Buzz Stocks: Kate Spade & Co, AutoZone, Inc., and Ocwen Financial Corporation

Today's stocks to watch in the news include Kate Spade & Co (KATE), AutoZone, Inc. (AZO), and Ocwen Financial Corp (OCN)

by Alex Eppstein

Published on Mar 3, 2015 at 9:25 AM
Updated on Apr 20, 2015 at 5:32 PM

U.S. benchmarks appear ready to take a breather today, following Monday's historic session. In company news, today's stocks to watch include high-end fashion designer Kate Spade & Co (NYSE:KATE), car parts seller AutoZone, Inc. (NYSE:AZO), and mortgage lender Ocwen Financial Corp (NYSE:OCN).

  • KATE's latest turn in the earnings confessional was mixed, as the company's adjusted per-share profit of 24 cents fell short of the consensus estimate, but its sales were better than expected. On the charts, the stock has added 10.3% year-to-date to trade at $35.30. This technical tenacity has led to accelerated call buying at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, Kate Spade & Co's 50-day call/put volume ratio of 4.24 rests above 90% of comparable readings from the last year.

  • AZO topped the Street's consensus earnings and sales forecasts for its fiscal second quarter, helped by higher inventory levels and new store openings. As such, the shares are nearly 4% higher in electronic trading, putting them on pace for a record peak out of the gate. AutoZone, Inc. closed Monday at $649.53, just below last Friday's all-time high of $651.95. Despite this impressive price action, AZO is facing skepticism from analysts. Fifteen out of 18 brokerage firms have designated the equity a "hold" or worse, and its average 12-month price target of $639.44 stands below current trading levels -- potentially paving the way for a round of upgrades and/or price-target hikes. On the flip side, option traders have blazed a more bullish path toward AZO.

  • Finally, OCN has agreed to sell the servicing rights on $45 billion in Fannie Mae loans to an undisclosed party, just a week after a similar $9.8 billion sale. The company is trying to raise money to offset mounting legal expenses. On the charts, Ocwen Financial Corp has had a rough go of it, surrendering nearly 77% of its value over the last 52 weeks to trade at $8.54 -- though the security is pointed 6.6% higher in electronic trading. Short sellers have turned up the heat, too, as short interest rose 29% during the most recent reporting period, and now makes up 38.8% of the stock's total float.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.
Apparel Name Boosted By Earnings Beat
Three analysts have moved their price targets down to $60
Black & Decker Withdraws 2020 Guidance, Cuts Non-Essential Staff
Black & Decker said it would reduce any non-essential staff and decided to withdraw its 2020 forecast
Look Who's Going Bankrupt Next in America
Porter Stansberry is making a concerning prediction.