Buzz Stocks: Sony Corp (ADR), Best Buy Co Inc, and Toll Brothers Inc

Today's stocks to watch include Sony Corp (ADR) (SNE), Best Buy Co Inc (BBY), and Toll Brothers Inc (TOL)

May 24, 2016 at 10:37 AM
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U.S. stocks are higher, thanks stabilizing oil prices, strong housing data, and a rally in financial stocks. Among equities in focus today are technology and media stock Sony Corp (ADR) (NYSE:SNE), electronics retailer Best Buy Co Inc (NYSE:BBY), and home builder Toll Brothers Inc (NYSE:TOL).

  • SNE is up 3.8% at $27.25, despite issuing a weaker-than-expected forecast for the remainder of the fiscal year. According to Sony Corp (ADR), the dreary outlook is largely due to an earthquake that temporarily shut down one of SNE's image sensor manufacturing plants in April, which won't be up and running at full capacity again until August, although production has partially resumed. Sony Corp (ADR) shares are up over 6% year-to-date, and option buyers are betting on even more upside. On the International Securities Exchange (ISE), SNE has racked up a 10-day call/put volume ratio of 40.07 -- higher than nearly 95% of all other readings from the past year.
  • BBY is down 7.1% at $30.64, following an ugly current-quarter profit forecast. In addition, the company announced that its current CFO, Sharon McCollam, will be stepping down in June. Citigroup waxed pessimistic on the executive departure, downgrading BBY to "neutral" from "buy." BBY could find an ally in the $30 region, which marks the stock's year-to-date breakeven level and has helped control recent pullbacks. Bearish traders were fired up ahead of earnings, with the stock's 50-day ISE/CBOE/PHLX put/call volume ratio of 3.09 sitting higher than any 99% of other readings in the past 12 months. With 9.5% of BBY's float sold short, it would take traders just under two weeks of trading, at BBY's average daily volume, to cover all of the shorted shares.
  • TOL is up 5.8% at $28.68, following an upbeat earnings report. The luxury homes builder also raised the lower end of its average selling price outlook for the fiscal year, and hiked its expectations for sold homes. The stock has made progress since hitting a three-year low in February, and is set to end the week atop its 20-week trendline for the first time in 2016. Toll Brothers Inc's 10-day ISE call/put volume ratio of 3.35 sits higher than 77.5% of the past year's readings, suggesting bullish buyers are hot on the housing company. 

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