EARN25

Analyst Upgrades: Southwest Airlines Co, Whole Foods Market, Inc., and Zumiez Inc.

Analysts upwardly revised their ratings on Southwest Airlines Co (LUV), Whole Foods Market, Inc. (WFM), and Zumiez Inc. (ZUMZ)

Jan 7, 2016 at 9:59 AM
facebook X logo linkedin


Analysts are weighing in on airline interest Southwest Airlines Co (NYSE:LUV), health food grocer Whole Foods Market, Inc. (NASDAQ:WFM), and apparel retailer Zumiez Inc. (NASDAQ:ZUMZ). Here's a quick roundup of today's bullish brokerage notes on LUV, WFM, and ZUMZ.

  • Morgan Stanley raised its rating on LUV to "equal weight" from "underweight" this morning, sending the shares up 0.4% to $43.03. Southwest Airlines Co. has dropped 16% since hitting an all-time high of $51.34 one month ago. Option traders appear ready for another rally, though, with bullish bets flying off the shelves the past two weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LUV has a 10-day call/put volume ratio of 5.22 -- higher than 78% of the past year's readings. This ratio is even more impressive when compared to the stock's 50-day call/put volume ratio, which is in the lowest percentile for the year, at 1.17.
  • WFM is down 0.6% at $33.23, as broad-market headwinds overshadow a price-target boost to $31 at Jefferies. Healthy resolution makers haven't helped Whole Foods Market, Inc. to start 2016 particularly strong, as the security tries to hold its ground above a four-year low of $28.73, tapped in early November. Analysts have not been impressed with the stock, as 18 out of 22 brokerages are sitting on tepid "hold" ratings, and the equity's 12-month consensus price target of $30.54 is below WFM's current value. Traders have been eyeing new lows, as well -- more than 10% of the stock's available float is currently sold short.
  • ZUMZ is soaring 22% at $18.36, as shareholders and analysts respond to the company's boosted current-quarter guidance. ZUMZ scored three price-target increases, at Mizuho (to $16), Suntrust Robinson (to $16), and Credit Suisse (to $15). Zumiez Inc. had a dismal 2015, surrendering more than 60% of its value. Unsurprisingly, only two out of 14 analysts give the stock a rating better than "hold," and option traders have been bearish in the extreme. On the ISE, CBOE, and PHLX, seven ZUMZ puts have been bought to open for each call over the last 10 trading days.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!
 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!