Today's stocks to watch in the news include Valeant Pharmaceuticals Intl Inc (VRX), Biogen Inc (BIIB), and Ralph Lauren Corp (RL)
Stocks are
higher out of the gate, after Fed Chair Janet Yellen failed to provide a specific timeline for interest rates in yesterday's highly watched speech. On the corporate front, biotechs
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and
Biogen Inc (NASDAQ:BIIB), as well as retail stock
Ralph Lauren Corp (NYSE:RL), are all making headlines this morning.
- VRX has dropped 16.5% out of the gate, after the company reported first-quarter earnings well below estimates and slashed its full-year guidance. According to CEO Joseph Papa, these results reflect the "significant disruption" the embattled drugmaker has faced recently. However, he added that Valeant Pharmaceuticals Intl Inc has "made progress toward stabilizing the organization over the past few months." On the charts, today's price move is just more of the same for the stock, which is now down almost 90% year-over-year at $24.09 -- and earlier hit a new five-year low of $22.88. Analysts have been less than enthusiastic toward VRX, too, with 69% of those covering the shares maintaining a "hold" or "strong sell" rating.
- BIIB is down 9.4% at $262.54, following disappointing results for the company's multiple sclerosis drug, opicinumab. Until today, the stock had been bouncing back in recent weeks, after Biogen Inc's spin-off plans sent the shares tumbling in early May. Longer term, though, the stock remains a laggard, shedding 32% of its value over the past 12 months. Options traders, meanwhile, have been quick to initiate long puts over calls in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BIIB's 10-day put/call volume ratio of 1.16 ranks just 4 percentage points from a 52-week peak.
- RL said it will shutter roughly 50 stores and cut its workforce as part of its restructuring efforts, with CEO Stefan Larsson expected to provide more details at today's annual investor day. Additionally, Ralph Lauren Corp forecast full-year revenue to drop in the low-double digit percentile. Against this backdrop, the shares are down roughly 8% at $88.50, and off 35% year-over-year. Analysts haven't been that encouraged by the stock, either, with 10 out of 13 maintaining a "hold" or worse rating. Elsewhere, short interest jumped 17% in the two most recent reporting periods, and now accounts for a healthy 8.7% of RL's available float.
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