Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Jul 2, 2015 at 9:25 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Downgrades

Analysts are weighing in today on money transfer issue Xoom Corp (NASDAQ:XOOM), as well as commodities concerns Alcoa Inc (NYSE:AA) and Cliffs Natural Resources Inc (NYSE:CLF). Here's a quick roundup of today's bearish brokerage notes on XOOM, AA, and CLF.

  • XOOM is surging ahead of the bell, after being acquired by PayPal -- itself owned by eBay Inc (NASDAQ:EBAY) -- for $890 million in cash, or $25 per share. The purchase price represents a premium of nearly 21% to last night's close at $20.70, and has Xoom Corp up by an equivalent margin. On the Street, Baird downgraded XOOM to "neutral" from "outperform," but -- along with Stifel -- upped its price target to $25. Meanwhile, short sellers may be feeling the heat this morning. A lofty 15.8% of the equity's float is sold short, which represents more than 11 sessions' worth of pent-up buying power, at typical volumes.

  • Deutsche Bank weighed in on a number of metal producers, including AA -- lowering its price target by $3 to $16. The downward revision is hardly surprising (or unprecedented), considering the stock has lost 30% year-to-date to trade at $11.07, and just yesterday touched an annual low of $10.94. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 6.70 Alcoa Inc calls for every put over the past 10 sessions -- a ratio that ranks in the bullishly skewed 87th percentile of its 52-week range. Looking ahead, AA will unofficially kick off second-quarter earnings season next Wednesday night.

  • CLF also got hit with a price-target cut from Deutsche Bank, which trimmed its forecast to $5 from $5.50. Yesterday, the stock settled at $4.21, down more than 73% year-over-year, and close to a decade-plus low of $4.12, touched in mid-March. This morning, however, the shares are up 1.2% in electronic trading. Short sellers have been flocking to Cliffs Natural Resources Inc amid its long-term downtrend. Nearly half of the equity's float is sold short, representing nine days of trading, at typical volumes.

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Published on Jul 2, 2015 at 9:26 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

Stocks are headed higher this morning, as traders digest the latest jobs report. Among specific equities in focus are electric car concern Tesla Motors Inc (NASDAQ:TSLA), healthcare company Centene Corp (NYSE:CNC), and blue chip General Electric Company (NYSE:GE).

  • TSLA is up 4% in electronic trading, after the company said sales of its Model S exceeded expectations for a second straight quarter. It's already been a big week for TSLA, which received some upbeat analyst attention on Tuesday. What's more, based on last night's close at $269.15, the stock is now within striking distance of its Sept. 4 record peak of $291.42. Tesla Motors Inc could get an additional boost, should short sellers continue to capitulate to this upward momentum. Although short interest dropped 2.2% in the latest reporting period, these bearish bets still account for one-quarter of TSLA's available float -- representing 9.4 times the average daily trading volume.

  • Rounding out a busy week of M&A headlines in the healthcare sector, CNC is 3.9% higher this morning -- and on pace to notch a fresh all-time peak -- following reports the firm will purchase insurance issue Health Net, Inc. (NYSE:HNT) in a cash-and-stock deal valued at roughly $6.3 billion. (HNT, meanwhile, is poised to pop 17%, and into record-high territory.) CNC has already had a standout year on the charts, boasting a nearly 56% lead. An extended rise could prompt additional analysts to re-evaluate their ratings. More than half of those covering Centene Corp maintain a lukewarm "hold" recommendation. Plus, the average 12-month price target of $82.20 is just a chip-shot away from Wednesday's settlement at $80.90.

  • GE has been making waves all week. Today, the company is in the spotlight, after the Justice Department filed a lawsuit yesterday in an attempt to block Sweden-based Electrolux from purchasing GE's appliance division. Additionally, General Electric Company (NYSE:GE) earlier held a closed-door meeting with European Union antitrust regulators over its $13.7 billion bid for Alstom's energy unit. Nevertheless, the stock is up modestly in electronic trading, after closing last night at $26.66. Longer term, the shares have tacked on 8.5% since hitting their most recent low of $24.57 in early April, thanks to a lift from their 80-day moving average.

    Option traders, however, have taken the glass-half-empty approach in recent months. Specifically, GE's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.46 ranks in the 70th annual percentile. A capitulation from some of the weaker bearish hands could translate into tailwinds for GE.
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Published on Jul 2, 2015 at 10:55 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Intraday Option Activity

It's been a downright ugly year for coal concern Peabody Energy Corporation (NYSE:BTU). All-in-all, the shares are down over 89% in the past year, and widening the technical scope shows that the stock has been in a consistent downtrend since April 2011. Judging by recent option activity, it seems as though some are anticipating even further moves to the downside.

Overall, BTU put volume ran at five times expected volumes yesterday. Looking at data from Trade-Alert, it looks like one trader rolled down her bearish bet. Specifically, it appears she sold to close 20,440 January 2016 2-strike puts for 75 cents apiece, and then bought to open 32,704 January 2016 1.50-strike puts for 44 cents apiece. Simply stated, this trader is expecting BTU to slide below $1.50 by January 2016 options expiration.

Looking back, it's actually been call buying that's been popular among the equity's option traders. During the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BTU has posted a call/put volume ratio of 3.59 -- higher than four-fifths of readings from the past year.

But pump the brakes. There's a good chance some of this activity is the work of short sellers hedging their bearish bets against any upside. In fact, close to one-third of the stock's float is controlled by short sellers, accounting for nearly a week's worth of trading, at normal daily volumes.

Even with Peabody Energy Corporation's (NYSE:BTU) miserable performance on the charts, six brokerage firms have maintained "buy" or better opinions. Even more startlingly, the shares' average 12-month price target stands at $6.85 --  almost four times BTU's current price of $1.77. It wouldn't be the least bit surprising to see a round of bearish notes hurt the stock in the near future. And wouldn't you know it, Deutsche Bank just this morning lowered BTU's rating to "sell" from "hold,"  and its price target to $1.30 from $6 -- as the firm also did to a number of commodities stocks.

Published on Jul 2, 2015 at 11:27 AM
Updated on Mar 19, 2021 at 7:15 AM
  • By the Numbers

We're just a couple of days into the new quarter, and while the early broad-market returns are good overall, it got me thinking -- are there any stocks poised to rally going forward? Obviously, three months from now, there will be winners and losers, but trying to put one's finger on them, in advance, is the tricky part. Therefore, I decided to take a look at some names that have historically outperformed during the third quarter to see if there might be a buying opportunity or two. Three names I came across in my research are BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), Regeneron Pharmaceuticals Inc (NASDAQ:REGN), and Sigma Designs Inc (NASDAQ:SIGM).

The table below comes courtesy of Schaeffer's Senior Quantitative Analyst Rocky White, and lists 34 stocks that have done exceptionally well during the past decade, specifically in the third quarter. All of the names were positive at least 80% of the time, in fact. Below the chart, you'll find a more in-depth breakdown of BMRN, REGN, and SIGM.

3Qstocks1

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

BMRN has been positive in eight of the past 10 third quarters, averaging a three-month gain of 14.4%. Moreover, the stock is a long-term outperformer, soaring 50% year-to-date to trade at $135.74, and more than doubling year-over-year. Late last month, the drugmaker topped out at a record $141.51.

3Qstocks2

In spite of this impressive run, options traders have been quite put-skewed. BMRN's Schaeffer's put/call open interest ratio (SOIR) of 0.63 ranks in the 86th annual percentile. What's more, the stock's short interest ratio of 5.3 indicates there's plenty of sideline cash available. Should BMRN have another strong third quarter, a capitulation among these skeptics could further energize the shares.

Regeneron Pharmaceuticals Inc (NASDAQ:REGN)

Sector peer REGN has also been impressive during the third quarter, advancing nine times in the previous 10 years, and sporting a typical three-month jump of 22%. More recently, the shares could be seen rallying 24% in 2015 to trade at $508.89, and consolidating atop the half-millennium $500 level -- which roughly corresponds with the equity's rising 40-day moving average.

