Penny Stock Takes Nasdaq By Storm After Whole Foods Team-Up

Deutsche Bank sees 'limited upside' for department stores, sending KSS lower

Managing Editor
May 7, 2018 at 2:51 PM
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Stocks are outperforming today, thanks to a surging energy sector. While penny stock Blink Charging Co (NASDAQ:BLNK) is red-hot, shares of restaurant name Del Frisco's Restaurant Group Inc (NASDAQ:DFRG) and department store concern Kohl's Corporation (NYSE:KSS) are trending lower. Here's a closer look at what has shares of BLNK, DFRG, and KSS moving today.

Whole Foods Partnership Powering BLNK

Blink Charging stock is up an incredible 175% to trade at $4.10 -- the best stock on Nasdaq today by far -- after the maker of electric vehicle chargers announced it has installed hybrid charging stations at three Amazon-owned Whole Foods Markets. Any Whole Foods shopper with an electric car can now use the stations with Blink's free app. The news has BLNK stock on track for its biggest percentage gain since January 2009. The shares, which have more than tripled since their April 26 record low of $1.28, are also on pace to close above their 60-day moving average for the first time since early February.

Earnings Miss, Barteca Buy Guts Del Frisco's Stock

Del Frisco's stock is down 8.4% to trade at $15.52, one of the worst stocks on the Nasdaq today, after the company's first-quarter earnings fell short of analyst estimates. Same-store sales figures were also lower than expected. In addition, the company announced its purchase of Barteca Restaurant Group for $325 million in cash. Despite the drop today, DFRG is still trading above its year-to-date break-even level. 

Continued downside could have analysts re-evaluating their ratings. Currently, exactly 80% of covering brokerages maintain a "buy" or "strong buy" recommendation, with not a single "sell" to be found. Plus, the average 12-month price target of $17.42 now sits nearly 12% above DFRG's current perch. 

Kohl's Stock A Victim Of Retail Slide

Retail stocks are stumbling today, with some attributing the slide to fears of higher energy prices' impact on consumer spending. Meanwhile, Deutsche Bank issued a report noting that there was "limited upside" for investors in department stores. One such victim is Kohl's stock, which at last check was down 4.5% to trade at $60.24. Although KSS stock is on track for its worst day since March 8, it has still added 11% in 2018 and appears to have found support at its 120-day moving average.

In the options pits, traders have been unusually pessimistic towards Kohl's stock, with data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) showing a 10-day put/call volume ratio of 1.48, which ranks in the 90th annual percentile. This suggests puts have been purchased over calls at a faster-than-usual clip over the past two weeks.

What's more, with Kohl's earnings not scheduled for release until Tuesday, May 22 -- after May options expiration -- front-month implied volatilities are low. KSS stock's Schaeffer's Volatility Index (SVI) of 31% ranks in the 4th annual percentile.

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