Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Jan 26, 2017 at 2:55 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stock Market News
  • By the Numbers
The weekly American Association of Individual Investors (AAII) survey just logged its 108th week in which the percentage of bullish respondents -- those with an optimistic six-month outlook for the stock market -- is below 50%. This streak began on Jan. 8, 2015, and is just two weeks shy of the record 110-week streak of AAII bulls being below 50% that lasted from Jan. 22, 1993, through Feb. 23, 1995, according to Schaeffer's Quantitative Analyst Chris Prybal. In fact, this record streak also occurred when the S&P 500 Index (SPX) was lingering near record highs.

And while the sample size is extremely small, Prybal notes that when the previous streak ended, the S&P 500 struggled in the ensuing two-week period -- possibly as buying power was depleted -- before resuming its longer-term uptrend across all subsequent time frames going out 12 months. What's more, the consecutive and consistent weekly decline out of this AAII group is interesting. Specifically, the percentage of bulls declined 28% in the past two weeks and 31% in the past month. This represents the biggest declines in bullish sentiment since May 2016!

AAII bulls_bears_spx

This week, the AAII bulls fell 5.4 percentage points to 31.6% -- well below the historical average of 38.4%. As a point of comparison, those respondents that identify as neutral increased 4.6 percentage points to 34.9%, above the historical average of 31.3%. Meanwhile, the percentage of bearish respondents rose to 33.5% from 32.7% in the week prior, higher than the 30.3% historical average.

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Published on Jan 26, 2017 at 3:47 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stock Market News
  • By the Numbers
  • Expectational Analysis

Schaeffer's Senior Quantitative Analyst Rocky White just released a list of the best indicators to use when trying to identify "buy" signals, highlighting the reliability of Bollinger Bands and 50-day simple moving average (SMA) crossovers. While these signals can be effective tools in determining a stock's future price action, it's important to base trading decisions on a variety of tools and indicators to create a fuller picture. One prime example offered by Schaeffer's Quantitative Analyst Chris Prybal is railroad stock Kansas City Southern (NYSE:KSU), which highlights why it is so important to not use one single indicator as a trade catalyst.

Looking at the charts, KSU recently crossed over its 50-day SMA, after bouncing from the round $80 level earlier this month. However, going back to 2000, the stock has averaged a five-day loss of 0.2% -- unlike these two stocks -- in the 94 other times this signal has occurred. And though the shares appear to be finding support near $83, home to a 38.2% Fibonacci retracement of their 2009 lows and 2014 highs, they have recently been charting a path of lower highs.

In fact, KSU is down 13.3% from its August highs north of $100 -- and has shed 1.8% today to trade at $87.29, after a canceled meeting between U.S. President Donald Trump and Mexican President Enrique Peña Nieto fuels worries about relations between the two countries. Specifically, KSU imports and exports goods from Mexico along its railways, and could be negatively impacted by deteriorating trade ties.

170126KSU 2

The stock could also face increased headwinds, should the bullish tide begin to shift in the options pits. The stock's 50-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows 2.22 calls bought to open for every put over the last 10 weeks of trading, a reading that sits just 6 percentage points from an annual peak.

What's more, KSU's Schaeffer's put/call open interest ratio (SOIR) of 0.86 sits in the 36th percentile of its annual range, suggesting a near-term traders are more call-heavy than usual toward the stock. In fact, KSU's call open interest is in the 94th percentile of its annual range, with nearly 36,000 contracts outstanding. An unwinding of the hedges related to these bullish bets could amplify the political and technical trouble staring down Kansas City Southern (NYSE:KSU).

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Published on Jan 26, 2017 at 9:25 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

Another earnings-heavy morning has the Dow on track to run at higher highs after breaking through the 20,000 level on Wednesday. Among specific equities in the spotlight are blue-chip drug stocks Johnson & Johnson (NYSE:JNJ) and Pfizer Inc. (NYSE:PFE), as well as online auction site eBay Inc (NASDAQ:EBAY). Here's a quick look at what's driving JNJ, PFE, and EBAY.

