Buzz Stocks: Starbucks Corporation, Regeneron Pharmaceuticals Inc, and Herbalife Ltd.

Today's stocks to watch in the news include Starbucks Corporation (SBUX), Regeneron Pharmaceuticals Inc (REGN), and Herbalife Ltd. (HLF)

Nov 4, 2016 at 9:20 AM
facebook twitter linkedin

A disappointing jobs report is weighing on U.S. stocks ahead of the bell. Among specific equities in focus today are coffee giant Starbucks Corporation (NASDAQ:SBUX), drug stock Regeneron Pharmaceuticals Inc (NASDAQ:REGN), and multi-level marketing guru Herbalife Ltd. (NYSE:HLF). Here's a quick look at what's driving SBUX, REGN, and HLF.

  • SBUX is pointed 1.6% higher pre-market, after the company reported better-than-expected earnings and sales, driven by growth in Asia. Wall Street apparently isn't impressed, though, with J.P. Morgan Securities, Barclays, BMO, and Piper Jaffray each dishing out a price-target cut. This represents a break from the historically bullish norm among the brokerage crowd, as 16 of 21 analysts rate Starbucks Corporation a "buy" or better, versus five "holds" and zero "sells." That's not to say the shares have merited the upbeat attention. In fact, SBUX stock has struggled badly long term, down nearly 14% year-to-date at $51.77.
  • REGN also reported better-than-expected earnings, but warned of slowing sales growth on its flagship macular degeneration drug, Eylea. The mixed news has pressured the stock 2.4% lower ahead of the open, putting it on pace to open at a new two-year low. Last night, Regeneron Pharmaceuticals Inc settled at $336.01, already down 38% in 2016. Understandably, short sellers have been eager to bet against the shares. In fact, at REGN's average daily trading rate, it would take over a week for these bears to cover their short stock positions.
  • Carl Icahn reported late yesterday in an SEC filing that he recently upped his stake in HLF to 23.1% from 20.8%. Ahead of the open, though, the stock has failed to get a boost, still sitting at Thursday's close of $56.08. Technically speaking, Herbalife Ltd. has pulled back sharply from its mid-July two-year high of $72.22, down over 22%. As such, options traders have been blazing a bearish path of late. HLF's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 2.35 ranks in the high 85th percentile of its annual range.

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View.


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!