2 Stocks Tanking After Earnings

ABMD lowered its 2020 revenue forecast, and WLL recorded a surprise quarterly loss

Digital Content Manager
Aug 1, 2019 at 3:06 PM
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After surging higher earlier on renewed hopes for another Fed rate cut, the major stock market indexes are sinking on a round of new tariffs on Chinese goods. Three names to watch in the meantime are healthcare stocks Myriad Genetics, Inc. (NASDAQ:MYGN) and Abiomed, Inc. (NASDAQ:ABMD), as well as oil issue Whiting Petroleum Corp (NYSE:WLL). Let's take a closer look at what's moving the shares of MYGN, ABMD, and WLL. 

MYGN Stock Scales Nasdaq on UNH Coverage

MYGN is at the top of the Nasdaq today, after UnitedHealth Group (UNH) decided to cover pharmacogenetic testing via the firm's GeneSight Psychotropic treatment in patients with major depressive disorder and anxiety. The UNH nod had the equity clocking a nine-month high of $46.15 earlier, now up 51% to trade at $44. 

While short interest is already diminishing, down 8.3% during the last two reporting periods, there's still plenty of space for a "short squeeze" situation to shoot the shares even higher, should even more of these bears begin to hit the exits. Right now, the 13.9 million shares sold short represent a solid 19.1% of the stock's available float. Plus, at MYGN's average pace of trading, it would take 13 days to cover all these pessimistic positions. 

Abiomed Stock Spirals on Guidance Drop

On the other end of the Nasdaq, Abiomed stock is spiraling, down 27.8% at $201.01, after the company reported second-quarter revenue that fell below analysts' estimates, and lowered its 2020 revenue forecast. The firm said it is making changes to distribution and implementing external initiatives in order to generate future growth. The plummet also prompted BTIG to downgrade the stock to "neutral" from "buy." 

ABMD is eyeing the worst day its seen since 2015, as a result, bottoming out at a new annual low of $198.24 earlier.  Looking back, the security has been on the decline since peaking at $459.75 back in October, amid pressure from its 160- and 120-day moving averages. 

WLL Stock Hits Record Low After Earnings Surprise 

Oil name Whiting Petroleum is crumbling after announcing a surprise second-quarter loss, as well as a 33% cut in jobs and asset sales, fueled by the firm's failure to keep up with increasing oil output in the U.S. through new pipeline construction. The stock is the worst on the New York Stock Exchange today, and touched an all-time low of $10.66 earlier. WLL is now trading down 36.9% at $11.15. 

This earnings shock has already started attracting negative attention from analysts, with KeyBanc downgrading the security to "sector weight" from "overweight." The stock is ripe for more downgrades too. WLL has 13 "strong buy" ratings on the board, compared to just nine tepid "holds," and not a single "sell." Plus, its consensus 12-month target price of $28.17 is more than double current levels, which might lead to some price-target cuts down the line. 


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