Deckers Outdoor, Hanesbrands, Macy's Stocks Moving Today

DECK, HBI, and M are among the stocks on the move today

Feb 3, 2017 at 2:41 PM
facebook twitter linkedin

The Dow is back atop the 20,000 level, thanks to upbeat earnings and a Trump-inspired rally in bank stocks. Among specific equities in focus today are UGG maker Deckers Outdoor Corp (NYSE:DECK), underwear giant Hanesbrands Inc. (NYSE:HBI), and retail stock Macy's Inc (NYSE:M). Here's a quick look at what's moving shares of DECK, HBI, and M.

Weak Earnings, Outlook Hit Deckers Outdoor 

DECK has earned its spot at the bottom of the New York Stock Exchange today, falling 17.5% to trade at $45.82. Lower-than-expected fiscal third-quarter earnings and revenue and a disappointing full-year outlook are the cause for the sell-off, with the stock now facing its lowest close in over a year. A number of analysts have since lowered their price targets, but so far none have downgraded Deckers Outdoor Corp -- despite six "strong buy" ratings on the books, with Susquehanna actually upgrading the stock to "neutral" from "negative." In fact, just one brokerage firm out of the 14 covering the stock recommends selling it, so there's potential for bearish analyst notes to drive down the shares even further. 

Hanesbrands Shares Exposed After Earnings

HBI isn't too far behind DECK on the loser board, with the shares down 16% at $19.07, earlier touching a two-year low of $19.02. Both the company's quarterly earnings and revenue missed estimates, and its full-year forecast was also below analysts' expectations. No fewer than six analysts lowered their price targets, too, with the lowest mark of $23 coming from Stifel. Looking back, the shares have been sliding since their March 2015 record high of $34.80, and pre-earnings options traders were bracing for even more losses. Hanesbrands Inc.'s 10-day put/call volume ratio of 4.58 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is ranked in the 70th annual percentile, meaning puts have been bought to open over calls at a faster-than-usual clip. 

Hudson's Bay Buyout Buzz Boosts Macy's Stock

After rallying yesterday on M&A rumors, M is at it again, rising 4.4% to trade at $32.06, with fresh reports circulating that the company has been in takeover talks with Hudson's Bay. The stock is now on pace for its highest close since its early January bear gap, likely shocking the large number of short sellers that have piled on recently. Just in the last reporting period alone, short interest on Macy's Inc increased 14.1%. 

Get a jump-start on the day's stock market news with Schaeffer's free Opening View newsletter.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners