Buzz Stocks: Alibaba Group Holding Ltd, Ford Motor Company, and Shire PLC (ADR)

Today's stocks to watch include Alibaba Group Holding Ltd (BABA), Ford Motor Company (F), and Shire PLC (ADR) (SHPG)

Oct 27, 2015 at 9:25 AM
facebook twitter linkedin


U.S. stocks are pointed lower this morning, with oil futures extending their retreat. Among the equities in focus are Chinese e-tailer Alibaba Group Holding Ltd (NYSE:BABA), automaker Ford Motor Company (NYSE:F), and drugmaker Shire PLC (ADR) (NASDAQ:SHPG).

  • BABA is headed for a 10% rally out of the gate -- and its best session since going public -- after the company reported estimate-beating earnings. The expected rally could shake a few option bears loose; the equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio checks in at 0.84, in the 92nd percentile of its annual range. Analysts are already in the bulls' corner, as Alibaba Group Holding Ltd boasts 19 "buy" or better ratings, compared to three "holds." On the charts, BABA has already added 29.5% in October, settling at $76.35 yesterday. 
  • F, on the other hand, is bracing for a 4.4% drop, after the Detroit darling's third-quarter profit -- which more than doubled from a year earlier -- fell short of analysts' estimates. The shares of Ford Motor Company will likely sink into the red on a year-to-date basis, after notching their highest close since early May yesterday, at $15.68. Analysts are split on the equity, with six doling out "buy" or better opinions, and seven issuing "hold" or worse recommendations. The consensus 12-month price target, though, sits at a lofty $17.88 -- in territory not charted since early 2011.
  • Outside of the earnings confessional, SHPG is set to rocket 5.6%, thanks to encouraging data for its dry eye disease treatment. Shire PLC (ADR) now plans to resubmit an application for lifitegrast to the Food and Drug Administration (FDA) in the first quarter of next year. Technically speaking, SHPG recently bounced off round-number support at $200 -- closing yesterday at $211.38 -- and today's gains should put the equity in the black year-to-date. Meanwhile, quite a few option buyers are likely cheering today's events, as the security's 10-day call/put volume ratio on the ISE, CBOE, and PHLX sits at 7.25 -- higher than 82% of all other readings from the past year.
 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners