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

SHPG
F
BABA

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.

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!

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!

Special Offers from Schaeffer's Trading Partners