Buzz Stocks: Digital Ally, Tiffany & Co, Wal-Mart Stores

Today's stocks to watch in the news are DGLY, TIF, and WMT

by Karee Venema

Published on Nov 25, 2014 at 9:34 AM
Updated on Jul 1, 2020 at 5:16 PM

Markets are poised to continue their record-setting run today, as traders digest the preliminary update on third-quarter gross domestic product (GDP). Among specific equities in focus are security and surveillance specialist Digital Ally, Inc. (NASDAQ:DGLY), high-end retailer Tiffany & Co. (NYSE:TIF), and blue chip Wal-Mart Stores, Inc. (NYSE:WMT).

  • DGLY jumped more than 12% yesterday to close at $14.05, ahead of last night's grand jury decision to not indict a police officer in the shooting death of an unarmed teenager. Following the announcement -- and despite the subsequent eruption of riots in Ferguson, Missouri -- shares of the wearable camera maker are roughly 0.9% lower right out of the gate. Year-to-date, Digital Ally, Inc. has tacked on around 50%, yet short sellers have been betting on the stock's momentum to run out of steam. Short interest jumped 5.4% in the last two reporting periods, and now accounts for more than one-quarter of the stock's available float.

  • TIF is opened nearly 5% higher, after closing last night at $105.01 -- and tagged a new record peak of $110.51 -- as traders digest the company's third-quarter earnings results. While both top- and bottom-line numbers missed consensus estimates due to sluggish growth in the Asia-Pacific region, a robust reading on same-store sales in the Americas has sparked some optimism around the Street. Heading into today's session, the stock was enjoying a respectable 13.2% year-to-date lead, and option traders have been gambling on more upside for Tiffany & Co. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, TIF's 10-day call/put volume ratio of 2.22 ranks in the bullishly skewed 76th percentile of its annual range. Echoing this call-skewed bias is the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.80, which ranks lower than 77% of similar readings taken in the past year.

  • WMT has edged 0.2% lower at the open, as traders react to reports the company's chief merchandising officer is ready to announce his departure just a few days before the all-important Black Friday shopping event. On the sentiment front, analysts are skeptical toward a stock that's tacked on more than 8% in 2014. In fact, more than half of those covering the shares maintain a "hold" or "strong sell" suggestion, while the consensus 12-month price target of $82.04 stands at a discount to the equity's current perch at $85.40. Should Wal-Mart Stores, Inc. resume its uptrend, a round of upgrades and/or price-target hikes could help propel the shares higher.

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