U.S. Markets closed

Stocks To Watch: Five Below Falls, PVH Out of Fashion, Pinnacle IPO

Dan Berman
Hot Stock Minute

Five Below (FIVE) is more than 5% below where it closed yesterday. Shares are down sharply following the release of the company's earnings report. The discount chain says it made 39-cents a share, actually beating expectations by a penny. But it lowered guidance for the current quarter and the full year. People who've been holding this stock for the past 52-weeks have made healthy profits, but even prior to this morning's declines, shares have been down 14% this week.

PVH (PVH) also fell sharply after reporting yesterday afternoon. This is the parent company of labels like Calvin Klein and Tommy Hilfiger in addition to Philip Van Heusen, which is the source of its name. PVH actually beat estimates, coming in with $1.54 a share versus predictions of $1.50, so it's not clear why shares moved lower. Even with this morning's drop, shares are about 50% higher than they were back in May when they were trading around $72.

Biogen (BIIB) is up in premarket trading. The F.D.A. has approved its oral drug Tecfidera to treat multiple sclerosis. The key ingredient in the pills is a chemical once used to treat sofas, but it was found to cause rashes and blisters. Shares of Biogen are also up about 50% from their lows last spring. By the way, the global market for M.S. drugs is estimated to be around $14-billion a year.

We want to take another look at BlackBerry, which reported earnings this morning. Again, the company posted a surprise profit of 22-cents a share, but revenues were down. Blackberry says it lost 3-million subcribers in the last quarter, but feels it is turning a corner. Shares popped 10% when the report was first released, but then erased all gains.

We also want to mention Pinnacle Foods (PF), which is going to market today with its IPO. This is the parent company of brands including Duncan Hines, Birdseye, Van De Kamp's Fish Sticks and Lenders Bagels. Pinnacle is offering 29-million shares at $20 each. That's at the top of the $18 to $20 dollar range which it filed with the S.E.C. Pinnacle says it's aiming to issue 18-cent quarterly dividends, which would be an annual yield of about 3.8% if shares stay where they are.