Tuesday was a down day for most of the stock market, with major benchmarks finishing with modest losses of half a percent or less. The NYSE Composite pulled back from the record highs it reached early on Monday, and the rotation between different sectors gave way to broader-based selling across industry lines. Some market participants fear that recent advances in stocks have fully priced in expectations of tax cuts, and that could leave investors vulnerable to downdrafts if something other than the best-case scenario comes about. Yet good news from individual companies helped limit losses, and Snap (SNAP 6.70%), Regal Entertainment Group (NYSE: RGC), and Revance Therapeutics (RVNC 0.80%) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Snap seeks to rebound
Shares of Snap climbed 10% after the Snapchat operator got positive comments from professional analysts. Stock analysts at Barclays raised hope that Snap might finally have hit bottom, raising their rating on the stock from equal weight to overweight and boosting their price target by more than 60% to $18 per share. The analysts said revenue growth, investment interest from a Chinese industry peer, and redesigned app platforms could be catalysts for a rebound. Even if Snap is able to reach the new price target, however, it will still be down from its opening-day price following its initial public offering.
Image source: Snap.
Regal gets an offer it can't refuse
Regal Entertainment Group stock gained over 9% in the wake of the company's announcement that U.K. cinema operator Cineworld Group will acquire its U.S. movie industry peer. According to the terms of the deal, Cineworld will pay Regal shareholders $23 per share in cash, valuing the company at about $5.9 billion including assumed debt. News that Regal and Cineworld were in talks came out about a week ago, which explains why today's gains weren't larger. Regal CEO Amy Miles was happy that the deal should "enhance Regal's ability to deliver a premium movie-going experience for customers," and the two companies hope to close the deal by the first quarter of 2018. With competitive pressures among movie theater companies building, consolidation makes sense in the industry.
Revance gets good trial results
Finally, shares of Revance Therapeutics soared by almost 34%. The biotech specialist announced favorable results from a pair of phase 3 clinical trials evaluating its RT002 treatment for glabellar lines between the eyebrows. Both trials showed that use of RT002 led to statistically significant reduction in severity of the condition compared to the placebo, and the vast majority of patients involved in the trial also said that that they were happy with their experience during the treatment. Investors will have to wait for another trial to establish RT002's safety profile more thoroughly, but the company hopes to seek FDA approval for the drug within the next few years.