Buzz Stocks: Lululemon Athletica inc., Opko Health Inc., and Valeant Pharmaceuticals Intl Inc

Today's stocks to watch include Lululemon Athletica inc. (LULU), Opko Health Inc. (OPK), and Valeant Pharmaceuticals Intl Inc (VRX)

by Alex Eppstein

Published on Mar 30, 2016 at 9:17 AM

Stocks are ready to continue their run higher, following yesterday's dovish speech from Fed Chair Janet Yellen. Among the equities in focus today are yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU), as well as pharmaceutical stocks Opko Health Inc. (NYSE:OPK) and Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

  • LULU is pointed 5.7% higher pre-market, after the retailer reported better-than-expected earnings and offered in-line full-year sales guidance. The shares have been on fire lately, surging nearly 17% year-to-date at $61.24, potentially turning up the heat on bearish options traders. During the past 10 days across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Lululemon Athletica inc. has amassed a put/call volume ratio of 1.34 -- in the 83rd percentile of its annual range.
  • The Food and Drug Administration's (FDA) highly anticipated decision on Rayaldee did not come out in OPK's favor. The FDA rejected the kidney drug, citing "deficiencies" at Opko Health Inc.'s third-party contract manufacturer. As a result, the shares are poised to open 8.8% lower, after settling yesterday at $11.07. One group that won't mind a bear gap is short sellers. Nearly one-fifth of the stock's float is sold short, which would take about 19 sessions to cover, at OPK's average daily trading volume.
  • VRX has asked its lenders to waive a condition of its credit agreement so that it can delay filing its annual report without breaching contract and defaulting on over $30 billion in debt. The request has sent the stock over 4% higher in electronic trading. Still, at $28.98, Valeant Pharmaceuticals Intl Inc is saddled with a year-to-date loss of 71.5%, thanks to a series of scandals. Not surprisingly, the brokerage bunch has taken a glass-half-empty stance on the shares, with 11 of 17 analysts handing out "hold" or worse opinions.
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