After a sizzling earnings report on Monday, Morgan Stanley’s downgrade of SoFi (SOFI) sent shares lower days later. Expect strong trading volume as buyers pick SOFI shares on the drop. In the deep value segment, Pfizer’s (PFE) inexpensive valuation of a 10x forward P/E could attract bargain hunters.
Pfizer shares yield 6.22% in dividends and could keep rising, indicating skepticism of its safety. It posted revenue falling by 41% Y/Y. Covid vaccines and anti-virals (Paxlovid), are no longer revenue drivers.
From the buyout chatter, Paramount (PARA) may head closer to Byron Allen’s $14.3 billion bid, or $28.58 a share for the voting shares. The bid is $21.53 for the non-voting shares. Unfortunately for Shari Redstone, Allen’s bid is Paramount is below its April bid of $18.5 billion (per a WSJ report).
Markets are unwilling to speculate that Comcast (CMCSA) would bid for Paramount or Warner Bros Discovery (WBD). WBD stock closed at around $10 on Jan. 31.
S&P 500 stocks that closed at 52-week highs yesterday included Cardinal Health (CAH), Phillips 66 (PSX), Chubb (CB) after it posted strong quarterly results, and Stryker (SYK). DuPont de Nemours (DD) and Mosaic (MOS) closed at a 52-week low. Traders may take profits in the former and buy the dip in the latter stocks.
Energy stocks could get hot today. ExxonMobil (XOM) and Chevron (CVX) will post results tomorrow on Friday.
