Why Are These Four Stocks Making A Late Surge?

Novavax, Inc. (NASDAQ:NVAX) is up by 11.2% as sentiment among investors improves. Analysts are optimistic, as seven analysts have a ‘Buy’ rating, while one has a ‘Hold’ rating, with their consensus price target standing at $15.50. The smart money on the other hand is not overly bullish, as 17 funds owned $119.07 million of the company’s shares, or just 4.00% of its outstanding common stock, on June 30, with Baker Bros. Advisors also holding a large position in Novavax, Inc. (NASDAQ:NVAX), of 1.95 million shares. Shares of the biotech company are down by almost 50% from their highs in early August but are still up by more than 15% year-to-date.

Diamond Offshore Drilling Inc (NYSE:DO) shares are up by 12.7% after the company reported third quarter earnings of $0.99 per share on revenues of $609.74 million, beating estimates by $0.39 per share and $15.19 million, respectively. In conjunction with its earnings report, Diamond Offshore also announced that Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) will terminate contracts for two Diamond Offshore rigs ahead of schedule in exchange for extending another contract by 875 days. Although shares of offshore drillers have been beaten up due to low crude prices, Diamond Offshore Drilling Inc (NYSE:DO) may have an opportunity to buy assets on the cheap as it has one of the cleanest balance sheets in the sector. This quarter’s earnings report was pretty good, and shares will rise once crude prices rebound. Southeastern Asset Management owned 1.3 million shares of Diamond Offshore at the end of the second quarter.

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