Today's stocks to watch in the news include Horizon Pharma PLC (HZNP), Prima Biomed Ltd. (PBMD), and Advance Auto Parts, Inc. (AAP)
U.S. stocks are poised to pop, despite ongoing uncertainty surrounding Greece's future. In company news, today's stocks to watch include drugmakers Horizon Pharma PLC (NASDAQ:HZNP) and Prima Biomed Ltd. (NASDAQ:PBMD), as well as automotive retailer Advance Auto Parts, Inc. (NYSE:AAP).
- HZNP has placed a hostile bid to buy Depomed Inc (NASDAQ:DEPO) for roughly $3 billion, or $29.25 per share. In May, DEPO rejected its rival's initial proposal, which had the same valuation. This M&A buzz has shares of Horizon Pharma PLC 2.4% lower ahead of the bell, which bucks the recent trend -- as they're up 168% year-to-date at $34.54, and hit a record high of $35.70 last week. The brokerage bunch is fully behind HZNP, with 100% of covering analysts rating the stock a "buy" or better. Plus, the equity's consensus 12-month price target of $38 stands in all-time-high territory.
- PBMD is the recipient of a positive "scientific advice" nod from the European Medicines Agency, regarding the biotech's breast cancer treatment, IMP321. The news has the stock poised to surge more than 42% at the open, potentially adding to its 77.6% year-to-date lead, at $1.19. As recently as late May, Prima Biomed Ltd. was flirting with multi-year highs around the $6.50 level, but has since stair-stepped lower as shorts took profits. During the most recent reporting period, short interest on PBMD fell roughly 90%, and now represents less than 1% of the security's total float.
- Finally, AAP will join the S&P 500 Index (SPX) tomorrow night, replacing Family Dollar Stores, Inc. (NYSE:FDO), which is being acquired by Dollar Tree, Inc. (NASDAQ:DLTR). Technically speaking, Advance Auto Parts, Inc. has had a nice run since consolidating atop the $142 level in late April and early May, closing at $163.42 yesterday. In fact, the stock struck a record peak of $165.16 in late June, and looks poised to take out all-time highs at the open. Traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) are counting on a pullback. AAP's 10-day put/call volume ratio across those exchanges is 3.97, outranking 88% of comparable readings from the past year. A capitulation among these skeptics could result in tailwinds.
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