3Qstocks3

However, skeptics have been busy at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), buying to open 1.22 puts for every call over the last 10 days. This ratio registers in the 84th annual percentile. Should these doubters throw in the towel, it could result in tailwinds for REGN.

Similarly, 6.1% of the stock's float is sold short. At REGN's average daily volume, it would take one week to buy back all of these shorted shares. Simply stated, the security could be on the brink of a short-covering rally.

Sigma Designs Inc (NASDAQ:SIGM)

Finally, SIGM sports an average third-quarter gain of 20.7% over the past decade, and has been positive in eight of the previous 10 years. Moreover, shares of the semiconductor firm have soared 143% over the last 12 months to trade at $11.60, boosted in early June by a standout first-quarter earnings report and subsequent round of bullish brokerage notes.

3Qstocks4

However, not everyone's buying the hype. SIGM's 50-day ISE/CBOE/PHLX put/call volume ratio ranks higher than roughly three-quarters of all comparable readings from the past year. A capitulation among these skeptics could further boost the stock.

Published on Jul 1, 2015 at 1:56 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Intraday Option Activity
SolarCity Corp (NASDAQ:SCTY) is bucking the broad-market trend higher, down almost 2% amid a sector-wide slump. Nevertheless, options traders appear to be keeping the faith, as calls are crossing at five times the usual intraday rate, and almost triple the pace of puts.

Diving right in, SCTY's most active strike by a mile is the August 57.50 call. By buying to open this out-of-the-money option, speculators anticipate the shares will topple $57.50 by the close on Friday, Aug. 21, when back-month contracts expire. The stock was perched above this level as recently as last week, but the market's end-of-month blues weighed on SCTY considerably. In fact, since its June 23 close at $58.10, the equity has surrendered almost 10% to hover around $52.52 -- and is now below its year-to-date breakeven mark.

Notably, the aforementioned calls encompass SCTY's next turn in the earnings confessional, tentatively scheduled during the first full week of August. The market is currently pricing in an 11.4% post-earnings moved, based on straddle data; however, during the last eight quarters, the shares have averaged a slimmer 7.2% move in the session adjacent to earnings.

Shifting gears, sentiment on Wall Street is divided. On the one hand, two-thirds of analysts consider SolarCity Corp (NASDAQ:SCTY) a "buy" or better, with not a single "sell" to be found. On the other, a mind-numbing 45.4% of the stock's float is sold short, equivalent to more than two weeks of trading, at average daily volumes.
Published on Jul 1, 2015 at 1:59 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Update

Analysts are weighing in today on semiconductor producer Advanced Micro Devices, Inc. (NASDAQ:AMD), scrap metal maven Schnitzer Steel Industries, Inc. (NASDAQ:SCHN), and energy giant Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR). Here's a quick look at today's brokerage notes on AMD, SCHN, and PBR.

  • It hasn't been a great year for AMD. Coming into today, the shares were off 10.1% in 2015. This afternoon, however, they've moved off their session lows to trade 1.9% higher at $2.44, despite an earlier price-target cut to $3 from $3.50 at FBR. The Street, meanwhile, has taken a bearish stance on the stock, as 78% of brokerage firms say it's a "hold" or worse. Also, traders haven't been afraid to short Advanced Micro Devices, Inc. Short interest represents 18.5% of the security's float, and it would take bears close to three weeks to repurchase the shares, at AMD's normal daily volumes.

  • SCHN is booming today, gaining 14.4% to trade at $19.99, thanks to an upgrade to "buy" at BofA-Merrill Lynch. Even though the shares remain below breakeven on a year-to-date basis, they've been gaining traction lately, outpacing the S&P 500 Index (SPX) by 8 percentage points in the past three months. Option traders apparently aren't convinced. More than two puts have been bought to open for each call during the last 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

