The Stocks Wall Street Loves
Despite all of Wall Street's conflict and contention, a fortunate few companies enjoy unanimous support among professional analysts. If the market's movers and shakers all believe these companies will beat the long-term averages, well, surely they will -- right?
Not so fast! With help from the 180,000 members of Motley Fool CAPS, we'll see whether these highflying favorites deserve analysts' unwavering support.
CAPS Rating(out of 5)
CAPS Bullish Sentiment
No. Wall Street Analysts
52-Week Price Change
|Amarin (NAS: AMRN)|
|Celldex Therapeutics (NAS: CLDX)|
|First Majestic Silver (NYS: AG)|
Source: Motley Fool CAPS.
Sometime this month, Amarin should file its application with the FDA for approval of its fish oil therapy AMR-101. When it comes to the FDA, nothing should be taken for granted, but the drugmaker's publication of results in a peer-reviewed journal is just another indication of what the outcome of the filing should be.
The American Journal of Cardiology published Amarin's phase 3 MARINE clinical data results showing a statistically significant reduction in triglyceride levels without a corresponding rise in LDL-cholesterol. That's why many expect the drug to do better than GlaxoSmithKline's (NYS: GSK) Lovaza.
Amarin previously presented this data at a European cardiology conference, so even though there's nothing new here, per se, a peer-reviewed article at least has other scientists looking over its shoulder.
Shares of the drugmaker have drifted lower from the highs it hit back in May after management said it didn't want a buyout, but submission of AMR-101 and its ultimate approval will drive Amarin's stock higher again. CAPS member headyinvestor can't believe the price, either: "Really surprised the stock is trading this low following the positive results from ANCHOR. Will end up being gobbled up next time they need cash."
Let us know in the comments section below or on the Amarin CAPS page whether you agree that this stock can make a whale of a tale.
Biotech Celldex Therapeutics is another one counting on positive outcomes to generate future gains. It applies its Precision Targeted Immunotherapy platform to create a pipeline of candidates to treat cancer and other difficult-to-treat diseases, but the loss of Pfizer (NYS: PFE) last year as a partner has affected revenues. Product sales, which arose out of the agreement with the pharmaceutical, are virtually eliminated. General and administrative expenses now far exceed its revenues, making for a pretty dicey outlook.
While the stock plummeted after it released its second-quarter report, it has been struggling to regain the lost momentum. It was at least able to report some positive data for CDX-1135, a treatment for pediatric kidney disease. All-Star CAPS members might not be as bullish as the broader community, but 89% still see it beating the Street.
Add Celldex to your watchlist to keep tabs on whether it will get the results it needs to seek out revenues, let alone profits.
Hold off on the champagne
With total cash costs of just $8.32 per ounce, having silver trade at $50 an ounce -- or even $30 -- makes for a pretty profitable picture for First Majestic Silver. Today gold's cousin trades north of $40 an ounce, and though the miner said investors should expect its cash costs to rise this year as it faces higher input costs and a weaker dollar, if its prediction of silver at $100 an ounce comes anywhere close, I don't think that will be much of an issue.
As it is, First Majestic saw a tripling of its cash flows in the quarter, despite the pounding silver's price took. That's not equal to the 553% windfallEndeavor Silver (NYS: EXK) enjoyed in operating cash flows, but it's a significant improvement nonetheless.
Highly rated CAPS All-Star TMF1000 thinks having exposure to silver is something every investor needs and finds Majestic's quarterly report a good starting point for an investment.
I think it is important to have a silver stock. I have resisted the temptation, but I have decided it is a good defensive move for now. Their last earnings report was excellent. I don't see silver going down anytime soon.
Mine the First Majestic Silver CAPS page for more opinions, and add its stock to the Fool's free portfolio tracker for complete coverage of its developments.
Agree to disagree
It pays to start your own research on these stocks on Motley Fool CAPS. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made, all from a stock's CAPS page.
Sign up today for the completely free service, and tell us whether these stocks deserve to have Wall Street marching lockstep.
At the time this article was published Fool contributor Rich Duprey holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of GlaxoSmithKline. Motley Fool newsletter services have recommended buying shares of Pfizer and GlaxoSmithKline. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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