Buzz Stocks: AT&T Inc., Navistar International Corp, and G-III Apparel Group, Ltd.

Today's stocks to watch include AT&T Inc. (T), Navistar International Corp (NAV), and G-III Apparel Group, Ltd. (GIII)

by Andrea Kramer

Published on Sep 2, 2015 at 9:22 AM

After a rough Tuesday, the pendulum is once again swinging to the bulls' side. Among the equities in focus are telecom titan AT&T Inc. (NYSE:T), military vehicle maker Navistar International Corp (NYSE:NAV), and clothier G-III Apparel Group, Ltd. (NASDAQ:GIII).

  • T is pointed 1.5% higher, with help from an upgrade to "buy" from "neutral" at Citigroup. The brokerage firm waxed optimistic on AT&T Inc.'s recent acquisition of DirecTV (NASDAQ:DTV), and said the stock's recent pullback provides an opportune entry point to go long. Separately, T last night said it learned of an unsolicited "mini-tender" offer of $31.30 per share from TRC Capital, which it has recommended shareholders reject. On the charts, T has indeed pulled back with the broader equities market, finishing at $32.32 yesterday -- down 3.8% year-to-date. In fact, the $32 level has emerged as a familiar line of support, containing the equity's dips since April 2012. Option traders are betting on a bounce, as the stock's 50-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at 1.38, in the 92nd percentile of its annual range, pointing to a healthier-than-usual appetite for long calls over puts of late.

  • NAV is staring at a 13.8% drop out of the gate, and could explore record-low territory, after the company confessed to its 12th straight quarterly loss. In addition, things are ramping up with the Securities and Exchange Commission (SEC), and enforcement action could be the next step. Technically, Navistar International Corp has surrendered nearly half its value in 2015, settling at $17.36 yesterday. It's no surprise to find that short interest accounts for more than one-quarter of NAV's total available float -- representing nearly nine sessions' worth of pent-up buying demand, at the stock's average pace of trading. However, if today's expected plunge comes to fruition, NAV may land on the short-sale restricted list. 
  • GIII is on pace for a 4.8% surge at the open, after the firm unveiled solid quarterly earnings and raised its full-year forecast. A post-earnings rally could shake loose some bears, and prompt a short squeeze. At GIII's average daily trading volume, it would take more than a week to buy back all the shorted shares. However, analysts are already in the bulls' corner, with seven of nine offering up "strong buy" opinions. G-III Apparel Group, Ltd. was flirting with record highs in mid-July, and today's anticipated jump should place the shares back above former support at their 10-week moving average. GIII finished at $66.91 yesterday.

Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check delivered straight to your inbox!


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report 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


The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.
Wall Street Roars Higher Amid Civil Unrest
Investors weighed a mixed bag of jobs data
AstraZeneca Stock Flat Despite COVID-19 Vaccine News
AstraZeneca saw a rise in capacity for its COVID-19 vaccine candidate
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.