⚕️Is Radiopharma the Next Big Buy?

Plus, a new player is stirring the mac & cheese pot.

September 16, 2024

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Happy Monday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

  • 🟨 | US stocks were mixed on Monday. The S&P 500 barely moved, gaining 7 points or 0.1%, as investors anticipate the Federal Reserve's first rate cut since 2020. The Dow Jones rose 0.6%, and the Nasdaq dropped 0.5%.

  • 📈 | One Notable Gainer: Nuvalent shares surged 28% to a record high after the biopharmaceutical company reported positive data on two experimental cancer treatments, both showing "favorable tolerability."

  • 📉 | One Notable Decliner: Micron Technology shares fell 4% after Morgan Stanley lowered its price target, citing concerns about the company's slowing growth, while maintaining an equal weight rating.

  • ⚕️ | Tomorrow's Trade: Is Radiopharma the Next Big Buy? Scroll down for more.

Plus, get free trade alerts sent straight to your phone with Bullseye Trade.

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S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

AA (+6%) Alcoa Stock Rises After Company Sells Stake in Saudi Arabia Joint Venture (Investopedia)

INTC (+6%) Intel awarded up to $3 bln from US for national security related chip production (Reuters)

Z (+5%) Zillow Stock Builds On Breakout After Upgrade. Analyst Sees Positives Beyond Falling Rates. (Investor’s Business Daily)

AAPL (-3%) Apple shares slide as analysts highlight sluggish iPhone 16 demand (CNBC)

BLCO (+14%) Bausch + Lomb Stock Jumps Amid Reports Of A Sale (Investopedia)

OVERHEARD ON THE STREET

Dow Jones Newswires: Pfizer will advance its experimental cancer cachexia drug, ponsegromab, to late-stage trials after a successful Phase 2 study showed weight gain.

CNBC: Charter’s Spectrum introduces new pricing and service upgrades, focusing on reliability amid shifts in broadband and mobile business growth.

Yahoo News: Over the weekend, DirecTV and Disney settled a 13-day network dispute, restoring service for 11M subscribers just in time for the first college football games.

Reuters: Boeing will pay Embraer $150 million to settle disputes over its withdrawal from a $4.2 billion deal to acquire Embraer’s jet operations.

MarketWatch: Target and Amazon will kick off October sales, targeting budget-conscious shoppers with significant discounts amid ongoing inflation.

TOMORROW’S TRADE IDEA, TODAY

This Medical Breakthrough Could Benefit Patients and Investors

A New Type of Treatment

Radiopharmaceuticals isn’t a cure for cancer, but it’s a step in the right direction. This new technology is used to detect and treat cancer without damaging healthy cells, as well as provide more accurate diagnoses.

The pharmaceutical industry is all in on it, and acquisitions are in full swing. Analyst Ed Ridley-Day believes the market will grow to $215 billion by 2035 from $2 billion last year. This has implications for patients, companies, and investors alike.

AstraZeneca

AstraZeneca (AZN) purchased Fusion Pharmaceuticals for $2.4 billion in June. Its official entry into the emerging sector is what makes Ridley-Day believe it’s a buy. 

The analyst feels that the one-time vaccine-maker’s budding radiopharma business will begin contributing to its sales numbers by 2029, when its prostate cancer therapy treatment is projected to launch. 

Aside from its radiopharma therapies, Fusion will also provide AstraZeneca with dependable manufacturing and supply. Other pharma players have made notable acquisitions in the space, including Bristol-Myers Squibb, Eli Lilly, and Novartis. But it stands to provide the most holistic boost to AstraZeneca, Ridley-Day argues.

Lantheus

Beyond the therapeutic implications, radiopharma has created diagnostic opportunities — and several companies are leveraging those too.

Ridley-Day recently initiated coverage on Lantheus (LNTH) with a Buy rating and a $175 price target. That represents nearly 75% upside from current prices. 

According to Ridley-Day, it is a top supplier of radiopharma diagnostic agents and is working to get into the radiopharma therapeutics space as well. The analyst said the technology resulted in some 78% of Lantheus’ revenue.

With the sector set to soar in the next decade, the analyst believes Lantheus could rise with it.

Are you bullish or bearish on AstraZeneca (AZN) and Lantheus (LNTH) over the next 12 months?

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The stock market can be a rewarding opportunity to grow your wealth, but who has the time??

Full time jobs, kids, other commitments…with a packed schedule, nearly 150,000 people turn to Bullseye Trades to get free trade alerts sent directly to their phone.

World renowned trader, Jeff Bishop, dials in on his top trades, detailing his thoughts and game plan.

Instantly sent directly to your phone and email. Your access is just a click away!

ON OUR RADAR

CNBC: Nestlé's Stouffer's launches shelf-stable mac and cheese, aiming to challenge Kraft Heinz in the $2.9B boxed mac and cheese market.

Reuters: TikTok urged a federal appeals court to block a U.S. law banning the app by Jan. 19, citing free speech concerns, but faced tough questioning.

QZ: Chipotle is deploying two robots in California, including "Autocado," to streamline avocado prep and enhance service at its Huntington Beach location.

Axios: Brazil’s top judge lifted the freeze on Musk’s Starlink and X accounts after a $3M fine, ending a standoff with Justice Alexandre de Moraes.

Reuters: The U.S. dollar hit a one-year low against the yen as markets anticipate a potential 50-bps Fed rate cut this week.

FRIDAY’S POLL RESULTS

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨⬜️⬜️⬜️ 🐻 Bearish

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