Work-From-Home Shift Draws Analysts to Slack Stock

Slack is slated to report earnings after the close on Thursday

Digital Content Manager
Jun 2, 2020 at 9:56 AM
facebook twitter linkedin


Several analysts are raving about work-from-home staple Slack Technologies Inc (NYSE:WORK) this morning, including Cowen, which initiated coverage with an "outperform" rating and a $45 price target. The brokerage noted the recent shift to permanent remote work, sparked by stay-at-home orders,  has given Slack the opportunity to accelerate its adoption and grow its total addressable market. Wells Fargo also chimed in, lifting its price target to $41 from $30. This has helped WORK move 6% higher in pre-market trading, to $39.39 at last check. 

These bull notes come just ahead of WORK's first-quarter earnings report, which is due out after the close on Thursday, June 4. A look back at its last three post-earnings moves since going public shows just one positive return, with Slack stock averaging a next-day move of 5.6% regardless of direction. This time around, the options market is pricing in a much bigger 22.5% swing following its quarterly report. 

Speaking of options pits, there is a definite bullish bias among these traders. In the last 10 days, 57,924 calls exchanged hands, compared to just 11,679 puts during the same time period, giving WORK a 10-day call/put volume ratio of 4.96 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). 

A look back at analyst sentiment shows that there is still room for upgrades. Coming into today, 11 called WORK a "buy" or better, compared to seven handing out a "hold" or worse rating. Meanwhile, the consensus 12-month price target of $29.48 sat at a 20.7% discount to last night's close.

This sentiment is surprising, especially considering WORK's recent behavior on the charts. The stock is going on its fourth straight win today with a solid layer of support at its 20-day and 40-day moving averages just below. A more long-term look shows Slack stock climbing back toward its all-time high of $42, which it hit the day it became public on June 20. For the year, WORK is up over 65%. Plus, it just came off its biggest one-month gain on record, up 31.3% in May. 

 

 

 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners