Buzz Stocks: Gap Inc, Cirrus Logic, Inc., and Ford Motor Company

Today's stocks to watch include Gap Inc (NYSE:GPS), Cirrus Logic, Inc. (NASDAQ:CRUS), and Ford Motor Company (NYSE:F)

Josh Selway

Jan 8, 2016 at 9:28 AM

AAPL
F
CRUS
GPS

U.S. futures are pointing toward a strong open this morning, as global markets recover from an ugly week. Among the equities in focus are retailer Gap Inc (NYSE:GPS), circuit producer Cirrus Logic, Inc. (NASDAQ:CRUS), and automaker Ford Motor Company (NYSE:F).

After outperforming on Thursday, GPS is set to give back over 7% at the open, after the company reported disappointing same-store sales for December. Also weighing on the shares is a price-target cut to $25 from $27 at Wedbush. For the most part, Gap Inc has been stair-stepping lower over the past 12 months, losing 36% to trade at $26.74. This is fine with short sellers, though. Over 15% of the stock's float is sold short, and it would take over a week for bears to repurchase these bets, at average daily volumes.

Apple Inc. (NASDAQ:AAPL) suppliers have been hurting this week, on reports the company is cutting back its iPhone production. Amid these concerns, CRUS reduced its quarterly revenue estimate. Still, the stock is pointed 2.6% higher in electronic trading, after Pacific Crest raised its opinion to "overweight." However, Stifel lowered its price target on Cirrus Logic, Inc. to $38 from $45. On the whole, Wall Street leans bullishly toward CRUS, with five of six analysts saying it's at least a "buy," with none calling it a "sell." The shares settled at $26.80 on Thursday, having lost over one-fourth of their value since their Dec. 7 high of $36.03 -- price action that plays right into bears' hands.

F is looking at a 2.4% pop out of the gate, after the company announced record sales in China for 2015. Earlier this week, the automaker reported its best domestic sales figures since 2006, though the Street wasn't impressed. Today's potential gains are sorely needed, since Ford Motor Company has slid almost 20% since its October peak of $15.84, last seen at $12.70. Option traders certainly appear positioned for a short-term rally. F's Schaeffer's put/call open interest ratio (SOIR) stands at 0.62 -- an annual low. In short, speculators targeting options that expire in the next three months are more call-skewed now than at any other point in the previous 12 months.