Why Valeant Pharmaceuticals International, Denbury Resources, and Kindred Healthcare Jumped Today
The stock market had a relatively quiet day on Tuesday, leaving major benchmarks little changed from yesterday's close. After initial optimism about the prospects for tax reform, investors seem to now grasp the challenge in getting legislation through Congress quickly enough to implement changes for the 2018 tax year. Many believe that the strong performance in stocks in 2017 has hinged on eventual reductions in the corporate tax rate, and if tax reform grows less certain, markets could see their volatility levels increase. Yet several individual companies enjoyed good news that lifted their shares, and Valeant Pharmaceuticals International (NYSE: VRX), Denbury Resources (NYSE: DNR), and Kindred Healthcare (NYSE: KND) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Shares of Valeant Pharmaceuticals International jumped 17% after the controversial drug manufacturer posted its third-quarter financial report. Revenue for the company was down more than 10% from year-earlier figures, but it managed to earn a profit thanks to a one-time tax benefit. Even though Valeant suffered from issues like the loss of patent exclusivity on some of its treatments, growth in areas like its Bausch + Lomb business and its Salix drug unit helped to bolster confidence about the overall company's future. Valeant still has a lot of work to do, and continuing to cut its debt and find ways to bolster sales and profits will be priorities going forward. Still, Valeant made enough progress to satisfy shareholders for the time being.
Image source: Denbury Resources.
Source: Fool.com
