2 Stocks Gaining on Solid Sales; Plus, Why MRK Is Moving Lower

Costco's same-store sales impress, while Mazor Robotics rallies on an upbeat revenue outlook

Managing Editor
Jul 6, 2017 at 10:27 AM
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U.S. stocks are slightly lower this morning, as investors brace for a busy day of economic news. Among specific stocks on the move today are retail name Costco Wholesale Corporation (NASDAQ:COST), Dow pharmaceutical stock Merck & Co., Inc. (NYSE:MRK), and surgical robot maker Mazor Robotics Ltd (NASDAQ:MZOR). Here's a quick look at what's moving shares of COST, MRK, and MZOR.

Costco Stock Inches Higher After Solid Sales Numbers

Costco stock is up 1.4% to trade at $160.23, after reporting June same-store sales numbers that beat analyst estimates. COST shares have fallen considerably since hitting a new all-time high of $182.72 on June 6, due in large part to last month's Amazon-related bear gap. COST has been putting potential support at its 200-day moving average to the test, though the shares closed below this trendline as recently as yesterday.

Despite the recent turmoil on the charts, analysts still seem confident in COST stock. Of the 18 brokerages covering COST, 13 rate it a "buy," with 11 of those being "strong buys." 

FDA Setback Sinks Merck

Merck stock is down 1.1% to trade at $63.47, after patient deaths prompted the Food and Drug Administration (FDA) to put a clinical hold on three studies examining the company's Keytruda drug as a treatment for multiple myeloma. Today's drop continues the choppy price action in MRK this year, as the shares have ricocheted between the $62 and $67 levels since early March.

However, analysts maintain high hopes for MRK. The average 12-month price target stands at $69.40 -- in territory the stock hasn't touched for 16 years.

Record Quarter Revenue Has Mazor Stock Rolling

Mazor Robotics stock is up 6% to trade at $38.10, after the Israeli robotics company projected record-setting second-quarter revenue of $15.4 million. MZOR stock is up 73% year-to-date, with support at the stock's 80-day moving average helping to cushion the blow of an early June bear gap. Thanks to today's bull gap, MZOR is now trading above its 50-day trendline for the first time in about a month.

Analysts remain somewhat skeptical of MZOR, which means the stock could earn some upgrades if the bullish price action and upbeat revenue forecast impress some of the holdouts. Of the six brokerages covering Mazor stock, no fewer than five rate it a "hold."  

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