Dismal Sales Warning Has Retail Stock Spiraling to New Lows

Hibbett will unveil its full quarterly earnings report on Aug. 18

by Patrick Martin

Published on Jul 24, 2017 at 10:09 AM

U.S. stocks are trading mixed ahead of a busy week of earnings. Among specific equities in the news are oil services giant Halliburton Company (NYSE:HAL), retailer Hibbett Sports, Inc. (NASDAQ:HIBB), and biotech stock Genocea Biosciences Inc (NASDAQ:GNCA). Here's a quick look at what's moving shares of HAL, HIBB, and GNCA.

Earnings Beat Can't Save Halliburton Stock 

Halliburton stock was up 2% at the open, after the company reported adjusted profit of 23 cents per share on $4.96 billion in sales -- exceeding analysts' expectations. Nevertheless, the shares have since swung 2.7% lower to trade at $43.19. It's been a tough year for HAL stock, which is down 20% year-to-date, with last week's rally attempt quickly halted by its 80-day moving average.

Nevertheless, analysts have remained confident in HAL stock. Of  the 22 brokerages covering HAL shares, 18 rate it a "strong buy." Continued technical struggles could have analysts re-evaluating their upbeat outlooks.

Same-Store Sales Warning Has HIBB Stock Reeling

Hibbett Sports shares are down 26.6% to trade at $14.45 -- earlier hitting an eight-year low of $14.20 -- after the company said it expects second-quarter same-store sales to fall by roughly 10%, and will likely record a per-share loss of 19 cents to 22 cents for the period. HIBB stock is now staring at a stiff 61% year-to-date deficit.

Although the security is short-sale restricted today, short sellers have been betting on more downside recently. Short interest jumped 30% in the two most recent reporting periods, and now accounts for 22.5% of HIBB's available float. Hibbett Sports is scheduled to report earnings the morning of Friday, Aug. 18.

Positive Drug Data Has Genocea Stock Climbing

Genocea Biosciences stock is up 9.1% to trade at $5.51, after the company reported its GEN-003 drug for genital herpes achieved positive results for its mid-stage trials. GNCA stock has been reeling since topping out at an annual high of $7.29 on April 25, and is now trading north of its 40-day moving average -- a trendline that served as a stiff ceiling for the shares in mid-May and early June.

These recent technical struggles have likely been exacerbated by a sharp rise in short interest. These bearish bets increased by 41% during the last reporting period, and now account for nearly one-fifth of the stock's total available float.

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