Why Karyopharm Therapeutics, OpenTable, and Express Are Today's 3 Best Stocks

The S&P 500 ends its three-day losing streak as Karyopharm, OpenTable, and Express all explode to the upside

Jun 13, 2014 at 5:15PM

Unlike yesterday, when the S&P 500 (SNPINDEX:^GSPC) witnessed its worst decline in weeks on generally positive economic data, the markets were privy to less-than-impressive economic data today, yet still climbed to the upside.


Specifically, the Producer Price Index for May came in with a decline of 0.2%, which, while nice for businesses in that it demonstrates lower month-over-month pricing, is concerning because it could lead to a deflationary environment, which hurts the ability of businesses to raise prices and grow margins. I wouldn't read too much into this decline just yet, considering the rapid incline the PPI has had during the past couple of months, but it's a situation worth monitoring.

In addition, the Thomson Reuters/University of Michigan preliminary June consumer sentiment figure dipped to a reading of 81.2 from 81.9 in the previous month. A drop here signifies that consumers are less confident about their short- and long-term financial outlooks. The idea likely to spend, which could adversely impact U.S. GDP growth.

Despite these concerns, investors shook off the S&P 500's three-day losing streak, and ended the week on a high note by rising 6.05 points (0.31%), to close at 1,936.16.


Source: MyFuture.com, Flickr.

The real market leader today came from the biotech sector with Karyopharm Therapeutics (NASDAQ:KPTI) surging incessantly throughout the day, and ending higher by 93.5% after announcing phase 1 data of its investigational drug selinexor in combination with low-dose dexamethasone in heavily pretreated multiple myeloma patients. Initial results of its study demonstrated that the overall response rate was 50%, with a clinical benefit rate of 75%. What's incredible about these results is that the average patient had received 5.5 prior lines of therapy. Also, adverse events associated with the combo therapy were generally low-grade in nature, meaning it was well-tolerated.

Simply put, most patients often don't have much of an overall response in the later stages of multiple myeloma, so Karyopharm's impressive response rate is turning some heads. Keep in mind, though, that we're only talking about a handful of patients here, and we may want to reserve judgment until we have a bigger patient pool to study.

Shares of online restaurant reservation company OpenTable (NASDAQ:OPEN) exploded to the upside by 48.4%, or more than $34 per share, after Priceline Group (NASDAQ:PCLN) agreed to purchase the company, which allows restaurants to fill their tables days or weeks in advance in exchange for a fee, for $2.6 billion, or $103 per share in cash. Both boards of directors have approved the transaction, and it's expected to close in the third quarter.

Source: Dru Kelly, Flickr.

I suspect this deal, while taking Wall Street and investors by surprise, will work out well for both companies, with Priceline seeing immediately accretive benefits from its purchase, and further improving consumer convenience. For OpenTable, aside from shareholders receiving a hefty premium to yesterday's closing price, it gives the company a way of expanding overseas via Priceline's network.


Lastly, shares of struggling retailer Express (NYSE:EXPR) rallied 21.4% after confirming yesterday that it had received a letter from private-equity firm Sycamore Partners that it may make a bid for the company. Sycamore currently owns 9.9% of all outstanding shares of Express, so a bid wouldn't come as too much of a shock; however, Express' shareholder rights plan may make acquiring the company difficult if a significant (and likely unwarranted) premium isn't included.

While Brean Capital took the opportunity to push its price target on Express to $20 from $16 today, I'd suggest that investors consider taking this gift and heading for the exits. Following three consecutive earnings misses and an expected revenue decline in fiscal 2015, it's pretty evident that the company has lost touch with its customer base. Until such time as Express can demonstrate robust same-store sales growth, I suggest staying on the sidelines.

These three stocks may have soared, but keeping up with this top stock over the long run may prove impossible! 
Give us five minutes, and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer handpicks one stock with outstanding potential. But it's not just any run-of-the-mill company; it’s a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% during the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool owns shares of, and recommends Priceline Group. It also recommends OpenTable. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers