Buzz Stocks: Goldman Sachs Group Inc, Target Corporation, and Gigamon Inc

Today's stocks to watch in the news include Goldman Sachs Group Inc (GS), Target Corporation (TGT), and Gigamon Inc (GIMO)

Jan 18, 2017 at 9:17 AM
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U.S. stocks appear poised to bounce back on strong inflation data, with the Fed in focus. Among specific equities in the spotlight are financial stock Goldman Sachs Group Inc (NYSE:GS), retail interest Target Corporation (NYSE:TGT), and IT issue Gigamon Inc (NYSE:GIMO). Here's a quick look at what's driving GS, TGT, and GIMO.

  • GS reported earnings and revenue above analysts' expectations, thanks to a surge in trading revenue during the post-election market rally. The shares are up 0.5% ahead of the bell, but the generally lukewarm brokerage bunch has yet to weigh in. Goldman Sachs Group Inc shares were hit hard on Tuesday, putting the bank stock in negative year-to-date territory, at $235.74. And options traders may not mind if the losses keep coming. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GS has a 50-day put/call volume ratio of 0.70 -- just 4 percentage points from an annual bearish high.
  • TGT is sliding 3.5% in pre-market trading after the company slashed its current-quarter outlook following disappointing holiday sales -- a prevailing trend among retailers. At $70.94, the stock is just above its year-over-year breakeven level, but a breach of support at the round $70 mark could spell more trouble for the shares. Analysts have already been broadly bearish toward Target Corporation, with 10 out of 15 firms calling TGT a "hold" or "strong sell," but the average 12-month price target of $78.00 stands at a 10% premium over current levels, suggesting a round of price-target cuts could be ahead.
  • GIMO is set to drop nearly 23% at the open, after the company said it expects to fall short of fourth-quarter guidance when it reports earnings just over two weeks from now. The news has already earned Gigamon Inc price-target cuts from Credit Suisse, Needham, and Stifel, with the latter setting the lowest bar, at $40 -- a level the shares haven't breached in nearly six months. Should these losses materialize, GIMO may also find itself below the 200-day moving average -- a recent layer of support -- for the first time since last February. And that's just fine with short sellers. These bearish bets edged higher in the most recent reporting period, and currently represent 8.9% of GIMO's total float, or more than a week's worth of buying power, at the stock's typical daily volumes. 

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