Buzz Stocks: Smith & Wesson Holding Corp, Paratek Pharmaceuticals Inc, and Lumber Liquidators Holdings Inc

Today's stocks to watch in the news include Smith & Wesson Holding Corp (NASDAQ:SWHC), Paratek Pharmaceuticals Inc (NASDAQ:PRTK), and Lumber Liquidators Holdings Inc (NYSE:LL)

Jun 17, 2016 at 9:28 AM
facebook twitter linkedin

Dow futures are signaling a rocky start this morning, as U.S. stocks search for direction ahead of next week's "Brexit" vote. Among the equities in focus today are gun manufacturer Smith & Wesson Holding Corp (NASDAQ:SWHC), drugmaker Paratek Pharmaceuticals Inc (NASDAQ:PRTK), and flooring specialist Lumber Liquidators Holdings Inc (NYSE:LL)

  • SWHC is set for a big day, up 11% in pre-market trading, after the company reported much stronger-than-expected fiscal fourth-quarter earnings and offered up bullish guidance. Assuming these gains materialize, this would mark the seventh straight post-earnings win for the stock, which has added 35% in the past 12 months to trade at $21.75. A round of bullish analyst attention could come Smith & Wesson Holding Corp's way now, since just three of nine covering analysts recommend buying the stock. In fact, Cowen and Craig-Hallum just upped their ratings to the equivalent of a "buy," and boosted their price targets to $28. 
  • News that PRTK's antibiotic omadacycline hit all of its goals in a late-stage study has the stock almost 17% higher in pre-market trading. What's more, Leerink, Baird, and HC Wainwright all raised their price targets. The pending upside move would put the shares just above $19, an areas where they struggled at the start of the year. More recently, Paratek Pharmaceuticals Inc has been making a comeback, gaining almost 21% since the start of May to trade at $16.44. Shifting to sentiment, the more than 30% surge in short interest over the two most recent reporting periods stands out, and these bears will likely be licking their wounds today.  
  • LL is also on the rise, after the company announced it would no longer sell Chinese-made laminate flooring. The move -- which has LL nearly 9% higher in electronic trading -- comes in response to the flooring controversy that has plagued the stock for more than a year. In fact, Lumber Liquidators Holdings Inc was trading near $70 before the news broke in February 2015, and closed last night at $13.23. Today's potential price action is likely good news for short-term options traders, as LL's Schaeffer's put/call open interest ratio (SOIR) comes in at 0.51 -- in the 5th percentile of its annual range. 
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners