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2 Stocks Surging on New Contracts

VISL and MDR are two of the best stocks today, while AMRX shares have tanked

Jul 10, 2019 at 2:10 PM
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The Dow hit record highs today following dovish comments from Fed Chair Jerome Powell. Three names in particular making moves are communications solutions provider Vislink Technologies Inc (NASDAQ:VISL), offshore drilling issue McDermott International (NYSE:MDR), and drugmaker Amneal Pharmaceuticals Inc (NYSE:AMRX). Here's what's moving the shares of VISL, MDR, and AMRX.

VISL Explodes 330%

VISL stock is the biggest winner on the Street today, last seen trading up 330% at $7.11, after the company secured a $2.8 million deal with the U.S. Army. Not surprisingly, this would mark the best day ever for the shares. They were trading at a record low of $1.26 as recently as May 20, but today tapped an annual high of $8.00. We'll see if this can bring in some analyst attention for Vislink Technologies, since right now no analysts are in coverage on the stock.

Saudi Aramco Contract Boosts MDR Shares

MDR shares have jumped 12.9% to $10.52 -- on pace for their highest close since an October bear gap -- after the company landed a $1.5 billion contract from Saudi Aramco. This has the shares set to topple recent resistance from the 200-day moving average, but still leaves them down 44.1% in the past year. More recently, MDR has spent 2019 bouncing between support in the $6 region and resistance around $10.

The move should also be good news for recent McDermott options traders, who've picked up calls at a rapid pace. Specifically, the 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) comes in at 4.97, showing almost five long calls opened for every put in recent weeks.

AMRX Slides to New Low on Forecast Woes

AMRX has lost a third of its value today, last seen trading at $4.51, earlier hitting a record low of $4.36. Sparking the sell-off was the company's lowered full-year forecast due to more uncertainty around supply of epinephrine shots. The company revealed a restructuring plan to help it save costs, as well. Today's pullback brings Amneal Pharmaceuticals' year-to-date loss to close to 67%.

Despite this technical weakness, there is a lot of optimism left among covering analysts. In fact, four firms tracking AMRX still have "strong buy" ratings, and the average 12-month price target is $12.73 -- roughly triple the equity's current price.

 

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