Buzz Stocks: Caterpillar Inc., McDonald's Corporation, and Under Armour Inc

Today's stocks to watch in the news include Caterpillar Inc. (NYSE:CAT), McDonald's Corporation (NYSE:MCD), and Under Armour Inc (NYSE:UA)

Jul 26, 2016 at 10:26 AM
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U.S. stocks are mixed this morning, as traders digest a fresh round of blue-chip earnings. Among equities in focus are Dow stocks Caterpillar Inc. (NYSE:CAT) and McDonald's Corporation (NYSE:MCD), as well as athletic apparel retailer Under Armour Inc (NYSE:UA).

  • CAT is up 1.5% at $79.84, as the firm's second-quarter earnings beat overshadows a downwardly revised full-year forecast -- with Caterpillar Inc. citing internal restructuring costs and an uncertain global economy for the lowered outlook. CAT is up 17.5% year-to-date, but has struggled near the round $80 level, which has rejected the shares multiple times this year. In the option pits, put buying has been popular in recent months, with CAT's 50-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 2.41 in the 75th percentile of its annual range.

  • MCD is down 3.4% at $123.02, after the company's second-quarter profit fell short of estimates amid what CEO Steve Easterbrook called "softening industry growth." Nevertheless, McDonald's Corporation is still up 28% year-over-year -- most recently boosted by Pokemon Go buzz --  and touched a new all-time high of $131.96 in May. Option traders have been skeptical toward the fast-food chain, though, with MCD's 50-day ISE/CBOE/PHLX put/call volume ratio of 1.52 sitting above 74% of all other readings from the past year. An unwinding of these bearish bets could help propel the shares back into all-time high territory.

  • UA is down 1% at $43.16, after sales growth in the company's apparel division dropped below 20% for the first time in seven years. Overall, however, second-quarter earnings arrived at or above estimates. Year-over-year, the sports retailer has struggled, down over 13% -- although the stock has historically outperformed in the third quarter. Meanwhile, in the options pits, Under Armour Inc's 50-day ISE/CBOE/PHLX call/put volume ratio of 2.19 is higher than 98% of all other readings from the past year. Analysts are mostly optimistic on UA, with 16 of 27 rating the shares a "strong buy," with only a single "sell" on the books.

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