Monday was a solid day for the major benchmarks. Investors liked what they saw coming out of China, as well as on the mergers and acquisitions front. As the key holiday shopping season approaches, market participants hope that the U.S. consumer will continue to support economic growth into 2020. Some companies also had good news that moved their individual stocks sharply. Lyft (LYFT 3.77%), Arrowhead Pharmaceuticals (ARWR 0.76%), and Ferro (FOE) were among the top performers. Here's why they did so well.
A lift for Lyft
Shares of Lyft rose 5% after the ride-hailing specialist got positive comments from analysts. Loop Capital Markets upgraded Lyft stock from hold to buy, arguing that the company has done a good job of fighting back against competition and has worked hard to pursue its strategic vision more successfully. Moreover, some troubles at archrival Uber could help Lyft as well, including the recent decision that pulled Uber's license to operate in London. Lyft isn't yet operating in London, but shareholders seem excited that the company might be able to take advantage of Uber's challenges both there and in other markets.
Could Arrowhead be next to get bought out?
Arrowhead Pharmaceuticals saw its stock jump 16% on speculation that the drug company might become a takeover target. Over the weekend, Novartis announced that it would purchase The Medicines Company for $9.7 billion, in the hopes of turning Medicines' cholesterol-fighting inclisiran into a blockbuster drug in the battle against heart disease. Arrowhead's research has focused on some of the same small interfering RNA therapies as inclisiran, and investors hope that another pharma giant might look at Arrowhead as an answer to Novartis' pickup of Medicines. Today's move just added to the immense stock gains that Arrowhead has enjoyed, but that isn't making shareholders any less optimistic.
Ferro gets a second look
Finally, shares of Ferro climbed 13%. The supplier of technology-based coatings and color solutions is reportedly looking at strategic options to enhance shareholder value, including moves that could result in a sale of the company. Before today's jump, Ferro's stock had lost about half its value in the past two years as cyclical weakness in the global economy and some company-specific challenges combined to hold the share price down. Tough industry conditions are often great times for consolidation, though. Investors have to hope that Ferro will get good advice and come up with some strategic combination that can get its share price moving in the right direction.