Both names lifted their annual forecasts and reported quarterly beats
Stocks are slightly higher, as traders digest an earlier speech from Fed Chair Jerome Powell, who said the central bank will monitor "significant risks," and "continue to act as appropriate to sustain this expansion." Two specific stocks headed higher are shoe retailers Genesco Inc. (NYSE:GCO) and Zumiez Inc. (NASDAQ:ZUMZ). Below, we'll take a look at what's driving the shares of GCO and ZUMZ.
GCO Stock Beat-and-Raise Lures Options Traders
Genesco this morning announced a surprise second-quarter profit of 15 cents per share, versus the 1-cent per-share loss expected by analysts. The firm also lifted its full-year forecast, citing strength in its Journeys unit. The equity is set to close above its 40-day moving average for the first time since June, and hit a seven-week high of $42.29 earlier. The security is now up 6.5% at $37.67.
The stock's typically quiet options pits have lured some traders to the table today. So far, 938 calls and 422 puts have crossed the tape -- 41 times what is typically seen at this point. The September 40 call is by far the most popular, with a chunk of these contracts possibly being sold to open. In this case, call writers expect the underlying stock hold beneath the $40 region up until the contract expires on Friday, Sept. 20.
Strong Earnings Helps ZUMZ Stock Hit New High
Zumiez is flying high after earnings, too. The retailer posted a second-quarter profit and revenue beat, and raised its annual forecast. The equity hit a one-year high of $30.60 earlier, and is now up 8.4% to trade at $29.93, set for its fourth straight win, and biggest one-day jump since early June.
This beat-and-raise has captured the attention of analysts. D.A. Davidson lifted its price target to $28 from $20, and Jefferies hiked its price target all the way to $34 from $28, with the latter saying ZUMZ's full-year forecast hike stood out against a dismal retail backdrop, especially considering weaker traffic in malls.
The stock's consensus 12-month target price of $29 is now at a slight discount to current levels. A round of upgrades could still be on the horizon, too, considering that half of the six brokerages in coverage consider ZUMZ a "hold" or worse.