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Buzz Stocks: Winnebago Industries, Inc., HP Inc, and QEP Resources Inc

Today's stocks to watch in the news include Winnebago Industries, Inc. (WGO), HP Inc (HPQ), and QEP Resources Inc (QEP)

Jun 22, 2016 at 10:15 AM
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U.S. stocks are up slightly, a day after Fed Chair Janet Yellen warned about the effects that "Brexit" could have for the economy. Among equities in focus today are RV manufacturer Winnebago Industries, Inc. (NYSE:WGO), tech stock HP Inc (NYSE:HPQ), and oil-and-gas stock QEP Resources Inc (NYSE:QEP).
 
  • WGO is up 5.7% at $22.84, after beating fiscal third-quarter earnings and revenue forecasts. Winnebago Industries, Inc. President and CEO Michael Happe cited "continued strong growth in our towables business, combined with a moderate climb in our motorized shipments" for the strong sales. This latest jump puts WGO up 13.8% for the year, though the stock is struggling to break out of a channel of lower highs and lows since early 2014. Similar to last June, short sellers may be concerned, with 11.8% of the stock's float sold short -- an amount that would take over 18 days of trading, at WGO's average daily volume, to cover. 
  • HPQ is down 3.6% at $12.85, despite raising its third-quarter earnings guidance and discussing plans to use proceeds from a software sale to invest in print. Further, Deutsche Bank subsequently upped its price target on HPQ to $15 from $12. Despite today's dip, HP Inc is up 43.9% since hitting a two-year low in February. Option traders have been especially bearish, though, with HPQ's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) of 2.82 sitting higher than 94% of all other readings taken in the past 12 months. Should HPQ resume its year-to-date rally, a mass exodus of option bears could add fuel to the stock's fire.
  • QEP is down 6.8% at $18.01, after the company announced it would be purchasing land in Texas' Permian Basin to the tune of $600 million, funded by a 20-million-share offering. With oil price hovering near $50 per barrel, QEP Resources Inc is hoping to take advantage of the region's oil-leaden shale formations. Analysts seem to have faith in the stock -- which, prior to today, had outperformed the greater S&P 500 Index (SPX) by 41 percentage points over the last 60 sessions -- with 11 out of 14 rating it a "buy" or better, without a single "sell" to be found.
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