  • Conversely, PBR isn't so lucky today, with the shares dropping 3% to hit $8.77. The decline comes despite an upgrade to "hold" from "reduce" at HSBC, which also raised its price target to $9 from $6 -- and in the wake of yesterday's big energy initiative between Brazil and the U.S. The stock has been on the rise in recent months, tacking on 80% since its 11-year low $4.90 on March 13. Still, according to Petroleo Brasileiro Petrobras SA's Schaeffer's put/call open interest ratio (SOIR) of 1.32, short-term option traders have only been more put-skewed 3% of the time in the past 12 months. 
Published on Jul 1, 2015 at 2:40 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move
Crude is notably lower today, after the weekly inventories update showed supplies unexpectedly rose. This has oil-and-gas issue Chesapeake Energy Corporation (NYSE:CHK) plunging, with the equity off 5.6% at $10.55, after earlier hitting a new six-year low of $10.53. This only echoes the stock's withstanding technical trajectory, though, with shares of CHK shedding almost 64% of their value over the past 12 months -- and teetering dangerously close to single-digit territory for the first time since December 2008.

In spite of these long-term technical troubles, option traders have shown a growing appetite for long calls over puts in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CHK's 10-day call/put volume ratio has jumped to 2.28 from 1.39 over the past two weeks, and now sits in the 64th percentile of its annual range.

Drilling down on the front-month series -- which expires at the close on Friday, July 17 -- peak call open interest is currently found at the 13 strike, where almost 59,000 contracts reside. Since mid-April, specifically, 8,132 calls have been bought to open at this out-of-the-money (OOTM) strike at the ISE, CBOE, and PHLX, meaning traders are anticipating CHK to be sitting north of $13 at expiration.

Given the stock's steady decline, it's possible some of the activity here -- and at other OOTM strikes -- is a result of short sellers hedging their bearish bets against any unexpected upside. Short interest popped 17% in the latest reporting period, and now accounts for almost 25% of CHK's float, or 162.1 million shares -- the loftiest amount in at least 13 years.

Regardless, those currently purchasing Chesapeake Energy Corporation's (NYSE:CHK) near-term options are in luck. The stock's Schaeffer's Volatility Index (SVI) of 47% rests lower than 66% of all similar readings taken in the past year. Simply stated, premium on CHK's short-term options is pricing in relatively deflated volatility expectations.
Published on Jul 1, 2015 at 3:19 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stock Market News
Monthly auto sales were up about 5% year-over-year in June, industry-wide. Things were more mixed for Detroit rivals Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM). While sales of F cars and trucks rose 2%, GM's sales slipped 3%.

Despite this fundamental divergence, the stocks are both struggling on the charts. At last check, F was 0.3% lower at $14.98 -- bringing its year-to-date deficit to 3.4% -- and GM is down an even steeper 1.1% at $32.96 (and 5.6% in 2015).

Shifting gears, sentiment toward F has been negative among options traders. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.52 ranks in the 94th annual percentile. Echoing this, F's Schaeffer's put/call open interest ratio (SOIR) sits at 1.02, and rests just 10 percentage points from a 12-month high.

This negativity is, for the most part, shared among the brokerage crowd. In fact, 60% of covering analysts consider Ford Motor Company (NYSE:F) a "hold" or worse.

Surprisingly, Wall Street is more optimistic toward GM. For starters, eight of 13 analysts have doled out "buy" or better ratings toward the stock, with not a single "sell" opinion to be found. If that's not enough, GM's 50-day ISE/CBOE/PHLX call/put volume ratio of 2.97 sits in the bullishly skewed 83rd annual percentile.

From a contrarian point of view, this could spell trouble. Should sentiment shift among traders and/or analysts, General Motors (NYSE:GM) could drive into headwinds.
Published on Jul 1, 2015 at 3:21 PM
Updated on Mar 19, 2021 at 7:15 AM
  • Stocks On the Move

Airline stocks are spiraling this afternoon, after the Department of Justice (DoJ) said it has opened an antitrust investigation into a number of names in the sector. Although the DoJ is not specifying which carriers it is looking into, rumors are swirling the investigation involves a possible illegal pricing scheme. At last check, three airlines taking it to the chin are American Airlines Group Inc (NASDAQ:AAL), Delta Air Lines, Inc. (NYSE:DAL), and JetBlue Airways Corporation (NASDAQ:JBLU).

