Why Exact Sciences, Builders FirstSource, and Clayton Williams Energy Jumped Today

The stock market posted strong gains Monday, defying calls that the stock market is rigged. Find out more about what made these three stocks soar.

Mar 31, 2014 at 8:00PM

Over the weekend, investors who tuned into 60 Minutes got a look at the new Michael Lewis book on high-frequency trading, with dire conclusions about how traders take advantage of both institutional and individual investors. Yet even with that backdrop, stocks gained ground Monday, as bullish comments from Fed Chair Janet Yellen were enough to lift investors' spirits. With the broader market up 1%, gains in Exact Sciences (NASDAQ:EXAS), Builders FirstSource (NASDAQ:BLDR), and Clayton Williams Energy (NYSE:CWEI) looked especially strong today.

Exact Sciences climbed 10% after a positive story in Barron's highlighted the company's colon-cancer screening test, Cologuard. With Cologuard having gotten a unanimous recommendation from an FDA advisory committee last week, investors are increasingly hopeful that FDA approval won't be too far behind. The advantage of the Exact Sciences test is that it's far less invasive than a full colonoscopy, yet the ability for safe and effective detection of a major type of cancer appears to be extremely strong. With a great deal of demand for innovative solutions for detecting diseases, Exact Sciences has further room to climb if its test earned the FDA's positive nod.


Image credit Flickr/Lindsey G.

Builders FirstSource gained 13% after analysts at Deutsche Bank upgraded the maker of structural building products to builders of new homes. Although homebuilder stocks have struggled lately under fears that higher interest rates would eventually slow the rise in home-buying activity, many believe that they've declined to the point at which the stocks look favorable from a long-term perspective. Given the long-run need for more housing, both in the single-family and multi-family arenas, Builders FirstSource is a good second-derivative play on the homebuilders. If the builders thrive, then Builders FirstSource should see its business improve as well, and that could spell bigger gains for shareholders in the future.

Clayton Williams Energy rose 15% after analysts at SunTrust boosted their price target on the independent oil and gas company by $25 per share to $170. Clayton Williams operates primarily in Texas, Louisiana, and New Mexico, with exposure to promising areas that include the Permian Basin. With other companies in the area having had success with their operations, investors are growing more optimistic that Clayton Williams could follow suit and deliver stronger growth in the near future.

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Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. 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.

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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