Buzz Stocks: Groupon Inc, Freeport-McMoRan Inc, and Canadian Solar Inc.

Today's stocks to watch include Groupon Inc (GRPN), Freeport-McMoRan Inc (FCX), and Canadian Solar Inc. (CSIQ)

by Kirra Fedyszyn

Published on Feb 16, 2016 at 10:13 AM

U.S. stocks are off to a strong start this week, as traders hope for a global freeze in crude oil production. Meanwhile, online coupon specialist Groupon Inc (NASDAQ:GRPN), natural resource company Freeport-McMoRan Inc (NYSE:FCX), and solar power interest Canadian Solar Inc. (NASDAQ:CSIQ) are among the equities in focus today.

  • GRPN is trading 25.8% higher at $3.63, after Alibaba Group Holding Ltd (NYSE:BABA) revealed it has taken a 5.6% stake in the company. Groupon Inc announced strong fourth-quarter earnings on Friday, helping the shares to rebound after hitting a record low of $2.15 on Thursday. GRPN is on pace to close above its 20-week moving average for the first time since March, and has added more than 40% so far in February. Still, 12 out of 15 analysts rate the stock a "hold" or worse, leaving the door open for potential upgrades.
  • After agreeing to sell a 13% interest in its Morenci mine for $1 billion, FCX has climbed 9.4% to $6.05. Freeport-McMoRan Inc is also getting a boost after billionaire David Tepper's Appaloosa Management reportedly took a 3.6-million-share stake. FCX shares have been steadily gaining some ground since hitting a 15-year low of $3.52 last month, and option traders have been fairly optimistic lately. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FCX has racked up a 10-day call/put volume ratio of 2.35 -- higher than 74% of all readings taken in the past year.
  • CSIQ surged 14.9% to $18.83, after reporting that its fourth-quarter and full-year earnings -- due in early March -- will exceed previous guidance. Canadian Solar Inc. is paring last week's solar-sector slump, but is struggling to surmount its 20-day moving average. Despite a year-to-date loss of more than 35%, all eight brokerages following CSIQ rate it a "strong buy," and option buyers have picked up bullish bets at a rapid-fire rate. The equity's 10-day ISE/CBOE/PHLX call/put volume ratio of 2.21 is higher than two-thirds of all other readings from the past 12 months.
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