Analysts are weighing in on ZOES, AMZN, and SPWR
U.S. stocks are trading higher, with the Dow Jones Industrial Average (DJIA) back on track to add a seventh day to its win streak. Among stocks in focus today are restaurant chain Zoe's Kitchen Inc (NYSE:ZOES), e-tail giant Amazon.com, Inc. (NASDAQ:AMZN), and solar stock SunPower Corporation (NASDAQ:SPWR). Here's a quick roundup of today's brokerage notes on ZOES, AMZN, and SPWR.
- ZOES is trading 5.8% lower at $22.55, following a mixed earnings report delivered last night. The restaurant stock has since been the target of some pessimistic analyst attention, with no fewer than four brokerage firms slashing their price targets, including a cut to $21 from $30 by Credit Suisse. ZOES shares have given up roughly one-fifth of their value since the beginning of 2016, and touched an all-time low of $20.20 in early October. A number of short sellers are likely cheering today's move, with ZOES short interest up 7% over the last two reporting periods. Shorted shares now account for over 34% of ZOES' float, representing 15.4 times Zoe's Kitchen Inc's average daily volume.
- AMZN is up 3.4% at $743.15, following yesterday's announcement that Soros Investment had upped its stake in the e-tail stock to over 39,500 shares. Brokerage firm Instinet has since started coverage on AMZN with a "buy" rating. Amazon.com, Inc. has stumbled in the days since Donald Trump's election victory, but has still gained 9.9% so far in 2016, notching an all-time high of $847.21 just last month. What's more, AMZN's 14-day Relative Strength Index (RSI) was an oversold 29 as of Monday's close, indicating the stock may have been due for a bounce.
- SPWR is trading higher, up 3.5% at $7.12, after Credit Suisse initiated coverage for the solar stock with a "neutral" rating and a $9 price target. Solar power stocks have come under fire since the election, with the stock notching a three-year low of $6 on Nov. 9, and now down more than 76% year-to-date. Near-term options traders don't seem especially optimistic, with SPWR's Schaeffer's put/call open interest ratio (SOIR) of 0.74 arriving in the 76th percentile of its annual range -- indicating short-term option players are more put-skewed than usual.
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