Buzz Stocks: Cisco Systems, Inc., Pep Boys-Manny Moe and Jack, and Neurometrix Inc

Today's stocks to watch include Cisco Systems, Inc. (CSCO), Pep Boys-Manny Moe and Jack (PBY), and Neurometrix Inc (NURO)

by Alex Eppstein

Published on Dec 29, 2015 at 9:29 AM

U.S. markets are set to open higher as oil prices recover. Among the equities in focus are tech titan Cisco Systems, Inc. (NASDAQ:CSCO), auto parts dealer Pep Boys-Manny Moe and Jack (NYSE:PBY), and medical device maker Neurometrix Inc (NASDAQ:NURO). 

  • A U.S. appeals court ruled that CSCO did not infringe on a Commil USA wifi technology patent, reversing a prior judgment worth $64 million. The good news has Cisco Systems, Inc. up 0.4% pre-market, as it tries to fight back from a 1.8% year-to-date deficit, settling Monday night at $27.31. Option traders have been more bearish than usual toward the stock. CSCO's 10-day put/call volume ratio of 0.64 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) outstrips all but 15% of comparable readings taken during the past year.
  • PBY is moving to terminate a buyout agreement with Bridgestone after its board determined Carl Icahn's latest offer -- valuing Pep Boys at $1 billion, or $18.50 per share -- is superior. The move has sent the shares 7% higher ahead of the open. This is more of the same for a stock that's soared over 43% to trade at $17.41 since its close on Oct. 23, just ahead of Bridgestone's initial takeover bid. Amid this rapid run-up, traders have been buying to open puts over calls at an accelerated clip, per Pep Boys-Manny Moe and Jack's 50-day put/call volume ratio of 0.39 -- registering in the 86th percentile of its annual range.
  • NURO is set to surge 26.5% at the open after the firm said it's launching a nerve conduction test in Mexico, which will be used to evaluate systemic neuropathies, common in patients with type 2 diabetes. The expected gap higher is a welcome change of pace for shareholders, who have watched the stock lose 70% of its value in 2015 to trade at $2.30 -- and hit a record low of $2.18 earlier this month. Despite this poor technical track record, both of the analysts following Neurometrix Inc rate it a "strong buy."

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