Here’s Why Traders Are Watching Tesla, ICU Medical, Pfizer, and Two Other Stocks Today

The broader indexes are in the red today as some traders take profits before Friday’s critical employment report. Among the stocks making some headlines include Tesla Motors Inc (NASDAQ:TSLA), ICU Medical, Incorporated (NASDAQ:ICUI), Pfizer Inc. (NYSE:PFE), Costco Wholesale Corporation (NASDAQ:COST), and Lowe’s Companies, Inc. (NYSE:LOW).

In this article, we will take a closer look at the catalysts behind each stock and will see how the investors from our database were positioned towards them at the end of the second quarter.

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Tesla Motors Inc (NASDAQ:TSLA) shares are off by more than 3.6% after Goldman Sachs downgraded Elon Musk’s company to ‘Neutral’ from ‘Buy’, citing the increasing risks due to the additional capital required for SolarCity Corp (NASDAQ:SCTY) M&A. The investment bank also thinks that increased R&D and sales expenditures, along with potentially slower-than-expected production of the Model 3 could cause Tesla’s bottom-line to fall substantially below the Street’s expectations between 2017 and 2019. The investment bank has a $185 target for the next six months, down from the previous $240. A total of 36 funds from our database were long Tesla Motors Inc (NASDAQ:TSLA) at the end of June, down by three funds from the previous quarter.

ICU Medical, Incorporated (NASDAQ:ICUI) has surged by 11% after the company agreed to buy Pfizer Inc. (NYSE:PFE)‘s global infusion therapy business, Hospira Infusion Systems, for $1 billion in cash and stock. Under the terms of the deal, Pfizer will receive $600 million in cash subject to an adjustment for net working capital, along with $400 million in newly-issued shares of ICU Medical common stock. Upon completion, which is expected to occur in the first quarter of 2017, Pfizer will own around 16.6% of ICU. In addition to the acquisition announcement, ICU Medical has also issued preliminary third quarter results, which included revenue of $96 million and adjusted EPS of $1.2. For the full year, ICU Medical expects the results to come in slightly above the high end of the previously announced guidance of $4.60 in adjusted diluted earnings per share, $131 million in adjusted EBITDA, and $370 million in sales. At the end of June, 16 funds tracked by us held shares of ICU Medical, Incorporated (NASDAQ:ICUI) and 94 funds were long Pfizer Inc. (NYSE:PFE).

On the next page, we examine Costco Wholesale Corporation, and Lowe’s Companies.

Costco Wholesale Corporation (NASDAQ:COST) is in the spotlight today after the company posted its September sales results. For the five weeks ended October 2, the retailer reported net sales of $11.06 billion, an increase of 3% on the year. Comparable sales for the period rose by 1% year-over-year, lead by a 6% year-over-year increase in Canadian comp sales. Warren Buffett’s Berkshire Hathaway owned around 4.33 million shares of Costco Wholesale Corporation (NASDAQ:COST) at the end of June.

Lowe’s Companies, Inc. (NYSE:LOW) shares are in the red today after Cleveland Research analyst Eric Bosshard downgraded the home retailer’s stock to ‘Neutral’ from ‘Buy’. Bosshard’s research suggests that demand from various end markets could be moderating. Given that, the analyst thinks Lowe’s will find it hard to maintain the growth needed to beat the Street’s estimates. Bosshard is also somewhat concerned about the company’s diversification initiatives as it may distract execution. The number of investors from our database with holdings in Lowe’s Companies, Inc. (NYSE:LOW) rose by three quarter-over-quarter to 67 at the end of June.

Disclosure: none