J.M. Smucker (SJM), Norfolk Southern (NSC), and Mallinckrodt (MNK) were at the top of the SPDR S&P 500 ETF (SPY) on November 19. They gained 7.0%, 4.7%, and 4.3%, respectively, on the day. J.M. Smucker (SJM) posted EPS (earnings per share) of $1.62, beating the consensus estimate of $1.52. It also reported net sales of around $2.1 billion, in line with the market expectation. Norfolk Southern (NSC) maintained its position in the top three as is it evaluated the takeover offer from Canadian Pacific Railway (CP). Also, Mallinckrodt (MNK) rose on the day as its revealed plans to buy back shares and reduce outstanding debt. The company had authorized $500 million for share repurchase.
The graph above compares the stock price performances of the THC and UNH since October 2015.
Stocks at the bottom of the SPY on November 19 were Chesapeake Energy (CHK), Tenet Healthcare (THC), and Nabors Industries (NBR). These stocks yielded -10.0%, -8.0%, and -7.2%, respectively, on the day.
CHK and NBR plunged due to the fall in oil prices on November 19. Meanwhile, THC got impacted by UnitedHealth Group’s (UNH) forewarned profit as explained in part 2.
THC traded at $30.4, or well below its respective 100-day, 50-day, and 20-day moving averages. The trailing-one-month return of the stock was -16.5% as of November 19. The trading volume of the stock surged to 5,362,394 stocks from 1,704,377 stocks on the previous day. Its Relative Strength Index (or RSI) is 37, nearing 30. When RSI approaches 30, it indicates that the stock is oversold and likely to be undervalued.
THC’s analyst price target is set at around $45.9, pointing to an upward potential of the stock price. The stock has earned 11 “Buy” recommendations, 10 “Hold” recommendations, and no “Sell” recommendations. Standard & Poor’s has rated the stock as “B” with a “Stable” outlook while Moody’s outlook was “Negative.”
On the other hand, Valeant Pharmaceuticals International (VRX) soared 15.7% on November 19. The stocks had suffered a huge plunge due to controversial allegations earlier. However, an analyst at Citigroup (C) stated in a note issued to clients that concern regarding Valeant’s pricing and accounting practices was “overdone.”
Now let’s take a glance at the UK stock market as of November 19.