Why Canopy Growth, Kiniksa Pharmaceuticals, and Paycom Software Jumped Today
Wednesday wasn't a great day on Wall Street after investors finally gave in to fears that a trade deal between the U.S. and China might not come as quickly as hoped. Much of the recent market rally seemed to take for granted that the two nations would at least find a limited amount of common ground, but it could take until next year even to make the initial steps toward a broader agreement. Even with the major benchmarks finishing lower, some companies had good news that powered their stocks higher. Canopy Growth (NYSE: CGC), Kiniksa Pharmaceuticals (NASDAQ: KNSA), and Paycom Software (NYSE: PAYC) were among the top performers. Here's why they did so well.
Shares of Canopy Growth climbed 15%, regaining some of the ground the marijuana stock has lost over the couple of weeks. Cannabis stocks had generally poor earnings reports last week, and Canopy wasn't immune, with fears that the Canadian market might not be growing at the pace investors had counted on seeing. Yet analysts at Bank of America Merrill Lynch upgraded Canopy from neutral to buy, saying that the recent plunge in Canopy's share price gives the marijuana stock a reasonable valuation. Moreover, they think that inventory-related headwinds will abate soon, and that could pump the company's sales volume back up. Given how far cannabis stocks have fallen, a lot of investors are looking at them as a potential value play.
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Source Fool.com