Johnson & Johnson Makes a Deal for Actelion

JNJ announced it will buy Actelion for $30 billion in cash. The deal comes after two months of speculation during which Johnson & Johnson at one point walked away from merger discussions with the Swiss biotech firm. As part of the takeover, JNJ will also spin off Actelion's research and development segment. JNJ stock hit a record high above $125 last July, and has since pulled back to support at the 320-day moving average. The shares are off 0.4% ahead of the open, but at last night's close of $112.80, have added 11.5% year-over-year. JNJ could stand to benefit from a round of upbeat attention from the brokerage bunch. At present, more than half of the firms providing coverage maintain a rating of "hold" or worse.

Vaccine Data Lifts Pfizer

PFE is up 0.4% in pre-market trading after the company reported positive results in a phase 2 trial of its C. difficile vaccine. The Dow component has seen some choppy trading since Election Day, but the shares appear to have found a foothold at the $31 level, which roughly corresponds with the year-over-year breakeven level. The shares finished Wednesday just above this mark, at $31.29. Pfizer Inc. is due to report earnings next week, and options traders seem to be expecting downbeat results. The stock holds a 10-day put/call volume ratio of 0.76 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- in the bearishly skewed 79th annual percentile.

Analysts Lift Outlooks for eBay on Upbeat Holiday Sales

After meeting expectations for quarterly earnings and revenue, upbeat comments about holiday sales and its revamped platform earned EBAY a round of bullish analyst attention. Specifically, no fewer than 13 brokerage firms raised their price targets on the stock, including Benchmark, which set the highest bar, at $39 -- well into never-before-seen territory. The news has eBay Inc set to add 6.8% at the open. The security has been rallying since bouncing from its 200-day moving average in early December and, at $30.23, has added more than 40% from last February's lows. This may not be the earnings result options traders were hoping for, judging by EBAY's 10-day put/call volume ratio of 0.83 at the ISE, CBOE, and PHLX -- higher than 84% of the past year's readings. An unwinding of these bearish bets could add fuel to the stock's fire, perhaps helping the shares make a run at record highs. 

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Published on Jan 26, 2017 at 9:41 AM
Updated on Mar 19, 2021 at 7:15 AM
  • VIX and Volatility
Stocks have resumed their record-setting run this week, with the release of several White House policy announcements seemingly breathing new life into the Trump rally. What's more, a round of well-received blue-chip earnings helped send the Dow soaring past the psychologically significant 20,000 mark. As such, the CBOE Volatility Index (VIX) -- or the market's "fear gauge" -- is hovering at its lowest levels since July 2014. Nevertheless, while put volume on VIX futures ran at an accelerated clip on Wednesday, 1.6 times the average intraday rate, the overriding trend in recent weeks has been toward long calls.

Per data from Schaeffer's Quantitative Analyst Chris Prybal, the VIX 20-day buy-to-open call/put volume ratio is moving higher -- with the ratio at 4.74, compared to its week-ago reading at 4.58. Likewise, the VIX 10-day buy-to-open call/put volume ratio has risen to 4.22 from 4.17 in the past week.

vix 20day bto call_put ratio

vix 10day bto call_put ratio

Drilling down, it's been deep out-of-the-money strikes in the February series -- which expires on Wednesday, Feb. 15, in the wake of the upcoming Fed meeting -- that have seen the biggest increases in open interest over the 10-session time frame. Specifically, the February 17 and 22 calls have seen the largest rises in open interest in the last two weeks, with a combined 495,085 positions added. These two strikes are now home to the second and third largest VIX open interest positions -- with the February 21 call in the top spot, with 394,488 contracts currently outstanding. Combine this accelerated call buying with an extreme short position on volatility futures by large speculators, and it seems many may be bracing for -- or hedging against -- a large volatility pop.

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Published on Jan 26, 2017 at 10:00 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Upgrades

Analysts are weighing in on data storage firm Western Digital Corp (NASDAQ:WDC), cloud stock ServiceNow Inc (NYSE:NOW), and aerospace company Boeing Co (NYSE:BA). Here's a quick look at today's bullish brokerage notes on WDC, NOW, and BA.

Analysts Hike Price Targets For Western Digital

WDC is 1.5% higher at $81.23, fresh off a new annual high of $81.67, after the data storage company delivered an earnings win. The stock has since received no fewer than 14 price-target hikes, including a lift to $122 from $95 at Craig-Hallum -- never-before-seen territory. WDC has been climbing steadily from its May 2016 low near $35, up 86% year-over-year. Now appears to be a prime time to buy options on Western Digital Corp, too. Its Schaeffer's Volatility Index (SVI) of 40% sits lower than 83% of all other readings from the past year, indicating near-term options are attractively priced, from a historical perspective.

