Q2 STOCKS TO BUY

2 Healthcare Stocks Making Volatile Moves

SFIX is one of the worst stocks on the Nasdaq today

Dec 11, 2018 at 3:15 PM
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After trading higher most of the day, U.S. stocks have turned lower, marking another session of intense volatility. Three names in particular making big moves are online styling platform Stitch Fix Inc (NASDAQ:SFIX), drugmaker Portola Pharmaceuticals Inc (NASDAQ:PTLA), and regenerative tissue specialist PolarityTE Inc (NASDAQ:PTE). Here's what's moving shares of SFIX, PTLA, and PTE.

Client Growth Concerns Send SFIX Spiraling

SFIX stock is selling off today after earnings, last seen trading down 24.4% at $19.62. The company actually topped profit and revenue estimates with its fiscal first-quarter results, but current-quarter user growth -- which Stitch Fix expects to remain flat -- is causing today's selling. The shares earlier traded as low as $18.40, right above their lows from June, and have lost 62.6% since a September peak above $52.

A number of bearish analyst notes have added to the equity's woes, including a downgrade to "market perform" at William Blair and a price-target cut to $25 from $36 at J.P. Morgan Securities. The majority of analysts covering SFIX shares already had "hold" ratings coming into today, though there are still four bullish recommendations, as well.

Ondexxya Delay Has PTLA Flirting With New Low

PTLA is down 9.5% at $18.91, after European regulators extended the review period of the company's bleeding drug, Ondexxya, which was approved by the U.S. in May. With today's slide, the shares are again approaching their nearly two-year low of $18.18 from last month, with the 50-day moving average acting as resistance along the way.

Overall, Portola Pharmaceuticals is down over 60% in 2018. All of this is great news for short sellers, who control more than one-fourth of the total float after a 9.3% increase in the number of shorted shares during the last reporting period. Based on average daily volume, it'd take these bears more than two weeks to buy back their shares.

PTE Stock Jumps After Board Announcement

PTE shares are getting a jolt today after the company announced the addition of former Food and Drug Administration (FDA) official and Johnson & Johnson (JNJ) executive Minnie Baylor-Henry to its board. The stock is up 9.6% at $15.53 at last check, an upside move that was badly needed. More specifically, the shares had been sliding on the charts since jumping up to $41.22 back in June. This would mark PolarityTE's first close above the 50-day moving average since early September. We'll see if today's news attracts more analyst attention, since there's only one covering the security at the moment.

 
 

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