Tech Stock Doubles; 2 Big Healthcare Winners

One bull could be betting on even more upside for ZGNX stock

Digital Content Manager
Jun 27, 2019 at 1:54 PM
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The Dow has pared its gains after Larry Kudlow's tariff comments spooked investors. Several individual stock are surging, though, including tech concern Cemtrex Inc (NASDAQ:CETX), as well as pharma stocks Zogenix Inc (NASDAQ:ZGNX) and Novavax Inc. (NASDAQ:NVAX). Here's a look at what's moving the shares of CETX, ZGNX, and NVAX.

CETX Stock Doubles on New Orders Report 

Cemtrex this morning announced that during the past few months it received roughly $6 million worth of new orders, mostly from customers in medical, automotive and automation fields. The stock has more than doubled in response, up 146.4% at $4.51, set for its best day in nine years.

The stock just hit a three-month high and is testing its footing atop the $5 region, set to close atop its 100-day moving average for the first time in over two years. Looking back, CETX has run into some back luck on the charts of late, with noticeable overhead pressure from the 20-day moving average causing the security to hit its lowest level in years at $1.39 in late May. 

The one analyst following the stock expects plenty more upside for on the charts. CETX stock currently holds a price target of $12 dollars which is at a roughly 150% premium to its current levels. 

FDA Buzz Has ZGNX Stock Skyrocketing 

The shares of ZGNX stock are popping after the biotech concern revealed plans to resubmit its application for the seizure drug, Fintepla, to the Food and Drug Administration (FDA). Plus, SBV Leerink lifted its target price to $56 from $48. The stock saw a massive bear gap when the drug was initially rejected in early April, and while it hasn't yet closed that gap, the equity is surging -- up 20.7% at $47.57 -- eyeing its best day in nearly a year. 

Options traders have come out in droves today, with over 4,255 calls and 1,253 puts across the tape, five times what's usually seen at this point. The July 47 call is by far the most popular, and new positions are opening at the October 55 call, as well.

NanoFlu Approval Has NVAX Stock Surging 

The FDA granted accelerated approval pathway for licensure to Novavax's NanoFlu vaccine earlier, causing the security to hit a new one-month high of $7.15 earlier. Plus, the firm said an arm of the drugmaker Catalent Inc (CTCT), called Paragon Gene Therapy, is set to purchase $18 million in manufacturing equipment. The stock has pared some of its earlier gains, now up 8.3% at $6.

While NVAX has taken a recent beating on the charts -- succumbing to pressure from its 20-day moving average and hitting an all-time low earlier this month -- analysts are unusually optimistic on the stock. Four of the seven in coverage call it a "strong buy." Even more eyebrow raising, however, is the astronomical consensus 12-month target price of $20.43 -- an estimate that triples current levels, and hasn't been touched since before the stock's huge bear gap earlier this year. 

 

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