MMR

Buzz Stocks: Best Buy, bluebird bio, and Omnicare

Today's stocks to watch include Best Buy Co Inc (NYSE:BBY), bluebird bio Inc (NASDAQ:BLUE), and Omnicare, Inc. (NYSE:OCR)

May 21, 2015 at 9:30 AM
facebook X logo linkedin


Heading into a jam-packed session on the economic front, U.S. stocks are pointed lower. Among the equities in focus are electronics retailer Best Buy Co Inc (NYSE:BBY), biotech concern bluebird bio Inc (NASDAQ:BLUE)​, and healthcare services provider Omnicare, Inc. (NYSE:OCR).

  • BBY is getting a lift this morning from impressive first-quarter numbers. Shares of the retailer are 8% higher in pre-market trading after closing yesterday at $33.78. While 2015 has been tough on Best Buy Co Inc, the stock is a longer-term success story, adding over 33% in the past 12 months. In recent months, though, options traders have grown pessimistic. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.12 is only 8 percentage points from an annual bearish peak.

  • BLUE is set to do even better out of the gate, as the stock is up 11.6% ahead of the open -- and on pace for a record high -- after the company announced a patient with sickle cell disease was treated successfully using its gene therapy. It's not like bluebird bio Inc needed to boost shareholder morale. The equity closed yesterday at $165.71, compared to a closing price of just $23.30 this time last year. This dominant technical performance is likely part of the reason all nine brokerage firms tracking BLUE say it's a "strong buy." Also, its consensus 12-month price target is $201.13 -- a 21.4% premium to current levels, and territory never before seen.

  • OCR is sporting a 1.3% lead in electronic trading, due to news the company will be purchased by CVS Health Corp (NYSE:CVS) for nearly $13 billion. Omnicare, Inc. has been strong on the charts, outdoing the S&P 500 Index (SPX) by almost 20 percentage points over the past three months. In fact, the security touched an all-time high of $95.09 yesterday, before settling at $94.63. Put buying has been more popular than normal, nonetheless. OCR's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.17 is higher than 82% of readings from the past year.
 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
 (ad)