The Biotech Stock Ready to Double in Value reported impressive second-quarter revenue

Jul 31, 2017 at 9:27 AM
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The Dow is ready to hit a new high ahead of a busy day of economic data. Electric car manufacturer Tesla Inc (NASDAQ:TSLA), Chinese gaming issue Inc (NASDAQ:SOHU), and biotech Dynavax Technologies Corporation (NASDAQ:DVAX) are three stocks in the news to start the day, for varying reasons. Here's a quick look at what's moving shares of TSLA, SOHU, and DVAX.

Tesla Stock Tries to Rally on Model 3 Buzz

Tesla stock is edging higher in pre-market trading, after CEO Elon Musk on Friday said the company has taken more than 500,000 reservations for its Model 3 vehicle. TSLA closed last week at $335.07, up roughly 57% year-to-date but far removed from its June 23 record high of $386.99. Plus, the stock's 50-day moving average acted as stiff resistance during its last breakout attempt. 

Options traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have continued to bet bullishly, however, with Tesla's 10-day call/put volume ratio coming in at 1.18 -- meaning call buying has outpaced put buying. But premium has spiked on near-term TSLA options since last week, with the equity's Schaeffer's Volatility Index (SVI) of 52% standing as a 52-week high. Soars on Strong Sales

Shares of are trading 8% higher in electronic trading, after the company reported better-than-expected second-quarter sales and an upbeat third-quarter outlook. The stock has jumped 29.5% year-over-year to trade at $50.85, and today should reach territory not seen since January 2016. 

If SOHU stock can continue to impress on and off the charts, it could benefit from a round of bullish analyst attention. For instance, the majority of covering brokerage firms currently rate it a "hold" or worse, and the shares are trading above their average 12-month price target of $50.56. This leaves the door open for upgrades and/or price-target increases in the near future. 

Dynavax Set to Double in Value Thanks to Hepatitis B Vaccine

It's shaping up to be an unbelievable day for anyone holding Dynavax Technologies stock. A Food and Drug Administration (FDA) advisory panel voted in favor of the company's hepatitis B vaccine, and now DVAX shares are set to open a whopping 91% higher. They had already more than doubled on a year-to-date basis, settling Friday at $9.25. Analysts are expecting more upside, too. RBC upgraded DVAX to "outperform" from "sector perform" and raised its price target to $26, saying it now sees FDA approval of the vaccine as "highly probable." Meanwhile, Cowen cut its price target to $30 from $45. 

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