Buzz Stocks: Johnson & Johnson, Wausau Paper Corp., and FMC Corp

Today's stocks to watch include Johnson & Johnson (JNJ), Wausau Paper Corp. (WPP), and FMC Corp (FMC)

Oct 13, 2015 at 10:05 AM

U.S. benchmarks are slightly lower this morning, as worries over Chinese trade data are putting the Dow's win streak in peril. Today's equities in focus are Dow component Johnson & Johnson (NYSE:JNJ), towel and tissue manufacturer Wausau Paper Corp. (NYSE:WPP), and chemical company FMC Corp (NYSE:FMC).

Healthcare concern JNJ is 1.2% lower at $94.89, after the company announced that a stronger U.S. dollar took a bite out of quarterly revenue (subscription required). Still, Johnson & Johnson managed to top per-share expectations and lifted its full-year earnings expectations, and announced plans for a $10 billion stock buyback. The stock has shed 13% since hitting an all-time high of $109.49 in November, yet optimism in the option pits was growing ahead of the report. JNJ's 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at 1.38, in the 64th percentile of its annual range.

Tissue maker WPP is 38% higher at $10.07, after Swedish paper products maker SCA announced it will purchase WPP for $513 million in cash ($10.25 per share). Wasau Paper Corp. stated that it will recommend that its shareholders vote in favor of the acquisition. The $10.25 per-share acquisition price represents a 41% premium over WPP's Monday closing price of $7.29.

FMC is 5.7% lower at $35.38, after the company lowered its full-year adjusted forecast. This is the second time that FMC Corp has lowered guidance, citing a weaker Brazilian currency. FMC added that it is going to cut 800 to 850 jobs. The stock has shed more than 37% in 2015, under substantial pressure from its 10-week moving average. Despite this drop, half of the 12 analysts tracking the chemical company rate it a "buy" or better -- leaving plenty of room for downgrades. In fact, this morning, Nomura cut its price target on FMC to $36 from $50, while Jefferies trimmed its target to $46 from $47.

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