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Barron's Picks And Pans: Allergan, Broadcom, Gap And More

Barron's Picks And Pans: Allergan, Broadcom, Gap And More
  • This weekend's Barron's shows why one key analyst has a contrarian view on the direction that health care costs are headed.
  • Other featured articles examine the prospects for pharmaceutical company facing new competition and an apparel retailer with a brand that is on a roll.
  • Also, stocks to defend against rising interest rates and how banks stocks have fared with increased volatility.

"Allergan's Stock Is Headed for a Face-Lift" by Vito J. Racanelli explains that while new competition to its top product, Botox, and the surprise loss of patent exclusivity for its second biggest, the dry-eye treatment Restasis, have left investors with worry lines, Allergan plc (NYSE: AGN) still has a promising pipeline, and a bargain stock price as well.

Jack Hough's "Old Navy Could Lift the Gap by 25%" makes the case that investors will be rewarded for sticking with clothing retailer Gap Inc (NYSE: GPS). See why Barron's believes the Old Navy brand, which contributes close to half of company sales, could generate three-quarters of its profits within two years.

In "Health Care Costs Could Drop," Jack Hough takes a look at why Tom Tobin, an analyst at Hedgeye, has the contrarian view that health care costs might actually be headed lower. Medical costs are growing more slowly than costs for other things that consumers buy. See what that may mean for HCA Healthcare Inc (NYSE: HCA) and others.

Rising interest rates can be a major headwind for higher-yielding stocks, according to "Stocks That Defend Against Rising Rates" by Lawrence C. Strauss. Find out why some of those stocks, including Exxon Mobil Corporation (NYSE: XOM) and Kimberly Clark Corp (NYSE: KMB), are well positioned to protect investors.

See also: What You Need To Know About Larry Kudlow, Trump's New Economic Advisor

In Tiernan Ray's "Why Broadcom's Plan B Looks Complicated," see why it won't be easy for chip maker Broadcom Ltd (NASDAQ: AVGO) to buy a large, compatible tech company with high margins, now that the White House has blocked its bid for Qualcomm on grounds of national security. So what will Broadcom try to buy as plan B?

"Banks: The Other Champions" by Ben Levisohn points out that bank stocks, which are usually considered the antithesis of tech stocks, have held up surprisingly well through the market's recent turmoil. See why Barron's recommends that investors keep an eye on Zions Bancorp (NASDAQ: ZION) and others.

Also in this week's Barron's:

  • The high costs of caregiving
  • Why the bulls should be nervous
  • What Jeffrey Gundlach is worried about now
  • A cheaper electric-car play than Tesla Inc (NASDAQ: TSLA)
  • How to cope with emerging market volatility
  • Agricultural products as trade war weapons
  • Tech companies that can crush rivals
  • What the next Goldman Sachs Group Inc (NYSE: GS) CEO must fix

Image credit: bargainmoose, Flickr


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