ServiceNow Price Targets Raised After Earnings

NOW is up 4.9% at $90.62 -- and earlier hit a new all-time high of $92.98 -- after the cloud company delivered better-than-expected earnings. NOW has received no fewer than 12 price-target hikes, including one to $110 from $100 at Cowen and Company. ServiceNow Inc shares recently took a sharp bounce off their 200-day moving average, and the stock has roughly doubled since its February lows. Short interest rose 5.3% in the latest reporting period, and now accounts for 4.5% of NOW's float. It would take almost eight sessions to cover these bearish bets, at NOW's average trading volume, meaning an exodus of short sellers could fuel the shares higher.

Boeing's Post-Earnings Boom Attracts Analyst Attention

BA is up 0.7% at $168.57 -- and tagged a record peak of $169.25 not long ago -- adding to yesterday's 4.2% post-earnings pop. BA has since attracted no fewer than seven price-target hikes, including one to $200 from $185 at Jefferies. BA is up 45% year-over-year, and recently bounced off its rising 30-day moving average. Though Boeing Co's short interest dropped 13% in the latest reporting period, it would still take shorts more than a week to cover the remaining bearish bets, at BA's average pace of trading. If short sellers continue to exit their positions, the resulting short squeeze could help BA fly even higher.

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Published on Jan 26, 2017 at 10:24 AM
Updated on Mar 19, 2021 at 7:15 AM
  • The Week Ahead

The upcoming week is packed with crucial economic data and earnings reports. Of particular interest is the Federal Open Market Committee (FOMC) policy meeting on Tuesday and Wednesday, as well as the all-important jobs report on Friday. A handful of Dow components will report earnings, too -- highlighted by Apple Inc. (NASDAQ:AAPL) -- while "FANG" stocks Amazon.com, Inc. (NASDAQ:AMZN) and Facebook Inc (NASDAQ:FB) will also tell all.

Below is a brief list of some key market events scheduled for the upcoming week. All earnings dates listed below are tentative and subject to change. Please check with each company's respective website for official reporting dates.

The week starts on Monday, Jan. 30 with personal income and spending data, and the pending home sales index. Stepping up to the earnings plate is Booz Allen Hamilton (BAH).

The highly anticipated FOMC policy meeting kicks off on Tuesday, Jan. 31. Additionally, the docket features the employment cost index, the S&P CoreLogic Case-Shiller home price index, the Chicago purchasing managers index (PMI), and the Conference Board's consumer confidence survey. On the earnings front are AAPL, Exxon Mobil (XOM), Pfizer (PFE), Advanced Micro Devices (AMD), Aetna (AET), Aflac (AFL), Coach (COH), Electronic Arts (EA), Eli Lilly (LLY), Harley-Davidson (HOG), Illumina (ILMN), MasterCard (MA), Sprint (S), Thermo Fisher Scientific (TMO), Under Armour (UAA), United Parcel Service (UPS), United States Steel (X), Valero Energy (VLO), and Xerox (XRX).

Due out on Wednesday, Feb. 1 are auto sales, the ADP employment report, the Markit PMI manufacturing index, the Institute for Supply Management (ISM) manufacturing index, construction spending, and regularly scheduled crude inventories data. Plus, of course, the Fed's policy announcement will hit the Street at 2 p.m. ET. Reporting earnings will be Allstate (ALL), Altria (MO), Anthem (ANTM), Cirrus Logic (CRUS), Edwards Lifesciences (EW), FB, Legg Mason (LM), and Pitney Bowes (PBI).

On Thursday, Feb. 2, weekly jobless claims, as well as productivity and labor costs, will be released. Taking their turns on the earnings stage are Merck (MRK), Visa (V), athenahealth (ATHN), AMZN, AstraZeneca (AZN), Boston Scientific (BSX), CIGNA (CI), Chipotle (CMG), ConocoPhillips (COP), Cypress Semiconductor (CY), Deckers Outdoor (DECK), Delphi Automotive (DLPH), Estee Lauder (EL), FireEye (FEYE), GoPro (GPRO), International Paper (IP), Parker-Hannifin (PH), Philip Morris (PM), Ralph Lauren (RL), Sirius XM (SIRI), Sony (SNE), and Tableau Software (DATA).

