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Speculating on companies that have recently changed their ratings can be a good short-term strategy. Normally, companies will see increases in their prices after these changes.

I assessed companies which were upgraded on September 10 and I chose the top three companies with a significant change on ratings. Here is a look at the three stocks:

1. Amgen Inc (NASDAQ:AMGN) is a biotechnology medicines company that discovers, develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. The company markets its products to healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies; consumers; and wholesale distributors of pharmaceutical products, as well as through the Internet. Amgen was founded in 1980 and is headquartered in Thousand Oaks, California.

(click to enlarge)

- The MACD marks a downward trend. RSI is in a good position. The stock is in a bullish channel.

New Rating

UBS upgraded Amgen from Neutral to Buy. PT raised from $80 to $96.

Matthew Roden, analyst at UBS, said:

Our previous Neutral rating on the industry bellwether had been predicated on an anemic topline growth profile, and a lack of visibility into clear revenue growth drivers in the pipeline. We now take a more constructive outlook ahead of phase 2 data for AMG 145 (lipid-lowering) and AMG 785 (bone health).

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on August 7 with the following highlights:

Revenue$4.47 Billion
Net Income$1.26 Billion
Cash$5.84 Billion

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/15/201211,853,7653,750,4723.160606
7/31/201212,586,6345,670,7892.219556
7/13/201212,104,2014,386,8672.759190

My Analysis

The stock has seen steady insider selling this year. The stock is trading at a forward P/E of 18.00. The short interest shows no significant changes. The stock is just $1.22 shy of the $85.27 52 week high. The MACD marks a downward trend, and for this reason I would wait to purchase shares until they are at $80.45 (MA 50).

2. NextEra Energy, Inc. (NYSE:NEE), through its subsidiaries, engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. The company is involved in the generation of renewable energy from wind and solar projects. It also generates electricity through natural gas, nuclear, oil and coal, and hydro power plants. The company serves approximately 8.9 million people through approximately 4.6 million customer accounts in the east and lower west coasts of Florida. In addition, it leases wholesale fiber-optic network capacity and dark fiber to telephone, wireless, Internet, and other telecommunications companies.

(click to enlarge)

- The MACD marks a change of upward trend. The stock is in a bullish channel. RSI is in a good position.

New Rating

Wells Fargo upgraded NextEra Energy from Market Perform to Outperform, with a price target range $75-$76 (from $72-$73).

Neil Kalton, Analyst at Wells Fargo, said:

Our rating change is prompted by the recent weakness in NEE's share price and reflects our increasing confidence in the company's EPS outlook along with an attractive relative valuation. Our 2012-15E EPS remain $4.55, $4.90, $5.20 and $5.50.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on July 26 with the following highlights:

Revenue$3.66 Billion
Net Income$607 Million
Cash$1.06 Billion

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/15/20127,883,7861,303,0146.050423
7/31/20128,496,2051,549,1505.484430
7/13/20128,513,1271,273,6766.683903

My analysis

The stock has a $73 price target from the Point and Figure chart. NextEra Energy Inc has seen little insider selling this year. The stock is trading at a forward P/E of 13.24. I would buy a small position because the stock is bullish and the recent "upgrade" recommendation will help overcome the $73 target price.

3. Sanofi-Aventis (NYSE:SNY) is a pharmaceutical company, which together with its subsidiaries, researches, develops, manufactures, and markets healthcare products worldwide. Its principle pharmaceutical products include Lantus and Apidra analogs of human insulin; Insuman range of human insulin solutions and suspensions; Amaryl, an oral once-daily sulfonylurea; BGStar and iBGStar blood glucose meters; enzyme replacement therapies, such as Cerezyme to treat Gaucher disease, Fabrazyme to treat Fabry disease and Myozyme/Lumizyme to treat Pompe disease.

(click to enlarge)

- The MACD marks a change of upward trend. The stock is in a bullish channel. RSI is in good position.

New Rating

BofA/Merrill Lynch upgraded Sanofi-Aventis from Neutral to Buy.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on July 26 with the following highlights:

Revenue€8.87 Billion
Net Income€1.22 Billion
Cash€3.93 Billion

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/15/20122,756,2241,996,7871.380329
7/31/20123,873,2793,546,6581.092093
7/13/20122,302,2782,872,479

1.000000

My analysis

The stock has a $45 price target from the Point and Figure chart. Short interest has decreased significantly in a month. I recommend buying shares with a price target of $45 for sale in the medium term because the MACD marks a change of upward trend.

*Chart data sourced from stockcharts, all other data sourced from Nasdaq.com as well as the web of the previously mentioned company.

Source: Top 3 Stock Upgrades On September 10

Additional disclosure: Investors buy and/or sell at their own risk. I declare that I may day-trade any stock at any time mentioned in this article. For me "long" is until I sell and few tell you that. I do not "short" stocks and few tell you that too. I also get paid one penny per view from SA and other than being published by SA and my own private stock account, I have zero connection to Wall Street and few tell you that too.