Analyst Update: Goldman Sachs Group Inc, Netflix, Inc., and Nucor Corporation

Analysts are weighing in on Goldman Sachs Group Inc (GS), Netflix, Inc. (NFLX), and Nucor Corporation (NUE)

Nov 18, 2016 at 3:05 PM
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U.S. stocks are down after several hawkish comments from Fed officials. Among specific equities in focus today are financial stock Goldman Sachs Group Inc (NYSE:GS), streaming service provider Netflix, Inc. (NASDAQ:NFLX), and steel stock Nucor Corporation (NYSE:NUE). Here's a quick roundup of today's brokerage notes on GS, NFLX, and NUE.

  • GS is trading 0.7% higher at $211, thanks to an upgrade to "outperform" from "neutral" by Macquarie, which cited the potential for a more hospitable environment for investment banks under the incoming Trump administration. Goldman Sachs Group Inc shares have recovered more than 52% from their post-Brexit lows, thanks to a post-election financial sector rally, with the stock touching an annual high of $212.07 earlier today. Bullish options betting has ramped up in recent weeks, with GS' 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 2.50 sitting in the bullishly skewed 72nd percentile of its annual range.

  • NFLX is up 0.8% at $115.98, after RBC analyst Mark Mahaney called the stock a "top pick" going into 2017, issuing a $150 price target -- a premium of roughly 30% to the equity's current price, and in uncharted territory. NFLX and its fellow "FANG" stocks took a tumble after the U.S. election, but found support atop its 10-week moving average, and is shaking off rumors of potential streaming competition from Amazon.com, Inc.'s (NASDAQ:AMZN). Now looks like an opportune time to strike on Netflix, Inc. options, since its Schaeffer's Volatility Index (SVI) of 32% since in just the 12th percentile of its annual range, implying near-term traders are pricing in relatively low volatility expectations, while NFLX's Schaeffer's Volatility Scorecard (SVS) sits at a relatively inflated 69, suggesting NFLX has tended to exceed option traders' volatility expectations over the past year.

  • NUE is down 1.2% at $58.75, pulling back slightly after steel stocks' post-election rally. Argus weighed in on Nucor Corporation, saying it stands to benefit from the potential increase in infrastructure spending under Donald Trump, as well as a strengthening housing market. The brokerage firm hiked its price target on NUE to $65 from $58 -- territory not charted since late 2008. NUE is up nearly 15% since the U.S. election, notching an annual high of $60.35 earlier this week. Today's speed bump may have been in the cards for NUE, since as of Thursday's close, NUE had a 14-day Relative Strength Index (RSI) of 78 -- in "overbought" territory. 
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