Healthcare Stock Named "Gold Standard" Of Its Industry

Dismal earnings have QIWI near the bottom of the Nasdaq

by Patrick Martin

Published on Aug 16, 2018 at 2:24 PM
Updated on Jun 24, 2020 at 10:16 AM

Stocks are soaring today, vaulting higher thanks to upbeat earnings and trade optimism. Looking at individual names, payment services provider Qiwi PLC (NASDAQ:QIWI) is lower, while online discount warehouse Overstock.com Inc (NASDAQ:OSTK) and telehealth company Teladoc Inc (NYSE:TDOC) are higher. Here's a closer look at how shares of QIWI, OSTK, and TDOC are trading today.

Second-Quarter Profit Miss Buries QIWI

Qiwi stock is down 13.8% to trade at $13.50, and earlier touched an annual low of $12.50, after the company reported second-quarter earnings that fell short of Wall Street estimates. The Russian firm also lowered its full-year guidance for 2018. QIWI stock is on track for its worst day since April 2016, and one of the worst stocks on the Nasdaq today. 

Although the stock is currently on the short-sale restricted list (SSR), there is ample room aboard the bearish bandwagon. Short interest fell 15% in the most recent reporting period, and the 140,000 shares sold short represents a meager 0.67% of QIWI's total available float. 

OSTK Gains On Investor Talks

Shares of Overstock.com are up 1.7% to trade at $30.98, after the company disclosed it was negotiating with potential investment partners. OSTK has traded within a tight range since April, with the $30 level providing support during that time. Despite the rally today, the equity has still lost more than half of its value in 2018, and is on track to post its worst week of the year.

Those looking to bet bearishly on OSTK may want to consider options. The stock's Schaeffer's Volatility Index (SVI) is currently at 70%, which registers in the 14th percentile of its annual range -- indicating short-term options are attractively priced at the moment, from a volatility perspective.

Furthermore, the security has consistently rewarded premium buyers over the past year. The security's Schaeffer's Volatility Scorecard (SVS) docks in at a healthy 93 out of 100. This suggests that OSTK has tended to make larger-than-expected moves on the charts, compared to what the options market was expecting.

Analysts Are Loving Red-Hot TDOC 

Teladoc stock is up 2.5% to trade at $72.50, after Leerink initiated coverage on the telehealth name with an "outperform" rating and $90 price target. The analyst in coverage named TDOC the "gold standard" of a market it expects to grow to $83 billion annually by 2028 compared to its current $57 billion valuation. TDOC stock is a chip-shot off its Monday record high of $73.25. The shares have already more than doubled in 2018, with their ascending 50-day moving average containing a late-July pullback. 

A short squeeze could be fueling this upswing. Short interest fell by 3.7% in the two most recent reporting periods, yet the 18.31 million shares sold short still represents a whopping 32% of TDOC's total available float, and more than two weeks of pent-up buying power. 


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