Tiffany & Co. Stock Dazzles After Earnings Beat

The equity is up over 42% year-over-year

Digital Content Manager
Aug 28, 2020 at 8:59 AM
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The shares of Tiffany & Co. (NYSE: TIF) are up 1.9% at $123.68 this morning, after the jewelry retailer reported second-quarter profits of $0.32 per share, significantly higher than Wall Street's estimated $0.19 per share. However, the company also posted a revenue miss, with quarterly sales dropping by 29% due to the coronavirus pandemic. The jeweler attributed the better-than-expected profits to a sales uptick in China as the country recovered, as well as online demand, which is expected to continue growing moving forward.

The security has experienced its fair share of ups and downs on the charts. Shares suffered a steep fall in late March, dropping to a low near the $103 level, only to shoot right back up to the $130 mark later in April. A similar gap happened in early June, albeit less severe this time. More recently, shares had been fighting overhead pressure at the 80-day moving average -- a former floor for the security. Regardless, Tiffany & Co. stock sports a 42.7% lead year-over-year.

Analysts are hesitant towards the security, with all 11 in coverage sporting a tepid "hold" rating. Meanwhile, the 12-month consensus price target of $133.92 is a 10.2% premium to current levels.

That sentiment is not reflected in the options pits, where calls are a Tiffany trader's best friend. TIF sports a 50-day call/put volume ratio of 2.72 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits in the 98th percentile of its annual range. This suggests a healthier-than-usual appetite for bullish bets of late.


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