Buzz Stocks: Xerox Corp, Gilead Sciences, Inc., and BlackBerry Ltd

Today's stocks to watch include Xerox Corp (XRX), Gilead Sciences, Inc. (GILD), and BlackBerry Ltd (BBRY)

Jan 29, 2016 at 9:49 AM

U.S. stocks are higher this morning, after a surprise move from the Bank of Japan. Among the equities in focus are business supplies specialist Xerox Corp (NYSE:XRX), biotech Gilead Sciences, Inc. (NASDAQ:GILD), and mobile phone maker BlackBerry Ltd (NASDAQ:BBRY).

XRX is up 3.6% at $9.56, as traders digest the company's plans to split in two. Furthermore, activist investor Carl Icahn -- who revealed a Xerox Corp stake in November -- will hold three board seats. XRX shares have been stair-stepping lower since peaking in late 2014, touching a two-year low of $8.48 on Jan. 20, and recent option buyers are hoping for more downside. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), XRX sports a 10-day put/call volume ratio of 2.48 -- in the 97th percentile of its annual range, pointing to a healthier-than-usual appetite for bearish bets of late.

GILD is 3.7% lower at $84.33 -- and just off an annual low of $82.55 -- after the firm said CEO John Martin will be replaced by John Milligan (current chief operating officer) effective March 10. Martin will assume the role of executive chairman. In addition, GILD is reeling after the Food and Drug Administration (FDA) approved rival drugmaker Merck & Co., Inc.'s (NYSE:MRK) hepatitis C treatment. Gilead Sciences, Inc. -- which will report earnings on Tuesday -- is beloved by analysts, despite underperforming the S&P 500 Index (SPX) during the past three months. In fact, 11 out of 16 brokerage firms maintain "buy" or better endorsements, with not a "sell" to be found. A round of downgrades could exacerbate selling pressure on the biotech.

BBRY is up 1.6% at $6.98, after the firm received the go-ahead to ramp up its stock buyback plans. In addition, BlackBerry Ltd launched its first Android-based phone in India yesterday, and rumors are circulating that it could abandon its own operating system in favor of Alphabet Inc's (NASDAQ:GOOGL) Android for all future mobile devices. Should BBRY sustain today's upward momentum, a short squeeze could add fuel to the fire. Short interest accounts for a healthy 14.5% of BBRY's total available float -- representing more than six days' worth of pent-up buying demand, at the equity's average pace of trading.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!