Reports due out on Friday, Feb. 3 include the nonfarm payrolls report, factory orders, and the ISM services index. Separately, Chicago Fed President Charles Evans is due to speak. Closing out the earnings lineup will be Clorox (CLX), Hershey (HSY), Honda (HMC), LyondellBasell (LYB), Phillips 66 (PSX), and Weyerhaeuser (WY).

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Published on Jan 26, 2017 at 11:04 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Downgrades

Analysts are weighing in on Fisher-Price parent Mattel, Inc. (NASDAQ:MAT), restaurant stock Brinker International, Inc. (NYSE:EAT), and biotech Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Here's a quick look at today's bearish brokerage notes on MAT, EAT, and VRTX.

Mattel Cut to "Neutral" at MKM Partners

MAT is down 14.3% at $27.05, after the company reported an earnings miss, with the results pressured by a global decline in Fisher-Price and Barbie sales. MKM Partners downgraded MAT to "neutral" from "buy," and joined a number of other brokerage firms in cutting its price target. Today's drop puts MAT down nearly 21% since its mid-August peak near $34.25. In the option pits, near-term traders are more call-skewed now than they've been at any other point during the past year, with MAT's Schaeffer's put/call open interest ratio (SOIR) of 0.24 sitting at an annual low.

Post-Earnings Analyst Backlash for Brinker

After plunging 6.2% yesterday following an earnings miss, EAT is up 1.3% at $44.83 -- which isn't too surprising considering the stock's 14-day Relative Strength Index (RSI) settled at 23, well into oversold territory. Today's bounce comes despite a round of bearish brokerage attention, with EAT receiving no fewer than nine price-target cuts, including one to $43 from $56 at Canaccord Genuity, which said "top-line challenges are likely to persist." Brinker International, Inc.'s withstanding trend has been to the downside, though, with the stock down nearly 20% since touching an annual high of $55.84 in November.

Vertex Attracts Mixed Analyst Attention Post-Earnings

VRTX is down 0.8% at $84.49, after Jefferies and Goldman Sachs cut their respective price targets to $100 and $78, following the company's earnings report and full-year guidance. Leerink, meanwhile, hiked its price target to $115. VRTX shares are staring up at their 200-day moving average, and have a year-over-year loss of 8.5%. Option traders have been buying to open calls over puts at a rapid-fire rate in recent months. VRTX's 50-day call/put volume ratio of 3.84 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is ranked just 2 percentage points from an annual peak.

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Published on Jan 26, 2017 at 11:22 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Expectational Analysis
  • By the Numbers
Yesterday, Schaeffer's Senior Quantitative Analyst Rocky White called our attention to 20 stocks to buy, based on predictive technical signals. Having already dug deeper into the Bollinger Band buy signals, we'll shift our attention to stocks that have just crossed over their 50-day moving averages. On the list below, two names to watch are Church & Dwight Co., Inc. (NYSE:CHD) and Coty Inc (NYSE:COTY):

50 day moving average crossover stocks jan 26

Schaeffer's Quantitative Analyst Chris Prybal describes CHD as "strong as an ox," especially over the long term. While he adds the short-term charts "aren't the best looking," shares of the Arm & Hammer parent have still advanced almost 9% since their early December low to trade at $46.25.

Plus, if CHD's crossover of its 50-day trendline results in more gains, there's plenty of potential for tailwinds from a skeptical Wall Street. For example, 13 of 17 analysts rate the stock a "hold" or worse, leaving the door open for upgrades. Not to mention, the shares sport a short-interest ratio (SIR) of 5.80, meaning there's a strong possibility of a short-squeeze situation on the near-term horizon.

chd stock daily jan 26

Turning to COTY, the company recently bought Procter & Gamble Co's (NYSE:PG) beauty business, making it the third largest cosmetics firm in the world. Despite this, Prybal notes that COTY shares have nonetheless pulled back near their $17.50 initial public offering (IPO) price, last seen at $19.79. Thus, he thinks of the stock as a potential "rotation play" or "buy the losers"-type trade.

If the shares' crossover of the 50-day trendline is a sign of good things to come, a capitulation among the bearish options crowd could fuel even more momentum. After all, COTY's Schaeffer's put/call open interest ratio (SOIR) stands at a top-heavy 1.84 -- in the put-skewed 85th annual percentile. Plus, the stock's SIR sits at 7.90, while 60% of analysts maintain tepid "hold" recommendations -- suggesting short covering and/or upgrades could bolster the shares on the first signs of life.

