Sprint Nextel Corporation (NYSE:S)
S stockholders will have much to celebrate at the communications company's special shareholders meeting being held on Tuesday, June 25, in Overland Park, Kan., considering the stock has advanced a whopping 108% year-over-year to its current perch of $6.84. Moreover, during the course of the past three months, S has outperformed the broader S&P 500 Index (SPX) by almost 11 percentage points, and on May 31, it hit its multi-year high of $7.50. On the agenda is a vote for (or against) a merger with SoftBank.
With this vote looming, options speculators have bought to open more than two calls for every put throughout the last 50 sessions, according to S' International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) 50-day call/put volume ratio of 2.14. However, this ratio ranks a mere 9 percentage points higher than its 12-month nadir, meaning call activity relative to put activity is at a near-annual low.
Jumping outside the options pits, 15 of the 20 analysts weighing in on S give it a "hold" or worse recommendation, while only five endorse it as a "buy" or better.< p>
Cisco Systems, Inc. (NASDAQ:CSCO)
CSCO will hold its first Investor Day on June 25 and 26 at its annual week-long Cisco Live event in Orlando, Fla. During this, interested individuals may tune in to live general sessions, which will include corresponding slide presentations. Likely to be discussed is CSCO's positive performance on the charts as of late. The stock has climbed roughly 17% throughout the last three months, surpassing the broader SPX by 15.5%. Not to mention, CSCO reached a new multi-year high of $ 24.98 -- 5 cents higher than analysts' price target of $24.93 -- on June 18, and currently sits just below the mark at $24.25.
Bullish sentiment toward CSCO runs high in and out of the options pits. More specifically, the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.51 ranks in the 4th percentile of its annual range. This means that put open interest for options with a shelf-life of three months or less has rarely been this low during the last 12 months, with call open interest outnumbering it by a margin of 2-to-1. Likewise, 23 of the 31 analysts weighing in on the stock give it a "buy" or better endorsement, while only seven consider it a "hold," and one sees it as a "strong sell."
CarMax, Inc (NYSE:KMX)
On Wednesday, KMX Vice President of Investor Relations Katharine Kenny will give a presentation at the Oppenheimer 13th Annual Consumer Conference in Boston, Mass. Since the purpose of the conference is to analyze the current state of four major sectors -- Consumer, Household and Personal Products, Restaurants, Specialty Hardlines, and Specialty Retail -- and assess the performance of the stocks in the second half of the year, Kenny may reference KMX's 70.5% year-over-year gain, and its all-time high of $48.86, reached on May 16.
On the topic of what is to come for KMX, the brokerage bunch seems to hold high hopes. Of the 12 analysts weighing in on the stock, eight endorse it as a "buy" or better, while four give it a lukewarm "hold" rating. Likewise, their consensus price target stands at $48.32, 10.3% north of the equity's current dock at $43.80.
Bullish sentiment is evident in KMX's options pits, as well. In fact, speculators have bought to open 130 calls for every 100 puts during that past four weeks, according to the stock's ISE/CBOE/PHLX 20-day call/put volume ratio of 1.30. Still, short interest accounts for 4.62% of the stock's available float, meaning pessimism among stock traders is relatively high. Therefore, it could be that call activity is heavy due to short sellers hedging their bearish bets.
Tractor Supply Company (NASDAQ:TSCO)
Also scheduled to attend the Oppenheimer Consumer Conference are TSCO's President and CEO Greg Sandfort, and Director of Invest or Relations Randy Guiler. During its presentation on Tuesday, the rural lifestyle supplier, like KMX, will have much to brag about, considering the stock has jumped 23.6% year-to-date to its current price of $109.25. Even more impressive, TSCO grasped a new all-time high of $117.95 on June 19.
The brokerage bunch expects TSCO to continue its climb to new peaks in the near future, as evidenced by their consensus price target of $119.91. Likewise, 18 of the 24 analysts weighing in on the stock give it a "buy" or better endorsement, while six consider it a "hold."
Even more, TSCO's ISE/CBOE/PHLX 50-day call/put volume ratio stands at 2.24, meaning speculators have bought to open more than two calls for every put during the last 10 weeks. This ratio ranks in the 89th percentile of its annual range, suggesting that speculators' appetite for calls over puts is healthier-than-usual.
Other companies set to attend the consumer conference include Jack in the Box Inc. (NASDAQ:JACK) and Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA).
Recent XIV Action May Bode Well for Bulls
Featured Partners: AOL DailyFinance
© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: firstname.lastname@example.org
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.