Buzz Stocks: Lululemon, ConAgra, Conatus Pharma

Today's stocks to watch include Lululemon Athletica inc. (LULU), ConAgra Foods Inc (CAG), and Conatus Pharmaceuticals Inc (CNAT)

Mar 26, 2015 at 9:30 AM
facebook X logo linkedin


With futures pointed lower, Wall Street is poised to extend yesterday's losses. Among the equities in focus are yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU), packaged food company ConAgra Foods Inc (NYSE:CAG), and biotech name Conatus Pharmaceuticals Inc (NASDAQ:CNAT).

  • LULU is set to drop 2% at the open, after the company's disappointing current-quarter forecast overshadowed strong fiscal fourth-quarter numbers. Many investors are likely cheering the dip in share price. For instance, put buying has been popular in Lululemon Athletica inc.'s options pits during the past two weeks, as the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.10 is only 4 percentage points from an annual high. Elsewhere, over 10% of LULU's float is sold short, a figure that equates to seven days' worth of trading, at normal daily volumes. The security has had a decent run on the charts in 2015 -- recently boosted by unconfirmed buyout rumors -- picking up 9.3% year-to-date to close yesterday at $60.96.

  • A strong third-quarter earnings report and upbeat outlook have CAG 1.6% higher in electronic trading. The shares have hit a rough patch lately, underperforming the S&P 500 Index (SPX) by more than 8 percentage points in the past two months, finishing yesterday at $34.94. However, ConAgra Foods Inc is still trading above its average 12-month price target of $34.80, as analysts are bearish on the equity. Also, seven of eight covering brokerage firms rate CAG a "hold" or worse. Speculators, on the other hand, have expressed a differing opinion. The security's 50-day ISE/CBOE/PHLX call/put volume ratio comes in at 7.85 -- 8 percentage points from an annual peak.

  • Ahead of the bell, CNAT has popped 49%, after the company announced successful top-line results for its non-alcoholic fatty liver disease drug, emricasan, in a phase 2 clinical trial. The pre-market surge has the shares ready to enter the black on a year-to-date basis, despite a current deficit of 17.7% as of yesterday's close at $5.76. Most analysts have high hopes for Conatus Pharmaceuticals Inc, with four of five covering brokerage firms issuing "strong buy" recommendations, compared to one "hold" and not a single "sell." Plus, CNAT's consensus 12-month price target of $13.17 is more than double current trading levels, and sits in territory not explored since March 2014.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI