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 Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!