Buzz Stocks: Michael Kors Holdings Ltd, BP plc, and Syngenta AG

Today's stocks to watch include Michael Kors Holdings Ltd (NYSE:KORS), BP plc (ADR) (NYSE:BP), and Syngenta AG (ADR) (NYSE:SYT)

by Karee Venema

Published on Feb 2, 2016 at 10:11 AM
Updated on Jun 24, 2020 at 10:16 AM

It's looking to be another down day on Wall Street, as traders react to tumbling crude futures -- and dismal earnings from energy issue Exxon Mobil Corporation (NYSE:XOM). Also in focus are retailer Michael Kors Holdings Ltd (NYSE:KORS), oil-and-gas firm BP plc (ADR) (NYSE:BP), and agricultural chemical company Syngenta AG (ADR) (NYSE:SYT).

  • KORS shareholders are likely cheering this morning, with the shares up 16.4% at $47.01 -- and on pace for their best day in two years -- in the wake of the company's better-than-expected fiscal third-quarter earnings report. CEO John Idol credited "continued momentum in our digital flagship business and outstanding growth in our international markets" for the results." Heading into today's session, shares of KORS had surrendered nearly 44% year-over-year, and hit a three-year low of $34.83 on Jan. 20. Against this backdrop, analysts have been lukewarm toward the stock, with 16 out of 20 issuing a "hold" recommendation (although no one maintains a "sell" rating on the underperformer).

  • BP said its profit fell 91% in the fourth quarter -- and recorded its worst annual loss ever -- well below what analysts were expecting. Additionally, the company announced it would cut an additional 7,000 jobs, or 9% of its workforce. The results are being felt worldwide, with BP plc's American depositary shares (ADS) down 8.3% at the open to $29.05 -- on track for their largest single-session percentage loss since June 2010. On the charts, BP has been charting a path lower over the past 52 weeks, down 29%. What's more, the stock tagged a five-year low of $27.55 on Jan. 20. Option traders have been bracing for more downside, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BP's 10-day put/call volume ratio of 0.73 rests in the 85th annual percentile.

  • SYT has jumped 5% out of the gate to $77.64, following reports the firm is close to being bought out by China National Chemical Corp. in a deal valued at $42.8 billion. The speculation has been swirling for some time now, and if approved, it would be the biggest-ever acquisition made by a Chinese company. Technically, SYT has shed roughly one-fifth of its value since hitting a record high of $98.15 in early June, with recent rebound attempts halted in the round $80 region. Option traders, meanwhile, have shown a preference for near-the-money calls over puts among options slated to expire in three months or less. Specifically, Syngenta AG sports a gamma-weighted Schaeffer's put/call open interest ratio (SOIR) of 0.45.
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