Buzz Stocks: J C Penney Company Inc, Concordia International Corp, and Endo International plc

Today's stocks to watch in the news include J C Penney Company Inc (JCP), Concordia International Corp (CXRX), and Endo International plc - Ordinary Shares (ENDP)

by Alex Eppstein

Published on Aug 12, 2016 at 9:22 AM
Updated on Aug 12, 2016 at 10:19 AM

U.S. stocks are set to open on a weak note, following a mixed round of economic data. Among equities in focus today are retail stock J C Penney Company Inc (NYSE:JCP), as well as pharmaceutical firms Concordia International Corp (NASDAQ:CXRX) and Endo International plc - Ordinary Shares (NASDAQ:ENDP)

  • JCP reported a smaller-than-expected quarterly loss and reaffirmed its full-year guidance, though same-store sales were slightly disappointing. As such, the stock is primed to follow in the bullish post-earnings footsteps of its sector peers, pointed 1.2% higher pre-market. J C Penney Company Inc has been hot since its May lows just above $7, and closed Thursday at $9.94. While Wednesday proved a notable exception, options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have in recent weeks been betting against further gains. Specifically, JCP's 10-day put/call volume ratio of 1.26 ranks in the 79th percentile of its annual range.
  • CXRX's turn in the earnings confessional was a letdown, with its adjusted per-share profit falling shy of the consensus view. Adding salt to the wounds, the company lowered its full-year outlook, suspended the stock's quarterly dividend, and replaced its chief financial officer. Not surprisingly, Concordia International Corp is bracing for a 20.5% drop out of the gate, suggesting the shares could explore two-year lows after settling yesterday at $16.36. This should be an encouragement to short sellers, considering over 31% of CXRX's float is dedicated to short interest.
  • ENDP has withdrawn its supplemental new drug application (SNDA) for pain medication OPANA, centered on specific abuse-deterrent labeling. Separately, Mizuho Securities upgraded its opinion to "buy" from "neutral," and raised its price target to $29 from $16 -- just the latest in upbeat analyst attention for the stock. After settling yesterday at $23.01 -- its highest closing perch since early May -- Endo International plc shares are up another 1.3% in pre-market trading. Meanwhile, expectations at the ISE, CBOE, and PHLX are bullish. Traders have bought to open 6.59 ENDP calls for each put during the past two weeks, and the corresponding call/put volume ratio ranks near the top quartile of its annual range.

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