Buzz Stocks: Netflix, Tesla Motors, Johnson Controls

Today's stocks to watch in the news include Netflix, Inc. (NFLX), Tesla Motors Inc (TSLA), and Johnson Controls Inc (JCI)

Jun 10, 2015 at 9:12 AM
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U.S. benchmarks are headed higher in pre-market action, with the Dow looking for its first win in five sessions. In company news, today's stocks to watch include streaming video giant Netflix, Inc. (NASDAQ:NFLX), electric vehicle maker Tesla Motors Inc (NASDAQ:TSLA), and auto parts maker Johnson Controls Inc (NYSE:JCI).

  • NFLX is pointed 1.1% higher ahead of the bell -- and headed for record-high territory -- much to the delight of yesterday's crop of option bulls.  Netflix, Inc. shareholders last night approved a major increase to the firm's share count, and CEO Reed Hastings said management will ask the board of directors to pursue a stock split "in due course." NFLX has already been a beast on the charts, surging more than 89% in 2015 to land at $647.15. Nevertheless, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.44 stands higher than 91% of all other readings from the past year, suggesting short-term option traders are actually more put-biased than usual. 

  • TSLA also hosted its annual shareholder meeting yesterday, where the firm made several announcements. Notably, CEO Elon Musk said CFO Deepak Ahuja will retire this year, and confirmed that the long-delayed Model X crossover deliveries will start "in three to four months." Furthermore, Tesla Motors Inc will launch an early version of its self-driving program for the Model S by the end of this month. Ahead of the bell, TSLA is pointed 2.5% lower, and could test support atop its 10-day and 20-day moving averages, which have provided a foothold since early April. The equity -- which settled at $256 yesterday -- may have been due for a short-term breather after its recent run higher, as its 14-day Relative Strength Index (RSI) sits in overbought terrain at 71. 

  • Finally, JCI is set to jump 4.1% -- and into all-time-high territory -- after the company said it could spin off its automotive business, currently under strategic review. Although Johnson Controls Inc has outperformed the S&P 500 Index (SPX) during the past three months, half the analysts following the shares maintain "hold" or worse opinions.  Plus, the security's 12-month price target of $56.75 is just a stone's throw from JCI's closing price of $51.56 on Tuesday. A round of upbeat analyst attention could stoke the bullish flames for JCI.

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