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)

by Mark Fightmaster

Published on Oct 13, 2015 at 10:05 AM
Updated on Oct 13, 2015 at 10:18 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).

  1. 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 reportJNJ'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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