2 Stocks Slipping After Earnings

BBBY is rebounding on new CEO buzz

Digital Content Manager
Sep 5, 2019 at 12:37 PM
facebook twitter linkedin

Stocks keep rising on a big boost from Caterpillar (CAT) and renewed trade optimism. Three specific stocks making moves today are tech name Slack Technologies Inc (NYSE:WORK), as well as home goods retailers Bed Bath & Beyond Inc. (NASDAQ:BBBY), and At Home Group Inc (NYSE:HOME). Below, we'll take a look at what's driving the shares of WORK, BBBY, and HOME.

Slack Technologies Hits New Low on Q3 Outlook

Workplace chat concern Slack Technologies revealed its first earnings report as a public company. However, the firm predicted a wider-than-expected loss for its third quarter, which sent the stock spiraling toward a record low of $26 earlier today. Now WORK is down 6% to trade at $29.51. 

Ahead of WORK's earnings debut options players were piling on the bullish bets, with 2.39 calls bought for every put on the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) during the last two weeks. Today, roughly 45,000 calls and 35,000 puts have crossed the tape -- 14 times the intraday average. The most popular is the September 30 strike call, with positions being opened here, followed by the September 25 and 27 puts. 

CEO Buzz Extends BBBY Stock's Rebound

News that Bed Bath & Beyond expects to reveal its new CEO in the next few weeks has the shares extending their rally today, up 9% at $10.33. The firm also revealed plans to reduce inventory costs up to $1 billion in the next year and a half.

This announcement has BBBY eyeing a close atop the 50-day moving average. What's more, the stock is now roughly 41% off its Aug. 15 all-time low of $7.31. This positive price action has options bulls on board, too. BBBY sports a 10-day call/put volume ratio of 3.73 on the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 90th percentile of its annual range, too, suggesting a bigger appetite for bullish bets of late. 

HOME Stock Hit With Bear Notes After Earnings Miss

Furniture retailer HOME is continuing to struggle on the charts after reporting a second-quarter revenue miss and projecting weaker-than-expected profits for its third quarter. The equity touched a two-week low of $5.61 earlier, and is now down 7.2% to trade at $6.41, testing its footing on recent support at its 50-day moving average. 

Analysts have been quick to chime in with price-target cuts, including Jefferies (to $9), Guggenheim (to $10), and Wells Fargo (to a Street low of $6). Considering HOME's 65.5% year-to-date defect, even more bear notes could be on the way. Three of the eight analysts in coverage consider At Home a "strong buy," and its consensus 12-month price target of $8.55 is at a 33.2% premium to current levels. 



If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners