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Today’s Stocks to Watch: Boeing, Kenvue, and Humana

octubre 21, 2024 OnEquity

Key points:

  • Humana stock increased due to rumors of a possible acquisition by Cigna.
  • Starboard Value bought a stake in Kenvue, boosting its stock value.
  • Boeing reached an agreement in principle that could end the strike.

Boeing (BA) Moves Toward Ending the Strike

Boeing has reached a tentative agreement with the machinists’ union, which could end the strike that has paralyzed much of its production. Boeing shares rose more than 3% in pre-market trading, reflecting the positive impact of the agreement on its valuation. This move is crucial for the company, which had experienced significant delays in its production line due to the strike. Investors are closely watching developments in the negotiation, as it could have long-term implications for Boeing’s operational strength.

Kenvue (KVUE) Rallies After Starboard Value’s Stake Purchase

Kenvue saw a gain of more than 5% in pre-market trading after Starboard Value, an activist investment fund, bought a sizable stake in the company. Starboard intends to implement changes to boost Kenvue’s share price. Kenvue, which spun off from Johnson & Johnson last year, has sparked optimism among investors, who hope these proposed changes will improve the company’s near-term profitability. Kenvue remains a key player in the consumer products sector, and this development could mark a turning point in its financial trajectory.

Humana (HUM) Rises on Strong Cigna (CI) Acquisition Rumors

Humana is up more than 4% in pre-market trading, following Bloomberg reports that Cigna Group has revived its efforts to acquire its rival. These rumors have generated strong interest in Humana shares, as a merger with Cigna could solidify its position in the health insurance market. Investors are closely watching for progress in these talks, as a potential buyout could reshape the competitive landscape of the U.S. healthcare sector.

Walmart (WMT) Reaches Opioid Settlement

Walmart has announced a preliminary settlement of three shareholder lawsuits related to opioid distribution. While the immediate effect on the stock was minimal, this settlement is a significant breakthrough in the company’s ongoing legal battles. Resolving these lawsuits could relieve Walmart of substantial legal burdens, allowing the company to focus its resources on growth and expansion.

Upcoming Earnings Reports

SAP (SAP) is one of the companies set to release its results after the market closes. Other companies reporting earnings this week include General Motors (GM) on Tuesday, Tesla (TSLA) and IBM (IBM) on Wednesday, and United Parcel Service (UPS) on Thursday. Investors will be closely watching these reports, as they could provide a clearer picture of these companies’ performance in a challenging economic environment.

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