth-quarter revenue to come in well above estimates and full-year 2016 revenue to rise 150% from the previous year. The news led Canaccord Genuity to reiterate its upbeat "buy" rating and $24 price target -- a 59% premium over Friday's close at $15.10, and well above the stock's Aug. 15 annual high of $22.80. The stock has been slumping in recent months, though, and traders don't appear terribly optimistic. More than 23% of EXACT Sciences Corporation's total float is wrapped up in short interest, accounting for about 12 days' worth of trading, at the equity's typical pace. That's plenty of buying power to add fuel to EXAS' rally, should shorts abandon ship on today's projected price surge.

  • ARIA is set to boom nearly 74% at the open -- after being briefly halted in electronic trading -- on news the company will be bought by Japanese Takeda Pharmaceuticals Co Ltd in a cash-and-debt deal valued at $5.2 billion, or $24 per ARIA share. This purchase price represents levels Ariad Pharmaceuticals, Inc. hasn't seen since December 2012, and represents a roughly 75% premium to Friday's close at $13.74.
  • URBN is just the latest in a string of retailers set to suffer on weak holiday sales. The company said it had to increase promotional activity to offset lower same-store sales over the holiday season, which will likely weigh on gross margins more than previously expected. Against this backdrop, shares of Urban Outfitters, Inc. are on pace to drop 5.5% at the bell, after the breach of a key technical level sent the stock stumbling last week. Still, the shares could be due for some relief before long. At Friday's finish at $27.42, URBN had a 14-day Relative Strength Index (RSI) of 30 -- already right at oversold territory. 

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