Why Inteliquent, Pacific Biosciences of California, and Galectin Therapeutics Are Today's 3 Best Stocks

The S&P 500 advances modestly on strong earnings results as Inteliquent, Pacific Biosciences of California, and Galectin Therapeutics jumped by at least 15%.

Jan 21, 2014 at 5:15PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

With the Martin Luther King Jr. holiday shortening the trading week and a very light amount of economic data on tap, the S&P 500 (SNPINDEX:^GSPC) had a hard time finding traction and deciphering which way it wanted to move today.

Early fourth-quarter earnings results were the primary driver of the S&P 500, and were ultimately responsible for pushing it modestly higher.

On one hand Delta Air Lines delighted shareholders by reporting a 6% jump in revenue that was helped by a 9.4% increase in domestic revenue. The airline's profit increased as fuel costs decreased by $91 million.

Then again, health care conglomerate Johnson & Johnson (NYSE:JNJ) reported market-topping fourth-quarter results that included a 4.5% increase in revenue and a $0.04 EPS beat, but offered a fiscal 2014 earnings-per-share forecast of $5.75 to $5.85, at the low-end of Wall Street's forecast.

By day's end, the S&P had digested these and other earnings stories and moved higher by 5.10 points (0.28%) to close at 1,843.80, ending a two-day losing streak.

Shares of VoIP and Ethernet telecommunications service provider Inteliquent (NASDAQ:IQNT) led the charge, advancing 22.9% after receiving an upgrade to outperform from market perform from research firm Raymond James. This followed the appointment of Kurt Abkemeier as the company's new chief financial officer. While the appointment of a new CFO clears some near-term uncertainties at Inteliquent, the upgrade with a fresh $12 price target appears to be most responsible for today's share price jump. With close to $2 in cash per share and the company valued at just 16 times forward earnings, I would certainly say that Inteliquent could have more left in the tank.

Marching to the beat of its own drum for a second straight session was Pacific Biosciences of California (NASDAQ:PACB) , which rallied 19.5% despite a lack of specific news on the genetic analysis company. The entire genetic analysis sector has been abuzz since the JPMorgan Healthcare Conference last week in which Illumina unveiled a new genome sequencer, the HiSeq X Ten, that is capable of sequencing 18,000 or more human genomes annually at a cost of $1,000 per genome. The opinion from analysts is that as sequencing technologies become more affordable, their use in personalizing cancer treatments is going to explode higher. That would be music to the ears of Pacific Biosciences shareholders who have seen their company improve revenue by low double-digits in recent quarters.

Finally, clinical-stage drug developer Galectin Therapeutics (NASDAQ:GALT) jumped 15% after announcing a preclinical study that supports its investigational new drug application for GR-MD-02 in nonalcoholic steatohepatitis, or NASH. Specifically, hyaluronic acid, a biomarker of liver fibrosis, which is common with NASH, was reduced by 33% in animals treated with GR-MD-02 compared to untreated animals. As we've witnessed with Intercept Pharmaceuticals' recent $200-per-share move following its midstage results on obeticholic acid, there's a huge market for treating advanced NASH cases (approximately 6 million people), so these early results could be encouraging. Keep in mind, though, that how a drug responds in animal testing can be completely different from how it responds in human clinical trials. Don't get too excited just yet.

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The Motley Fool owns shares of, and recommends Johnson & Johnson. It also recommends Illumina and Pacific Biosciences of California. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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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