  • AAL initially ticked higher out of the gate, but ran headlong into its 20-day moving average. Since then, the shares have plunged 2.4% to $38.96, extending their year-to-date deficit to 27%. Option traders have been hopeful that American Airlines Group Inc will stage a rebound, and have been buying to open calls over puts at a near-annual-high clip in recent weeks. Specifically, the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 6.00 sits just 2 percentage points from a 52-week peak. AAL could be poised for some additional turbulence, should any of these bullish bettors -- or upbeat analysts -- start changing their tune.

  • DAL has been testing support atop its 320-day moving average in recent weeks, but due to today's 2.7% drop to $39.99, the stock has easily lost its footing atop this trendline. Longer term, the shares have surrendered roughly 19% in 2015, yet speculators have been initiating long calls over puts at a rapid-fire rate in recent weeks. In fact, the equity's 10-day ISE/CBOE/PHLX call/put volume ratio is docked at an annual high of 15.58. Meanwhile, the door is wide open for analysts to re-evaluate their ratings, which could translate into a fresh wave of selling pressure. All but one of the 13 brokerages covering the shares maintain a "buy" or better opinion, with not a single "sell" to be found. Plus, Delta Air Lines, Inc.'s consensus 12-month price target of $59.57 stands at a steep 49% premium to current trading levels.

  • JBLU has performed the best of its peers. Not only was the equity up almost 31% year-to-date heading into today's session, but it hit an 11-year high of $22.40 as recently as May. What's more, although the stock is down 3.1% this afternoon at $20.11, it found a foothold atop its rising 80-day moving average earlier. Against this longer-term uptrend, short sellers have been jumping ship on JetBlue Airways Corporation, and in the most recent reporting period, short interest declined 10.3%. Elsewhere, short-term traders are more put-skewed than usual, per the security's Schaeffer's put/call open interest ratio (SOIR) of 0.48, which ranks in the 67th percentile of its annual range.
Published on Jul 1, 2015 at 9:22 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Upgrades

Analysts are weighing in today on social network giant Facebook Inc (NASDAQ:FB), diagnostic expert Hologic, Inc. (NASDAQ:HOLX), and real estate investment trust Extra Space Storage, Inc. (NYSE:EXR). Here's a quick roundup of today's bullish brokerage notes on FB, HOLX, and EXR.

  • FB is up 1.3% ahead of the open, after Cantor raised its price target on the stock to $100 from $92, while maintaining its "buy" opinion. The security should be used to the bullish attention by now -- 25 out of 27 brokerage firms say it's a "buy" or better. Traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), meanwhile, have remained call-heavy. Over the past 10 days across these exchanges, more than 260,000 Facebook Inc calls have been bought to open, compared to roughly 106,000 puts. On the charts, FB has rallied over 26% year-over-year to trade at $85.76, touching an all-time high of $89.40 on June 25. In other news, the company last evening announced a new video advertising option for marketers

  • So far in 2015, HOLX is 42% higher at $38.06 -- touching a record peak of $38.55 on June 26 -- and that hot streak could be set to continue today, thanks to Cowen and Company. The brokerage firm upped its price target on the shares to $40 from $35. Other analysts aren't too sure of Hologic, Inc., with half of those covering HOLX saying it's a "hold" or worse. Many traders share this pessimism. Short interest jumped over 21% during the last two reporting periods, and now represents more than a week's worth of buying power, at the stock's average daily volume.

  • It has been a rough couple weeks for EXR. Specifically, the shares gave back close to 7% in June, and settled at $65.22 yesterday. Regardless, BofA-Merrill Lynch initiated coverage on the stock with a "buy" rating. The other nine brokerage firms tracking Extra Space Storage, Inc. are mixed, with five calling it a "buy" or better, and the other four saying the security is only a "hold." Elsewhere, speculative players aren't exactly split in their opinions of EXR. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.99 arrives in the 100th percentile of its annual range, as short-term options traders are showing a greater skew toward puts over calls now than at any other time over the past year

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Published on Jul 1, 2015 at 9:26 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Analyst Downgrades

Analysts are weighing in today on java giant Starbucks Corporation (NASDAQ:SBUX), coal concern Peabody Energy Corporation (NYSE:BTU), and watch maker Fossil Group Inc (NASDAQ:FOSL). Here's a quick roundup of today's bearish brokerage notes on SBUX, BTU, and FOSL.

