Welcome to John Ransom's Stocks In The News, where the headline meets the trendline.
Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.
Stock number one is:
Gilead Sciences,Inc. (SYMBOL: GILD) and the headline says:
S&P MAINTAINS STRONG BUY OPINION ON SHARES OF GILEAD SCIENCES-- Standard & Poor's Research
The FDA has granted Priority Review to Gilead Science's new drug application for sofosbuvir, which represents a major advance in the treatment of hepatitis C. Sofosbuvir could come to market in early 2014.
Earnings are projected to grow 1%, 48%, and 51% over the next three years. The 2013 PE is 27 and the 2014 PE is 18.
On April 29, we advised holding the stock and waiting due to a big price run-up. The stock finally had a pullback, and appears to be doing a double-bounce at $49. Investors probably have through tomorrow to buy the stock below $52 as the price recovers toward a $52-$56 trading range.
Our Ransom Note trendline says: BUY GILEAD SCIENCES TODAY.
Stock number two is:
Thermo Fisher Scientific Inc., (SYMBOL: TMO) and the headline says:
TMO Delivers – Morgan Stanley
Morgan Stanley reported today that Thermo Fisher Scientific has “the most significant (and impressive) new product introductions” at this week’s global conference of the American Society for Mass Spectrometry. TMO designs scientific technology, instruments and laboratory equipment.
Earnings growth is expected at 7-9% per year for the next three years, down from projections of 10-11% per year when we reported on TMO in April.
We cautioned investors not to buy in April, due to a big run-up in share price, and our caution is now compounded by slower earnings growth.
Our Ransom Note trendline says..... STAY ON THE SIDELINES.
Stock number three is:
Comcast Corp., (SYMBOL: CMCSA) and the headline says:
Comcast Unveils Plans for Millions of Xfinity WiFi Hotspots Through Its Home-Based 'Neighborhood Hotspot' Initiative -- BusinessWire
“Comcast announced plans today to create millions of WiFi access points for its customers through a neighborhood hotspot initiative,” reports BusinessWire. Comcast will give residential customers a free, additional xfinitywifi signal so that other customers visiting homes with xfinitywifi can easily gain internet access.
Wall Street expects Comcast’s earnings to grow 25, 15, and 18% over the next three years. The PE is 17.1 and the dividend yield is 1.9%.
Comcast shares reached new highs this year, then experienced a pullback. The stock seems to be completing a bullish double bottom chart pattern today, and will likely climb immediately from here.
Our Ransom Note trendline says.... BUY COMCAST TODAY.