2 Stocks Lower After Earnings

Put buying had been extremely popular on DPZ coming into today

Oct 16, 2018 at 9:48 AM
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The Dow is trading higher out of the gate this morning thanks to upbeat corporate earnings. However, not every stock is gaining after earnings. Take for example investment management giant BlackRock, Inc. (NYSE:BLK) and restaurant chain Domino's Pizza, Inc. (NYSE:DPZ), which are both in the red this morning. We'll take a closer look at shares of BLK and DPZ below.

BlackRock Stock Slide Continues

BLK stock is down 4.8% at $406.73, already hitting a new 52-week low of $4065.06, despite a third-quarter earnings beat. Traders are instead focusing on the company's disappointing sales growth, which is being chalked up to cautious sentiment out of BlackRock investors. This continues an ugly slide from the equity that began after its January peak of $594.52. In just the past three months, BLK has shed nearly 19%.

Still, no analyst notes have come through this morning, even though most are bullish on the stock. There are 12 brokerage firms covering BlackRock, and 10 of them have "strong buy" or "buy" ratings. The average 12-month price target, meanwhile, stands up at $574.38.

Domino's Same-Store Sales Growth Disappoints

DPZ shares are down 3.7% at $262.74, putting them below the 160-day moving average for the first time since Jan. 3. The company's same-store sales growth for the third quarter came in below expectations, as did overall revenue for the period. This type of pullback isn't the norm for Domino's, as the security still sports a nearly 38.5% year-to-date advance even with today's losses.

In the options pits, traders were seemingly positioned well for this type of price action. In fact, the equity's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at a high 4.52, ranking in 95th annual percentile. In short, there's been unusual put buying on DPZ in recent weeks.

 

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