Schaeffer's Trading Floor Blog
Stocks quoted in this article:

U.S. stocks are notably higher this afternoon, on news that former U.S. Treasury Secretary -- and suspected hawk -- Larry Summers has pulled his name from the hat of potential Ben Bernanke successors. Among the equities in focus are social networking concern Facebook Inc (NASDAQ:FB), delivery giant United Parcel Service, Inc. (NYSE:UPS), and yoga apparel provider Lululemon Athletica inc. (NASDAQ:LULU), which have all attracted the attention of analysts.

  • FB is bucking the broad-market trend higher, down 2.4% at $43.26 in spite of a price-target lift to $52 from $46 at Goldman Sachs. From a longer-term perspective, FB is killing it on the charts, as the stock has roughly doubled over the past year. In fact, FB just touched a record high of $45.62 last week. However, there's still room on the bullish bandwagon. The consensus 12-month price target among analysts sits at $42, representing a discount to Facebook Inc's (NASDAQ:FB) current price.

  • Moving on, UPS is up 1.3% at $89.79, after Barclays upgraded the shares to "overweight" from "equal weight." The upbeat attention is relatively rare for UPS, with just nine out of 20 analysts offering up "buy" or better opinions. Plus, short interest climbed 19.6% during the past two reporting periods, and now represents nearly eight sessions' worth of pent-up buying demand, at the stock's average pace of trading. What's more, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.95 sits just 18 percentage points from a 12-month peak, suggesting United Parcel Service, Inc.'s (NYSE:UPS) short-term option traders are more put-skewed than usual right now.

  • Finally, LULU has surged 2.4% to $70.00 -- effectively closing its earnings-induced bear gap -- after Credit Suisse upgraded the stock to "outperform" from "neutral," and downgraded sector peer Under Armour Inc (NYSE:UA). (Stifel and Barclays, on the other hand, trimmed their price targets on LULU.) Most of Wall Street remains in the bearish camp, as 16 out of 26 brokerage firms consider LULU a "hold" or worse. In addition, short interest accounts for 16.1% of Lululemon Athletica inc.'s (NASDAQ:LULU) total available float, and would take more than two weeks to unwind, at the stock's average daily trading volume.

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