Buzz Stocks: Amazon.com, Inc., Chipotle Mexican Grill, Inc., and Zagg Inc

Today's stocks to watch include Amazon.com, Inc. (AMZN), Chipotle Mexican Grill, Inc. (CMG), and Zagg Inc (ZAGG)

Mar 9, 2016 at 9:24 AM
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U.S. stocks are set to bounce back, with futures pointed higher on the back of a rebound in oil prices. Among equities in focus are e-tailer Amazon.com, Inc. (NASDAQ:AMZN), restaurant chain Chipotle Mexican Grill, Inc. (NYSE:CMG), and electronics stock Zagg Inc (NASDAQ:ZAGG).

  • AMZN has secured a deal with Air Transport Services Group Inc. (NASDAQ:ATSG) to operate the e-commerce site's air cargo network, which will act as a "supplement to existing transportation and distribution resources," according to ATSG's CEO. The agreement has Amazon.com, Inc. pointed 0.7% higher in electronic trading, after it closed at $560.26 yesterday. Longer term, the shares have been muscling higher since their February lows, thanks to a bounce off of their 60-week moving average. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 1.08 AMZN puts for each call during the last two weeks. Should the stock extend its upward momentum, a capitulation among these skeptics could add fuel to its fire.
  • CMG is bracing for a 2.2% drop out of the gate, following reports that four employees became sick with norovirus at a Boston-area restaurant. This is, of course, the last thing the restaurant chain wants, considering a string of food-borne illnesses ushered the stock to a two-year low of $399.14 in mid-January. Chipotle Mexican Grill, Inc. has a history of strong March performances, but the latest scare could potentially wipe out its 3% month-to-date gain that has it at $524.69. That would be bad news for option traders, who have been buying to open calls over puts at a rapid pace of late. Specifically, CMG's 10-day ISE/CBOE/PHLX call/put volume ratio of 1.10 ranks in the 85th percentile of its annual range.
  • ZAGG has fallen nearly 13% ahead of the bell, after the gadget guru reported worse-than-expected fourth-quarter earnings. A drop of that magnitude would represent a huge setback for the stock, which settled at $10.45 yesterday -- having rallied almost 19% since its mid-January lows. While Zagg Inc shareholders may be worried, short sellers are in celebration mode. During the last two reporting periods, short interest on ZAGG jumped 14.5%, and now accounts for nearly 16% of its total float. At the stock's average daily volumes, it would take more than one week for shorts to buy back their bets.
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