Schaeffer's Trading Floor Blog

Highs & Lows: Kellogg, Facebook, and United Natural Foods

UNFI rides earnings to a new high while K, FB, ARUN, NAV, and SI enter new low territory for the year

by 6/5/2012 1:14 PM
Stocks quoted in this article:

Among the stocks dropping to new lows or cresting to new highs in today's trading are United Natural Foods, Inc. (UNFI), Kellogg Company (K), Navistar International Corporation (NAV), Facebook Inc (FB), Aruba Networks, Inc. (ARUN) and Siemens AG (ADR) (SI). The major indexes have been flirting with breakeven today as they balance mixed news overseas and at home. New highs and new lows are not as prevalent as in days past; the NYSE has seen 21 new highs and 42 new lows while the NASDAQ is showing 13 new highs and 35 new lows.

Notable Stocks at Annual Lows

  • Barclays reinstated Kellogg Company (K - 48.33) with an "equal weight" rating today, but the stock touched a new annual low of $47.88 today before returning back to virtually unchanged for the day. In 2012 so far, the shares have been relatively flat, down 4.5% and only slightly lagging the S&P 500 Index (SPX) despite a near-oversold Relative Strength Index (RSI) reading of 22. Analysts are collectively indifferent toward the stock, as evidenced by 13 "hold" ratings from the 17 covering brokers.

  • Options traders have begun to employ longer-term bearish strategies on Facebook Inc (FB - 26.37), as the stock drifts to yet another new low of $26.23 today. Since its initial public offering (IPO) price of $38 set on May 18, the shares have backpedaled a staggering 30%. The half-dozen analysts who follow FB are trying to be optimistic, however, awarding four "strong buys" and one "buy," leaving just one "hold" in the bunch.

  • Navistar International Corporation (NAV - 26.87) suffered a downgrade at the hands of Baird today as the firm lowered its price target by a whopping 44% to $31 from $56. The stock has been in a sharp short-term downtrend since late January, and things don't seem to be looking up, as NAV's 160-day and 80-day moving averages recently completed a bearish crossover. The stock is down more than 29% year-to-date and today hit a new annual low at $25.50.

  • Aruba Networks, Inc. (ARUN - 12.91) is trading almost 2.5% higher in midday action, but earlier today the stock registered a new annual low of $12.36. The stock has underperformed the SPX by 42% in the past three months but 13 of 19 analysts still rate the stock a "buy" or better. Any future upgrades could spur some short-term selling pressure on the shares, driving them to further lows.

  • Moody's upped its rating on Siemens AG (ADR) (SI - 79.93) to Aa3 with a "stable" outlook, but the Street has punished this faint praise by dropping the stock to $79.60, its lowest point in 52 weeks. In 2012 so far, shares of the electronics company have lost more than 16% of their value. What's more, the shares ended May below their 160-month moving average for the first time since the trendline formed in mid-2010. The equity's RSI is approaching oversold territory at 27, but meanwhile four of seven covering analysts still think SI is worthy of a "buy" rating.

Notable Stock at Annual Highs

  • United Natural Foods, Inc. (UNFI - 50.82) has stretched to a new annual high of $53.99 today and a year-to-date gain of 27% thanks to a strong earnings showing. Both earnings per share and revenue for the third quarter topped analysts' estimates, and UNFI officials sweetened the deal by lifting their fiscal-year guidance. UNFI shares have been in uptrending mode since early December and recently tested support at their 80-day moving average. It's a mixed bag among analysts, with six "buy" or better ratings, eight "holds," and a solitary "strong sell." Meanwhile, short interest has notably surged over the past two reporting periods; the stock's short-interest ratio of 9.3 could open the door for short-covering activity, which could provide a short-term lift for the shares.

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