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Published on Jan 26, 2017 at 11:30 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move
  • Intraday Option Activity

The Dow Jones Industrial Average (DJIA) finally hit the 20,000 mark, and the SPDR S&P 500 ETF Trust (NYSE:SPY) is also notching new record highs. With market momentum building, SPY could be preparing to take its upswing even higher. It looks like one trader in particular is hoping for another move to the upside before February options expiration.

SPY is little changed this morning at $229.65, after touching a new record high of $229.71 earlier today. SPY has tacked on more than 26% since its February 2016 lows, boosted by the recent support of its 30-day moving average, and may finally be breaking out of its post-Fed sideways pattern. Yesterday, approximately 2 million SPY calls crossed the tape -- more than twice the average daily volume. By the close of trading, SPY call volume registered in the 97th percentile of its annual range.

Drilling down, one trader initiated a call spread on front-month SPY options. A block of 250,000 February 232 calls was sold to open at 75 cents each  while a block of 125,000 February 230 calls was bought for $1.52 per contract. The net debit on this call spread was just 2 cents per contract, according to Trade-Alert, with the SPY February 232 call strike now emerging as the biggest open interest position on the S&P tracker.

By opening this call spread, the trader is betting on the SPDR S&P 500 ETF Trust (NYSE:SPY) to rise above $230 by the time these options expire on Feb. 17 -- or it could be a low-cost hedge to a short equity position, albeit one that leaves the trader exposed to steep losses on a SPY move above $232.

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Published on Jan 25, 2017 at 1:06 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Earnings Preview

As Starbucks Corporation (NASDAQ:SBUX) prepares to report earnings tomorrow evening, options traders have been favoring puts over calls by an annual-high margin. Nevertheless, with the stock trading above multiple layers of technical support, bullish analyst ratings, and a history of post-earnings daily gains, these bearish speculators are swimming against the tide.

So far today, SBUX is up 0.4% at $58.67. The shares recently took a bounce off their 50-day moving average, and are extending their lead above their 200-day moving average, which previously acted as resistance in mid-2016. In addition, SBUX has broken out above a trendline connecting a series of lower highs from late 2015 through late 2016, and this level now looks to be acting as support for the shares.

170125SBUX 2

Despite this multi-layered technical support, option players still seem skeptical. SBUX's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is docked at a top-heavy 2.27. This reading sits at an annual peak, indicating option players have bought to open puts over calls at the fastest pace in a year. That said, given the stock's recent recovery from its fourth-quarter lows, it's possible that some of this put-buying activity represents pre-event hedging on the part of Starbucks shareholders.

Analysts, meanwhile, have a rosy view of SBUX. Of the 21 brokerage firms weighing in, 16 rate the shares a "buy" or better, with not a single "sell" to be found. In addition, the average 12-month price target of $64.73 represents a healthy 10% premium to the shares' current perch.

Over the last eight quarters, Starbucks Corporation (NASDAQ:SBUX) has averaged a single session post-earnings swing of 2.6%, regardless of direction. This time around, the options market is pricing in a significantly larger post-earnings swing of 5.8%. If SBUX lives up to these volatility expectations, an upside move of this size would bring the shares to $62.07 -- a new annual high -- while a drop of this magnitude would leave SBUX at $55.27, below the various layers of technical support mentioned above.

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Published on Jan 25, 2017 at 1:28 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Expectational Analysis
  • By the Numbers
Earlier, Schaeffer's Senior Quantitative Analyst Rocky White identified 20 stocks to buy based on a pair of historically predictive indicators. One such indicator was Bollinger Bands, as stocks that fall below the lower band tend to outperform. We asked Senior Trading Analyst Bryan Sapp which names on the list looked most attractive from a sentiment and price perspective, and he identified Capital One Financial Corp. (NYSE:COF), Fifth Third Bancorp (NASDAQ:FITB), Hologic, Inc. (NASDAQ:HOLX), and UnitedHealth Group Inc (NYSE:UNH).

bollinger band top stocks jan 25

COF looks "really good," according to Sapp, due to its long-term strength. Since the U.S. presidential election, the stock has added almost 21% to trade at $88, despite dropping 0.8% today on an earnings miss. Making the shares all the more attractive is what appears to be a stern foothold at the ascending 50-day moving average, as well as potential for skepticism to unwind on the Street.

For instance, 11 of 19 analysts rate COF a "hold" or worse, leaving the door open for upgrades. In fact, KBW, BMO, and Oppenheimer all just raised their price targets on the financial stock. A capitulation among option bears could add fuel to the fire, too. COF sports a 10-day put/call volume ratio of 2.11 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Though, of course, a portion of these put buyers could be shareholders hedging (which applies to the securities below, too).

cof daily bollinger bands jan 25

FITB has been a major outperformer on the charts, as well, aided by its 50-day trendline. At $26.80, the shares have soared 76% year-over-year. Yet, 92% of analysts rate the stock a "hold" or "strong sell," and the latest attention has been mostly negative, even after yesterday's earnings beat. Specifically, Oppenheimer lowered its assessment to "perform," while BMO and Wedbush trimmed their price targets -- as opposed to Baird, which lifted its target price. All things considered, there's room for upgrades if the equity can sustain its long-term course.

Not to mention, FITB's 10-day ISE/CBOE/PHLX put/call volume ratio stands at a top-heavy 6.84 -- in the 89th annual percentile -- while its Schaeffer's put/call open interest ratio (SOIR) of 3.07 is just 2 percentage points from a 12-month peak. If these put players hit the exits, it could create tailwinds for the bank shares. Those looking to place short-term bets on FITB are in luck, too, as its Schaeffer's Volatility Index (SVI) of 28% ranks in the bottom quartile of its annual range.

HOLX is another potentially attractive pick, benefiting from double-barreled support at its 50-day moving average and the $39 level -- a former layer of resistance. Since its early November low at $35.15, the healthcare stock has exploded over 13% to hover at $39.82 -- despite bucking its previously bullish trend post-inauguration. This could send option bears to the hills, as HOLX's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.32 ranks in the 83rd annual percentile, while its SOIR sits just 1 percentage point from a 52-week peak, at 1.63.

It's a similar story with respect to insurance issue UNH. At $161.70, the stock has trekked 42% higher in the past 12 months, and recently found a foothold at its 50-day trendline. Yet, options speculators have rarely been so put-skewed toward the shares. UNH sports a top-heavy SOIR of 1.58, registering just 5 percentage points from a 12-month high. An unwinding of bearish put traders could add fuel to the stock's proverbial fire.

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Published on Jan 25, 2017 at 2:32 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

U.S. stocks are taking off, as the "Trump rally" kicks into higher gear. Among specific equities in focus today are aerospace stock Boeing Co (NYSE:BA), restaurant chain Bob Evans Farms Inc (NASDAQ:BOBE), and healthcare name Meridian Bioscience, Inc. (NASDAQ:VIVO). Here's a quick look at what's moving BA, BOBE, and VIVO.

Boeing Taps Highs Post-Earnings

BA is fresh off a record high of $168.65, and was last seen up 4.9% at $168.47. Boosting the shares are better-than-forecast fourth-quarter earnings, and expectations the company will deliver more planes in 2017. The stock could get an additional jolt higher if bearish holdouts within the brokerage crowd start to change their tune. Despite BA's long-term outperformance, nearly half of the analysts tracking the shares have doled out a "hold" or worse rating.

Bob Evans Selling Restaurants

BOBE jumped to an all-time peak of $60.95 earlier, and remains 20.6% higher at $57.85, making it one of the top percentage gainers on the Nasdaq. The stock is soaring after the company agreed to sell its restaurants to Golden Gate Capital for $565 million*. Suffice it to say, short sellers could be sweating bullets. Despite declining 19% in the most recent reporting period, short interest on BOBE would still take over a week to buy back, at the stock's average trading volume.

Meridian Bioscience Slammed by Earnings, Outlook

VIVO has cratered today -- losing nearly one-fifth of its value at $13.20, and landing on the short-sale restricted (SSR) list -- after a lackluster trip to the earnings confessional, including a downwardly revised full-year outlook. Earlier, in fact, the stock touched an 11-year low of $10.75. Despite being SSR this afternoon, VIVO has been the target of shorts for some time. Nearly 9% of the stock's float is sold short, which would take over 12 sessions to cover, based on its average trading rate.

*Editor's note: The original text of this article misstated the nature of the BOBE transaction. We regret the error.

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