Stocks Breaking Out in the News

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 |  Includes: AZO, PRGO
by: Ockham Research

At Ockham, we are always interested in the interplay between stocks and the financial media. That is why from time to time we like to check in on what Jim Cramer and the other talking heads are talking about. Whether you like it or not, these pundits have the ability to move stocks.

So today, we used our screening tool to look for the stocks that have been the most talked about in the financial media of the past 24 hours according to RazorWire. For those unfamiliar with RazorWire, it is a proprietary technology that captures each time a stock is mentioned on either business television or impactful financial blogs. As you will notice from the list of the most buzz-worthy stocks, many of these stocks are not surprising. However, among the giants two mid cap stocks have snuck into the top ten.

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Top 10 Stocks in the News

  1. BP Plc (NYSE:BP)
  2. Citigroup (NYSE:C)
  3. Apple (NASDAQ:AAPL)
  4. Goldman Sachs (NYSE:GS)
  5. JP Morgan (NYSE:JPM)
  6. Microsoft (NASDAQ:MSFT)
  7. AutoZone (NYSE:AZO)
  8. Perrigo Co. (NYSE:PRGO)
  9. Morgan Stanley (NYSE:MS)
  10. Wells Fargo Co. (NYSE:WFC)

The obvious stocks that sick out among the rest are AutoZone and Perrigo. It is no surprise that AutoZone was active in the news as they reported a better than expected third quarter profits and the stock rose by nearly 6% on an otherwise fairly ugly trading day. AutoZone traded about 5x its normally daily volume of trades on the earnings momentum, and we rate the stock as Fairly Valued.

In addition, Perrigo is generating buzz because one of its strongest competitors Johnson & Johnson (NYSE:JNJ) has been forced off the shelves allowing a perfect opportunity for PRGO to gain stare. Monday, a bacterial contamination forced JNJ to recall over 40 liquid kids medicines. Mad Money’s Jim Cramer and others were quick to assess this as a victory for Perrigo, a smaller stock than JNJ who could see disproportionate upside from the sales gains. Not so fast, Tuesday Bloomberg released a story stating that US regulators have warned Perrigo’s for ibuprofen tablets found to be contaminated with metal shavings. Clearly, there is a lot of news surrounding the world’s largest maker of non-prescription, store brand drugs. We currently have a Fairly Valued or neutral stance on PRGO.

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