Xoma Corp (XOMA), WebMD Health Corp. (WBMD), and Sequenom, Inc. (SQNM): Three Humongous Healthcare Stocks This Week

Few sectors see as many stocks gaining in the double-digits each week as health care. The past week proved to be no exception. Here are three of the most humongous health-care stocks over the last five days.

XOMA Corp (NASDAQ:XOMA)Good omen
Xoma Corp (NASDAQ:XOMA)
reported first-quarter results on Wednesday. The company announced lower revenue compared with the same period last year, but the market didn’t care. Shares surged nearly 19% on other news from Xoma Corp (NASDAQ:XOMA).

The company said that encouraging interim results came in from a phase 2 study of gevokizumab in treating moderate to severe acne vulgaris. It also announced preliminary data from another phase 2 study of the drug in treating Behçet’s uveitis conducted by its French partner, Servier.

Results from the Servier study were enough to prompt financial-services firm Ladenburg Thalmann to increase its price target for Xoma Corp (NASDAQ:XOMA) from $5 to $6 per share. Ladenburg sees the phase 2 news as a good omen and thinks there could now be lower risk associated with an upcoming phase 3 trial for gevokizumab.

Surprise, surprise
A great year got even better for health-information provider WebMD Health Corp. (NASDAQ:WBMD). The company reported first-quarter results this week that surprised the market with higher revenue and net income than were expected. Shares were up nearly 17% for the week.

WebMD Health Corp. (NASDAQ:WBMD) announced a loss for the first quarter of $0.03 per share. That surprised analysts, who were expecting a $0.15-per-share loss. The figure also reflects considerable improvement over the $0.14-per-share loss from the same period in 2012.

The company’s revenue for first quarter totaled $112.8 million. Analysts expected only $106.6 million in revenue.

Observers got one other surprise. WebMD Health Corp. (NASDAQ:WBMD) announced the departure of its CEO, Cavan Redmond. David Schlanger, who previously served the company as senior vice president of strategic and corporate development, will replace Redmond on an interim basis.

Top line makes everything fine
Sequenom, Inc. (NASDAQ:SQNM)
lost more money in the first quarter than it did in the same period last year. The life-sciences company also missed the average analyst earnings estimate. Did shares fall? Nope — they jumped 14%.

Strong top-line growth appears to be the catalyst for Sequenom, Inc. (NASDAQ:SQNM). The company reported first-quarter revenue of $38.5 million, a whopping 158% year-over-year increase. Its diagnostic services revenue grew 38% from the fourth quarter of 2012.

Sequenom, Inc. (NASDAQ:SQNM)’s MaterniT21 Plus fetal test saw exceptionally strong results. CEO Harry F. Hixson Jr. said that 35,000 of these tests were accessioned during the first quarter, bringing the total volume since the product was launched in late 2011 to more than 100,000. Hixson also noted that company has made significant process in obtaining approval for reimbursement of MaterniT21 Plus.

Staying power
Which of this week’s humongous performers is most likely to keep good news flowing for investors? All three potentially could continue rewarding shareholders.

Overall, though, I give the nod to WebMD Health Corp. (NASDAQ:WBMD). The company experienced a dismal 2012, but things are looking up. It has a strong brand and the CEO change is a good move in my view.

The article 3 Humongous Health-Care Stocks This Week originally appeared on Fool.com.

Fool contributor Keith Speights and The Motley Fool have no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!