Buzz Stocks: Joy Global Inc., Valeant Pharmaceuticals Intl Inc, and Array Biopharma Inc

Today's stocks to watch include Joy Global Inc. (JOY), Valeant Pharmaceuticals Intl Inc (VRX), and Array Biopharma Inc (ARRY)

by Kirra Fedyszyn

Published on Dec 16, 2015 at 9:52 AM
Updated on Dec 17, 2015 at 8:12 AM

While traders hold their breath in anticipation of this afternoon's Fed announcement, U.S. stocks are looking to extend their rally into a third day. Among the equities in focus are mining interest Joy Global Inc. (NYSE:JOY), as well as drugmakers Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Array Biopharma Inc (NASDAQ:ARRY). 

  • JOY is trading 5.6% lower at $10.86 -- and just off a new 11-year low of $10.81 -- after cutting its dividend and offering disappointing full-year guidance. The retreat should have short sellers cheering. More than one-fifth of Joy Global Inc.'s available float is currently sold short, accounting for nearly seven days' worth of trading, at typical volumes. And this bearish sentiment among traders is echoed by analysts -- 13 of the 17 brokerages providing coverage on JOY give it a "hold" rating or worse.
  • VRX is up 3.3% at $113.18, after CEO Michael Pearson projected 30% profit growth for 2016 -- overshadowing a cut to its 2015 revenue forecast. The stock gapped higher on Tuesday, after Valeant Pharmaceuticals Intl Inc announced a deal with Walgreens Boots Alliance Inc (NASDAQ:WBA), which will give consumers discounts on Valeant-branded drugs. VRX still has a lot of ground to cover as it attempts to shake off its year-to-date losses, but the stock has outperformed the S&P 500 Index (SPX) by more than 50 percentage points over the past month. Plus, VRX has garnered bullish attention from options traders, who have lately shown a stronger-than-usual preference for long calls. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), VRX sports a 10-day call/put volume ratio of 3.53 -- higher than 91% of all other readings from the past year.
  • ARRY is surging 30.7% higher, trading at $5.00, thanks to positive data from a late-stage trial of its new melanoma drug. Array Biopharma Inc hit an annual low of $3.72 just last week, but traders and analysts are generally optimistic. All seven brokerages following ARRY current maintain a "buy" or better rating. And on the ISE, CBOE, and PHLX, the stock's 10-day call/put volume ratio is an incredible 274.9 -- higher than 95% of readings from the past year -- indicating nearly 275 calls bought for each put over the last two weeks.

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