  • SBUX was removed from Goldman Sachs' "America's Conviction" list, despite its nearly 31% year-to-date lead. Also, at $53.62, the shares are approaching their record high of $54.75 from last Friday, helped by several bounces off their 20-day moving average. Amid Starbucks Corporation's uptrend, short selling has picked up -- spiking over 23% during the latest reporting period. A quick exit by these skeptics could further energize the technical outperformer.

  • Yesterday's current-quarter profit warning (subscription required) from BTU sank the shares 12.8%. That trend will likely continue today, with the stock down another 2.5% ahead of the bell following a price-target cut to $9 from $10 at Stifel. All told, it's been a brutal year for Peabody Energy Corporation, down nearly 72% in 2015 at $2.19. Nevertheless, six of 15 analysts still consider the shares worthy of a "buy" or better rating, with another six sitting on "hold" opinions. Plus, BTU's average 12-month price target of $6.90 is more than three times the current perch. This could pave the way for future downgrades and/or additional price-target reductions, resulting in headwinds.

  • Last night, KeyBanc cut its price target on FOSL to $65 from $68. The bearish note is warranted, considering the stock has tumbled 40% since its annual peak of $115.20 in November to trade at $69.36, and is now flirting with its two-year low of $68.55, touched in late May. Amid this downtrend, bears have been licking their chops. Fossil Group Inc's 10-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 2.30 -- higher than nearly three-quarters of comparable readings from the past year. Also, over 24% of FOSL's float is sold short, equal to roughly 12 days of trading, given typical volumes.

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Published on Jul 1, 2015 at 9:29 AM
Updated on Mar 19, 2021 at 7:15 AM
  • Buzz Stocks

Futures are hinting at a sharply higher open, as optimism builds over a potential bailout agreement in Greece. Among specific equities in focus are insurance issue ACE Limited (NYSE:ACE), athletic apparel giant Nike Inc (NYSE:NKE), and freight equipment maker Greenbrier Companies Inc (NYSE:GBX).

  • Following yesterday's big M&A news in the insurance sector, shares of ACE are up 8% in electronic trading after the company said it will will buy Chubb Corp (NYSE:CB) in a cash-and-stock deal worth $28.3 billion. (CB, meanwhile, is poised to pop 33% out of the gate.) Heading into today's session, ACE was staring at an 11.5% year-to-date deficit, yet sentiment around the Street has been tilted toward the bullish side. For starters, just 1.1% of ACE Limited's float is sold short. Plus, 69% of covering analysts maintain a "buy" or better rating, and the consensus 12-month price target of $119.33 stands at a 17.4% premium to last night's close at $101.68 -- and in territory yet to be charted.

  • It's been a standout run for NKE, which has rallied more than 38% year-over-year to trade at $108.02 -- and is fresh off an earnings-induced record high of $110.34. It appears co-founder Phil Knight wants to go out on top, and last night said he will step down from the role of chairman. Knight has tapped President and CEO Mark Parker as his successor. Despite Nike Inc's success both on and off the charts, option traders have been bracing for a pullback. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 0.80 rests in the 90th percentile of its annual range. In other words, puts have been bought to open over calls at a near-annual-high clip.

  • Unlike its last turn in the earnings confessional, GBX's fiscal third-quarter profit fell short of analysts' estimate -- the first time this has happened in five quarters. The results have the shares about 1.4% lower ahead of the bell, and on pace to add to their nearly 13% year-to-date loss. Should Greenbrier Companies Inc continue to struggle, a round of downgrades and/or price-target cuts could be on the horizon. The majority of analysts covering the stock currently maintain a "strong buy" recommendation, while the consensus 12-month price target of $70.20 represents expected upside of 50% to Tuesday's settlement at $46.85.

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