Why Illumina, Brookdale Senior Living, and Allscripts Healthcare Solutions Jumped Today

By Dan Caplinger Markets Fool.com

Tuesday was a mixed day for the stock market, as major market benchmarks gave up larger early gains to finish on either side of the unchanged mark. The Nasdaq Composite again outperformed, reaching a new record with modest gains, but the Dow and S&P 500 failed to make any headway toward regaining their all-time marks. Some of the weakness in the Dow in particular was due to declines among the higher-priced stocks in the average, which have a disproportionately large impact on the price-weighted index. Yet some stocks posted good gains, and Illumina (NASDAQ: ILMN), Brookdale Senior Living (NYSE: BKD), and Allscripts Healthcare Solutions (NASDAQ: MDRX) 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.

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Illumina's HiSeq sequencing unit is about to get some internal competition. Image source: Illumina.

Illumina points to another breakthrough

Illumina soared 16% after telling investors late Monday that it would introduce a new system to make further advances in the genetic sequencing industry. The company introduced the NovaSeq series, which it dubbed a new architecture designed to usher in the $100 genome. The purpose behind NovaSeq, according to Illumina, is to allow research using next-generation sequencing technology, and with a less expensive process, researchers will be able to conduct larger trials and projects in a cost-effective manner. In addition, Illumina announced a number of new collaborations, taking full advantage of the exposure of the J.P. Morgan Healthcare Conference, and believes that its revenue will come in higher than most investors had expected. Illumina's stock performed poorly in 2016, which puts its big rise so far in 2017 into the perspective of a potential turnaround.

Brookdale looks for a buyer

Brookdale Senior Living was up 15% in the wake of reports that the senior living center operator could be looking at strategic options including a potential sale of the company. According to The Wall Street Journal, private equity company Blackstone (NYSE: BX) and other possible buyers could be interested in making a deal for Brookdale, although its sources suggested the eventual outcome was far from certain. Brookdale stock hasn't done well in recent months, and the company has felt pressure to break off some of its assets into a separately traded entity. A sale would be simpler, and investors seem pleased that Brookdale has apparently been responsive to their wishes.

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Allscripts finishes 2016 strong

Finally, Allscripts Healthcare Solutions climbed 9%. The healthcare information technology specialist announced its preliminary fourth-quarter results late Monday, and Allscripts said it anticpates that bookings for the quarter will hit a new record level of more than $400 million. In addition, Allscripts affirmed its guidance for the fourth quarter, including adjusted revenue of $1.71 billion to $1.74 billion and earnings-per-share growth of 10% to 15%. As CEO Paul Black put it, "Our initial outlook for 2017 illustrates confidence this growth momentum will continue this year across Allscripts comprehensive offerings to payers and providers globally." With shares recently having slumped to their worst level since early 2013, investors hope this will mark a turning point for Allscripts going forward.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Illumina. The Motley Fool has a disclosure policy.