Buzz Stocks: Eli Lilly and Co, Fairchild Semiconductor Intl Inc, and Mobileye NV

Today's stocks to watch include Eli Lilly and Co (NYSE:LLY), Fairchild Semiconductor Intl Inc (NASDAQ:FCS), and Mobileye NV (NYSE:MBLY)

by Josh Selway

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Published on Jan 5, 2016 at 9:37 AM

Updated on Jun 24, 2020 at 10:16 AM

Another tumultuous trading day in China has U.S. benchmarks again facing an uphill battle this morning. Among the equities in focus are drugmaker Eli Lilly and Co (NYSE:LLY), chipmaker Fairchild Semiconductor Intl Inc (NASDAQ:FCS), and driver-assistance software maker Mobileye NV (NYSE:MBLY).

LLY is 0.7% higher out of the gate, despite the company cutting its full-year sales and earnings forecasts and offering up a downbeat 2016 outlook. Though the shares have added nearly 20% in the past 12 months to trade at $81.78, they spent the second half of 2015 mostly bouncing between $80 and $88. Still, option traders appear ready for a breakout. Eli Lilly and Co's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 2.66, which tops 65% of readings from the past year. This represents quite a change from how option speculators felt one month ago.

FCS is up 3.6% at $21.20, with the company determining the latest buyout bid from China Resources Microelectronics and Hua Capital Management is superior to ON Semiconductor Corp's (NASDAQ:ON) most recent offer. The shares have already been brilliant on the charts, outperforming the S&P 500 Index (SPX) by over 38 percentage points during the past three months. Regardless, analysts remain unconvinced by Fairchild Semiconductor Intl Inc. Specifically, 90% of covering brokerage firms deem the semiconductor stock just a "hold."

MBLY is also starting the day strong, with the shares 1.6% higher at $40.57. Traders are reacting to news that the company is furthering its partnership with General Motors Company (NYSE:GM), with the firms exploring the use of new mapping technology. The shares have dropped 37% since their mid-August all-time high of $64.47, and Citron Research thinks further losses are in store. Citron isn't the only one bearish on Mobileye NV. Over 24% of the stock's float is sold short, accounting for almost 14 days' worth of buying power, at normal daily volumes.

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