Drugs Stocks Lead on Take Out News

John Ransom | February 19, 2014 12:05 PM

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines:

Stock number one: Forest Labs

Forest Labs buyout may boost other drug stocks--USAToday

Shares of Forest Labs, a maker of treatments for conditions including irritable bowel syndrome, are definitely the biggest winners from the news, rocketing $20.88, or 29%, $92.27 in midday trading Tuesday. And in an interesting twist, shares of the buyer, Actavis, is also higher, $13.36, or 6.7, to $205.24%. Typically, shares of the acquiring company initially fall as investors worry that it paid too much for the deal.

Symbol: FRX

Trailing PE -; Forward PE: -

PEG: -

Dividend: -

Estimate Trend: Up

Ransom Note Trendline: Sell Forest Labs

FRX data by YCharts

Stock number two: Blucora, Inc.

Blucora (BCOR) Plunges on High Volume - The Street.com

Blucora (BCOR_) was plummeting 15.54% to $20.02 shortly after noon on Tuesday on higher-than-usual volume.

The stock had a volume of more than 5.3 million, compared to the average of 486,723. The company, which provides metasearch services for consumers, plans to report its fourth-quarter and full-year results for the fiscal year 2013 on Thursday, Feb. 20 after the market closes.

Symbol: BCOR

Shares of Waste Management (WM), which provides collection, transfer, recycling, and waste disposal services, are falling after the company’s fourth quarter results and fiscal 2014 outlook missed consensus estimates. WHAT'S NEW: This morning, Waste Management reported Q4 adjusted earnings per share of 56c and revenue of $3.5B, compared to analysts' consensus forecasts for 61c and $3.58B, respectively.

Symbol: WM

Trailing PE: 21; Forward PE: 17

PEG: 2.85

Dividend: 3.30%

Estimate Trend: Flat

Ransom Note Trendline: Sell Waste Management