Raymond James Says Buy This Solar Power Stock on The Dip

NOVA is still struggling with pressure at the $42 level today

Assistant Editor
Jul 7, 2021 at 10:57 AM
facebook twitter linkedin


Sunnova Energy International Inc (NYSE:NOVA) is in the spotlight today, after Raymond James upgraded the stock to "strong buy" from "outperform." The analyst believes now is a good time to buy the dip on the renewable energy name. NOVA surged earlier in the session, but was last seen flat, off 0.7% to trade at $38.92.  

The stock has been struggling with pressure at the $42 level, which rejected its last two attempts at a rally. But while equity is still down 8.1% year-to-date, it's gained support at the ascending 10-day moving average, which has helped guide NOVA away from its six-month lows.

The brokerage bunch is overwhelmingly bullish on Sunnova stock, with all 13 analysts sporting a "buy" or better rating coming into today. Meanwhile, short interest has added a whopping 63.7% during the two most recent reporting periods, now making up 9.8% of the stock's available float. 

Over in the options pits, NOVA sports a 10-day call/put volume ratio of 18.03 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This shows a strong penchant for puts in the past couple weeks. 

Lastly, the stock's Schaeffer's Volatility Index (SVI) of 75% stands higher than just 14% of all other readings in its annual range. This implies that options players are pricing in relatively low volatility expectations at the moment. 

 

 

 

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 Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners