Earnings Roundup: SYSCO Corporation and Vuzix Corporation

SYSCO Corporation (SYY) is rallying on earnings, while Vuzix Corporation (VUZI) is down big following its quarterly report

Alex Eppstein
Aug 15, 2016 at 10:25 AM
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The earnings calendar slows down this week, though a number of notable names are still reporting. This morning, food stock SYSCO Corporation (NYSE:SYY) and wearable display specialist Vuzix Corporation (NASDAQ:VUZI) reported earnings, and as a result, they're both moving rapidly in early trading. We'll take a closer look at both stocks below.

Out of the gate, SYY has jumped 2.4% to trade at $53.45 -- and earlier hit a new record high of $53.97 -- following an earnings beat. As a result, the stock's year-to-date lead is now topping a gaudy 30%, easily besting the broader market. What's more, the shares continue to ride atop support at their 10-week moving average.

While SYSCO Corporation shareholders are on cloud nine, put buyers may be feeling the pain. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open nearly five puts for every call in the last 10 days. The resultant put/call volume ratio of 4.80 ranks in the bearishly skewed 85th annual percentile. That said, some of the recent put buying may have come at the hands of shareholders hedging their long stock positions ahead of earnings.

On the flip side, VUZI dropped more than 10% after the opening bell, and was last spotted down 4.1% at $7.55, following a steep second-quarter loss. The stock touched a three-year high of $9.30 less than a month ago, but since then, has plummeted nearly 19%. In the process, the shares are on track to breach their 10-week moving average for the first time since early May.

If these struggles persist, bullish analysts may begin to wash their hands of Vuzix Corporation. Currently, both of the brokerage firms tracking the stock consider it a "buy," while its consensus 12-month price target of $10 stands 32.5% above current levels.

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