Buzz Stocks: Best Buy, bluebird bio, and Omnicare

Today's stocks to watch include Best Buy Co Inc (NYSE:BBY), bluebird bio Inc (NASDAQ:BLUE), and Omnicare, Inc. (NYSE:OCR)

May 21, 2015 at 9:30 AM
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Heading into a jam-packed session on the economic front, U.S. stocks are pointed lower. Among the equities in focus are electronics retailer Best Buy Co Inc (NYSE:BBY), biotech concern bluebird bio Inc (NASDAQ:BLUE)​, and healthcare services provider Omnicare, Inc. (NYSE:OCR).

  • BBY is getting a lift this morning from impressive first-quarter numbers. Shares of the retailer are 8% higher in pre-market trading after closing yesterday at $33.78. While 2015 has been tough on Best Buy Co Inc, the stock is a longer-term success story, adding over 33% in the past 12 months. In recent months, though, options traders have grown pessimistic. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.12 is only 8 percentage points from an annual bearish peak.

  • BLUE is set to do even better out of the gate, as the stock is up 11.6% ahead of the open -- and on pace for a record high -- after the company announced a patient with sickle cell disease was treated successfully using its gene therapy. It's not like bluebird bio Inc needed to boost shareholder morale. The equity closed yesterday at $165.71, compared to a closing price of just $23.30 this time last year. This dominant technical performance is likely part of the reason all nine brokerage firms tracking BLUE say it's a "strong buy." Also, its consensus 12-month price target is $201.13 -- a 21.4% premium to current levels, and territory never before seen.

  • OCR is sporting a 1.3% lead in electronic trading, due to news the company will be purchased by CVS Health Corp (NYSE:CVS) for nearly $13 billion. Omnicare, Inc. has been strong on the charts, outdoing the S&P 500 Index (SPX) by almost 20 percentage points over the past three months. In fact, the security touched an all-time high of $95.09 yesterday, before settling at $94.63. Put buying has been more popular than normal, nonetheless. OCR's 50-day ISE/CBOE/PHLX put/call volume ratio of 0.17 is higher than 82% of readings from the past year.
 

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