Top Biotech Stocks For 2014

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

What: Shares of obesity-fighting biotech Arena Pharmaceuticals (NASDAQ: ARNA  ) shed as much as 11% today following its first-quarter earnings results and the company announcing the withdrawal of its European Union marketing application for Belviq.

So what: For the quarter, Arena Pharmaceuticals saw its loss narrow to just $0.09 from $0.18 in the year-ago period as revenue moved modestly higher to $2.37 million. Unfortunately, analysts had expected the Drug Enforcement Agency to have labeled Belviq by now and for Arena to have accepted a milestone payment from marketing partner Eisai Pharmaceuticals. Given that neither has happened, Arena’s results were well short of the $68.3 million in revenue and $0.20 profit that the Street had expected.

Top Biotech Stocks For 2014: Omnicom Group Inc.(OMC)

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It offers services in traditional media advertising, customer relationship management, public relations, and specialty communications groups. The company?s services include advertising, brand consultancy, corporate social responsibility consulting, crisis communications, custom publishing, database management, digital and interactive marketing, direct marketing, directory advertising, entertainment marketing, environmental design, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts, healthcare communications, and instore design. Omnicom Group also offers investor relations, marketing research, media planning and buying, mobile marketing services, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, public relations, recruitment communications, reputation consulting, retail marketing, search engine marketing, and sports and event marketing services. It offers its services in the Americas, Europe, the Middle East, Africa, Asia, and Australia. The company was founded in 1944 and is based in New York, New York.

Advisors’ Opinion:

  • [By Martin]  

    Omnicom Group provides advertising, marketing and corporate communications services. OMC recently traded at $37.1 and has a 2.7% dividend yield. OMC gained 3.7% during the past 12 months. The stock has a market cap of $10.4 billion, P/E ratio of 12.2 and forward P/E ratio of 10. The stock has total debt/equity ratio of 0.9 and Beta of 1.16.

  • [By Geoff Gannon]