Buzz Stocks: Teva Pharmaceutical Industries LTD (ADR), Juno Therapeutics Inc, and Valeant Pharmaceuticals Intl Inc

Today's stocks to watch in the news include Teva Pharmaceutical Industries Ltd. (ADR) (NYSE:TEVA), Juno Therapeutics Inc (NASDAQ:JUNO), and Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

by Celeste Taylor

Published on Jul 13, 2016 at 10:18 AM

U.S. stocks are struggling to hold early gains, following a record-setting start to the week. Among equities in focus today are biotech stocks Teva Pharmaceutical Industries Ltd. (ADR) (NYSE:TEVA), Juno Therapeutics Inc (NASDAQ:JUNO), and Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

  • TEVA is up 7.2% at $56.36, after the company optimistically revised its second-quarter outlook, and issued an update on its $40.5 billion agreement to purchase Allergan plc Ordinary Shares' (NYSE:AGN) generic drug portfolio. Specifically, AGN extended the deadline to close the deal, as the pair await antitrust approval. TEVA now sits above its 80-day moving average, which has contained the shares since early February, but the stock is still down 14.4% so far this year. Option players seem to be growing more bullish, with TEVA's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sitting at 4.34, higher than 80% of all other readings from the past 12 months. Analysts also seem optimistic towards the stock, with 14 of 18 rating Teva Pharmaceutical Industries Ltd (ADR) a "buy" or better, and without a single "sell" in sight.
  • JUNO is up 22% at $31.91, after the Food and Drug Administration (FDA) removed a clinical hold on the trial of its cancer drug JCAR015, which was put in place last week after two patient deaths. The stock has pared about 50% of last Friday's 31.2% bear gap, and remains down 22.6% year-to-date. There are likely some option bulls cheering today's momentum, with Juno Therapeutics Inc's 50-day ISE/CBOE/PHLX call/put volume ratio of 5.55 sitting higher than 81% of all other readings in the past year. Analysts are rewarding JUNO today, with Guggenheim and Barclays upping their price targets to $43 and $41, respectively. 
  • VRX is up 5.6% at $24.52, despite what was once one of its largest shareholders, Sequoia Fund, announcing it had pulled out all of its investments in the company by mid-June. "Valeant was our largest position to start the year and its 80 percent decline through June 30 badly penalized our results," stated a letter from the fund's investment committee. In fact, the biotech stock hit a six-year low of $18.55 in late June, and is down more than 75% in 2016. However, VRX has picked up steam in July -- up more than 22% month-to-date -- and call players have been hot on the stock, with Valeant Pharmaceuticals Intl Inc's 50-day ISE/CBOE/PHLX call/put volume ratio of 2.10 sitting in the 98th percentile of its annual range. Short interest, however, is also popular with investors as of late, rising 34.5% over the last two reporting periods, to account for 10.3% of VRX's float.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

3 Million to Lose Jobs – and Not Because of Coronavirus?
A terrifying new trend can make you a millionaire or destroy your financial future.
Wall Street Reclaims Two Key Trendlines This Week
U.S.-China tensions and dire economic data still weigh, though
Dell Stock Jumps on Upbeat First Quarter
DELL announced an upbeat first-quarter report
Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.