Dick's Sporting Goods Inc. (DKS:NYSE) defied recession worries this morning when it announced fourth-quarter earnings would fall near analyst expectations. Aside from noncash impairment charges related to its Golf Galaxy acquisition, the company expects to earn 49-56 cents per share this quarter.
Investors were clearly expecting the worst, because the good news sent shares way up this morning. As we type, the stock is up about 17% on the day.
Even better is that the stock is still in your buy range…
Action to take: Shares of Dick's Sporting Goods Inc. (DKS:NYSE) remain a buy up to $16 per share.
Setting the Stage for a Rally in Arena
In just a few short weeks, Arena Pharmaceuticals Inc. (ARNA:NASDAQ) could have the data it needs to move forward with its revolutionary new weight loss drug, Locaserin. The company will release key data from one of the final patient studies sometime in March.
According to CEO Jack Leif, talks continue to find a major firm to partner up with Arena for marketing and distribution. However, Leif told Reuters that potential partners are interested in seeing these new data when they becomes available.
So the timetable is set. If results are everything we're hoping for next month, we should hear about a solidified partnership sooner, rather than later. That will leave us with only one more statistical hurdle -- the second 4,000-patient trial results, tentatively scheduled for release in early autumn.
The stage is set. Good results in March will more than likely be enough for Arena to snag a partner. And we're confident that these data will prove the drug has legs. Remember, Locaserin's efficacy was not the main concern in a majority of its late-stage trials. Instead, it was safety. Arena has made certain not to repeat mistakes made by the makers of Fen-phen -- also a serotonin activator -- that ended in class action lawsuits over heart problems linked to the drug.
The bottom line is this: Locaserin works. And it will help patients lose weight. All of the safety data so far have been more than acceptable. If this trend continues, even the most skeptical regulator should have what he needs to approve this medication.
Even the public is becoming more confident regarding Arena's prospects. Stock is up more than 35% this week. Most of the gains came Wednesday, when Arena announced it will present at the BIO CEO & Investor Conference next week.
Action to take: Continue to hold shares of Arena Pharmaceuticals Inc. (ARNA:NASDAQ)
Looking Ahead, Terex's Future Shines
Terex Corp. (TEX:NYSE) just trimmed its fourth-quarter profit guidance by 24 cents, to $5.40 per share. In any other market at any other time, this would have caused a massive sell-off. For a company with Terex's growth and market position to miss a number would have caused panic. Luckily, investors are starting to catch on.
Instead of looking at this one quarter -- or even one year -- investors are beginning to pay more attention to the company's long-term outlook. The consensus is clearly shifting. Investors expect the infrastructure spending to grow. For Terex, this will translate into higher heavy equipment revenues.
That's why Terex shares are rising. The stock steadily climbed to $14 from the announcement on Tuesday. That's good for a $2.50 jump, or more than 21%.
Action to take: Shares of Terex Corp. (TEX:NYSE) remain a buy up to $17.50.
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