SolarWinds (SWI) Investigation Alert: Did You Lose Money on Your Investment? Contact Johnson Fistel Regarding Investigation - Yahoo Finance | Canada News Media
An unprecedented pandemic did not stop the US stock market from finishing 2020 on a high note. The S&P 500 ended a highly volatile year at an all time high and overall, was up 16.3%. Meanwhile, several stocks in the healthcare sector fetched attractive returns for investors. However, that list did not include Gilead Sciences and Biogen.Does Wall Street expect these stocks to recover this year? We used TipRanks’ Stock Comparison tool to find out whether analysts see upside potential in Gilead and Biogen and pick the stock offering a better investment opportunity.Gilead Sciences (GILD)Gilead Sciences grabbed headlines last year when its antiviral drug remdesivir (sold under the brand name Veklury) was granted emergency use authorization in May by the US FDA (Food and Drug Administration) for the treatment of COVID-19. In October 2020, remdesivir became the first FDA-approved treatment in the US for COVID-19 patients.The company generated better-than-anticipated results in 3Q mainly due to remdesivir, which generated $873 million in sales and drove a more than 17% rise in overall 3Q revenue to $6.6 billion. Gilead’s 3Q adjusted EPS increased 29% year-over-year to $2.11. (See GILD stock analysis on TipRanks)However, the company trimmed its 2020 revenue forecast to the range of $23 billion-$23.5 billion, from the previous outlook of $23 billion-$25 billion, and cautioned that remdesivir revenue is subject to significant volatility and uncertainty. Also, its hepatitis C virus (HCV) business continues to be under pressure amid the pandemic.Gilead has a strong HIV portfolio, including its lead drug, Biktarvy. Sales from HIV products grew 8% to $4.5 billion in 3Q and accounted for 70% of the company’s overall product sales. That said, there are concerns about sales of HIV drug Truvada due to loss of exclusivity.Meanwhile, the company is strengthening its business through strategic acquisitions in key growth areas like oncology. Last year, Gilead acquired Immunomedics for $21 billion. This acquisition added Trodelvy, an FDA-approved metastatic triple-negative breast cancer treatment, to Gilead’s portfolio. The company also acquired clinical-stage immuno-oncology company Forty Seven for $4.9 billion in 2020. Most recently, Gilead announced an agreement to acquire German biotech MYR GmbH, which is focused on developing therapeutics for the treatment of chronic hepatitis delta virus.Investors were disappointed when Gilead announced in December that it will not pursue the FDA’s approval for filgotinib as a treatment for rheumatoid arthritis in the US, following a meeting with the regulator. The company entered into a new agreement with partner Galapagos, under which, the latter will assume sole responsibility in Europe for filgotinib, where 200 mg and 100 mg doses are approved for the treatment of moderate to severe rheumatoid arthritis, and in all future indications.In reaction to this development, Oppenheimer analyst Hartaj Singh lowered his price target to $100 from $105. However, the analyst reiterated a Buy rating on Gilead as he continues to believe in his thesis of “(1) a dependable remdesivir/other medicines business against SARS-CoV flares, (2) a base business (HIV/oncology/HCV) growing low-single digits over the next couple of years, (3) operating leverage providing greater earnings growth, and (4) a 3-4% dividend yield.”Currently, the rest of the Street is cautiously optimistic, with a Moderate Buy analyst consensus based on 10 Buys, 12 Holds and 1 Sell. The average price target of $74 suggests an upside potential of 27% from current levels. Shares declined 10.4% in 2020.Biogen (BIIB)2020 was a tough year for Biogen, which specializes in treatments for neurological disorders. The company faced a setback in November when the FDA’s Peripheral and Central Nervous System Drugs Advisory Committee voted against the effectiveness of aducanumab, an investigational antibody for the treatment of Alzheimer’s disease.The news led to a major sell-off in Biogen shares as investors saw aducanumab as a potential blockbuster drug for the company. The Advisory Committee’s recommendations are non-binding for consideration by the FDA and the company disclosed that the FDA will continue the review process, with a decision on aducanumab’s approval to be made by March 7, 2021. (See BIIB stock analysis on TipRanks)To add to investors’ worries, Biogen lost a patent dispute with Mylan in June 2020 for its top-selling multiple sclerosis drug, Tecfidera, which exposes it to competition from Mylan’s generic version. Tecfidera’s revenue fell 15% in 3Q to $953 million, reflecting the impact of multiple generic entrants in the US.Moreover, Biogen’s spinal muscular atrophy drug, Spinraza, is feeling the impact from Roche’s Evrysdi, with sales of the drug declining 10% to $495 million in 3Q. Overall, the company’s 3Q revenue fell 6.2% to $3.4 billion and adjusted EPS declined 3.6% to $8.84. Biogen lowered its full-year revenue outlook to $13.2 billion-$13.4 billion from $13.8 billion-$14.2 billion, assuming “significant erosion of TECFIDERA” in 4Q. Biogen has been entering into strategic collaborations to gain access to drugs with promising potential. Recently, it announced a $1.5 billion (plus potential milestone payments) deal with Sage Therapeutics to co-develop and sell zuranolone (SAGE-217) for major depressive disorder (MDD), postpartum depression (PPD) and other psychiatric disorders and SAGE-324 for essential tremor and other neurological disorders.Following the SAGE deal, Oppenheimer analyst Jay Olson reiterated a Buy rating on Biogen with a $300 price target. Olson explained, “Zuranolone is a potential first-in-class oral therapy for the treatment of MDD and PPD currently in multiple Ph3 studies. Given our view that zuranolone is an active drug and the considerable market opportunity in MDD/PPD, we believe the deal provides BIIB some much-needed revenue growth in the mid-term and better positions BIIB regardless of the aducanumab outcome.”Meanwhile, the Street is sidelined on Biogen with a Hold analyst consensus based on 11 Buys, 13 Holds and 5 Sells. The average price target stands at $293.74, implying a possible upside of 20% in the months ahead. Biogen shares fell 17.5% last year.ConclusionAfter a rocky 2020, the Street’s sentiment looks better for Gilead than Biogen, backed by factors like the company’s HIV portfolio and prospects in oncology. Also, unlike Biogen, Gilead pays dividends and has a dividend yield of 4.67%.To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
