Traders Are Watching Closely Illumina, Edwards Lifesciences & Three Other Stocks Today

The markets are relatively quiet today amid the ongoing earnings season and after the Fed’s decision to keep the interest rates unchanged, but hinting towards an increase in the near future.

In contrast, the shares of five companies, Illumina, Inc. (NASDAQ:ILMN), Goodyear Tire & Rubber Co (NASDAQ:GT), Edwards Lifesciences Corp (NYSE:EW), Quintiles Transnational Holdings Inc (NYSE:Q), and Wyndham Worldwide Corporation (NYSE:WYN) are showing more volatility than the indexes for various reasons. Let’s find out why traders are buying and selling and see what the smart money thinks about each stock.

Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).

Most Affordable Chemical Engineering Schools in The US
Demand Rebounds at Illumina

Illumina, Inc. (NASDAQ:ILMN)’s shares have rocketed more than 8% after the company reported earnings of $0.86 per share on revenue of $600 million for the second quarter, beating the average analyst estimates by $0.13 per share and $6.88 million, respectively. Sales appreciated by 11% year-over-year, as demand for the company’s sequencing consumable and array products strengthened. The gross margin for the quarter inched up to 70.6% from 69.8% year-over-year and Illumina’s management sees adjusted 2016 EPS coming in at $3.48 to $3.58 on sales growth of 12% year-over-year. A total of 35 funds from our database were long Illumina, Inc. (NASDAQ:ILMN) at the end of the first quarter.

Follow Illumina Inc. (NASDAQ:ILMN)

Goodyear Earnings Ahead of Expectations

Although its second-quarter revenue of $3.9 million missed analysts’ estimates by $20 million, Goodyear Tire & Rubber Co (NASDAQ:GT)’s shares are almost 4% in the green today as traders bid up the stock due to an earnings beat. For the three months ended June 30, Goodyear earned $1.16 per share, versus estimates of $1.03. Goodyear achieved a 13.9% operating margin for its Americas unit and a 17.4% operating margin for its Asia Pacific segment. In addition, the company completed $100 million worth of share buybacks in the time period and management has reaffirmed previously communicated 2016 financial targets. The number of investors tracked by us with holdings in Goodyear Tire & Rubber Co (NASDAQ:GT) fell by one quarter-over-quarter to 36 at the end of March.

Follow Goodyear Tire & Rubber Co (NASDAQ:GT)

On the next page, we find out why Edwards Lifesciences Corp, Quintiles Transnational Holdings Inc, and Wyndham Worldwide Corporation are trending this afternoon.

Edwards Soars on Results

Edwards Lifesciences Corp (NYSE:EW) bulls are having a good day after the company reported EPS of $0.76 on sales of $759.3 million for the second quarter, beating the consensus estimates by $0.06 per share and $35.04 million, respectively. Shares of the company are higher as sales rose by 22.1% year-over-year and full 2016 revenue is seen coming in at the high end of the previously communicated range of $2.7 billion to $3 billion. 2016 adjusted EPS estimate has also been increased to the range of $2.78 to $2.88 as demand for the company’s products remains strong. Among the funds we follow, 45 funds were long Edwards Lifesciences Corp (NYSE:EW) at the end of the first quarter, up by eight funds from the previous quarter.

Follow Edwards Lifesciences Corp (NYSE:EW)

Quintiles Retreats Despite Solid Quarter

Although its earnings beat estimates by $0.03 per share and its sales exceeded the consensus by $20 million, traders were evidently expecting more from Quintiles Transnational Holdings Inc (NYSE:Q)‘s second quarter. Shares of the company are down 3.5% in afternoon trading despite the company reporting EPS of $0.93 on sales of $1.17 billion (up by 9.3% year-over-year). The book-to-bill ratio was 1.41 for the time period while the backlog amounted to $12.5 billion as of June 30, 2016. Full-year adjusted EPS guidance is $3.78 to $3.88, representing an annual growth of 13.5% to 16.5%. Cliff Asness’ AQR Capital Management owned more than 2.1 million shares of Quintiles Transnational Holdings Inc (NYSE:Q) at the end of the first quarter.

Follow Iqvia Holdings Inc.

Wyndham in the Red

Traders are watching Wyndham Worldwide Corporation (NYSE:WYN) today after the company delivered earnings of $1.40 per share on sales of $1.4 billion in the second quarter. Although Wyndham’s profit beat the consensus estimate by $0.03 per share, its sales missed the expectations by $40 million and the company’s Domestic REVPAR rose by only 2.4% year-over-year. For full 2016, management estimates adjusted diluted EPS in the range of $5.68 to $5.82, based on a diluted share count of 112 million. Adjusted EBITDA is seen coming in at $1.375 billion to $1.4 billion and revenue is seen to be in the range of $5.65 billion to $5.8 billion. At the end of the first quarter, 23 funds owned $1.07 billion worth of Wyndham Worldwide Corporation (NYSE:WYN)’s stock, which accounted for 12.50% of the float, versus 27 funds and $1.19 billion, respectively, a quarter earlier.

Follow Wyndham Destinations Inc. (NYSE:WYND)

Disclosure: none