Buzz Stocks: CVS Health Corp, Valeant Pharmaceuticals Intl Inc, and Facebook Inc

Today's stocks to watch in the news include CVS Health Corp (CVS), Valeant Pharmaceuticals Intl Inc (VRX), and Facebook Inc (FB)

Nov 8, 2016 at 9:22 AM
facebook twitter linkedin

After Monday's monster session, U.S. stocks look like they'll take a breather, as voting in the U.S. presidential election gets underway. Among specific equities in focus today are pharmacy chain CVS Health Corp (NYSE:CVS), drugmaker Valeant Pharmaceuticals Intl Inc (NYSE:VRX), and social media stock Facebook Inc (NASDAQ:FB). Here's a quick look at what's driving CVS, VRX, and FB.

  • CVS is poised to plunge 15.1% at the open -- and flirt with levels not touched since early 2014 -- after the company cut its full-year profit forecast, citing "slowing prescription growth in overall market, as well as a soft seasonal business." This, despite quarterly earnings topping expectations. Assuming CVS Health Corp shares crater, analysts may start to rethink their collectively optimistic approach. Among the 19 analysts tracking the stock, 15 have dished out a "buy" or better opinion, versus four "holds" and not one "sell." In other words, CVS could be vulnerable to downgrades. As of last night's close, the stock was sitting at $83.39, already 14.7% lower in 2016.
  • VRX shareholders are bracing for a rough day, with the stock pointed 27.9% lower pre-market after an earnings miss and a full-year guidance cut. If these losses materialize, it would translate into a fresh six-year low for the stock. Meanwhile, Valeant Pharmaceuticals Intl Inc options traders may be on pins and needles. Over the past 10 weeks, the shares have racked up a 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.17 -- in the bullishly skewed 97th annual percentile. Yesterday, VRX closed at $19.13, yielding a year-to-date deficit beyond 81%.
  • FB is testing a feature that gives page administrators the ability to post jobs and receive applications, potentially turning up the heat on networking peer LinkedIn, as well as more traditional job sites. Technically speaking, Facebook Inc shares have been strong in 2016, advancing nearly 17% to trade at $122.15. Understandably, short sellers have been shy to bet against the social media powerhouse. In fact, less than 1% of FB's float is sold short, after short interest dropped 5.5% in the most recent reporting period.

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


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners