Analysts Wax Bullish on These 2 Big-Name Stocks

Both stocks boasts affordable premium right now

Deputy Editor
Apr 9, 2024 at 10:24 AM
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Shares of American Eagle Outfitters Inc (NYSE:AEO) and Molson Coors Beverage Co (NYSE:TAP) are both higher after being upgraded.

At last glance, AEO is up 0.9% at $24.64 following a bull note from J.P. Morgan Securities. The analyst upgraded the equity to "overweight" from "neutral" and hiked its price target to $31 from $26, citing strong momentum for the company's portfolio and potential for revenue growth thanks to a "multi-year conservatism" plan.

While American Eagle stock opened at $25.25, it's pulling back slightly as the session gets underway. The security's 30-day moving average recently saved AEO's pullback near the $24 level. Though they're down 3.3% in the new quarter, the shares are 18% higher year to date.

There's room for analysts to jump on the bullish bandwagon, considering eight of 10 covering brokerages rate the stock a "hold" or "strong sell." Speculating with options looks like an affordable route, too, per AEO's Schaeffer's Volatility Index (SVI) of 39% that ranks higher than just 9% of annual readings -- implying lower-than-expected volatility expectations. 

Meanwhile, Goldman Sachs upgraded TAP to "buy" from "neutral," after saying the beverage giant boasts an attractive risk-reward profile and predicting an earnings beat for the first quarter. At last glance, the shares were up 1.4% at $67.58.

Molson Coors Beverage stock opened at $69.18 to touch its highest level since July 2023. The $67 area has served as a floor on a closing basis for the last month, and TAP boasts a 27.8% year-over-year lead.

Like AEO, TAP could also benefit from shifting sentiment. Of the 17 analysts covering the stock, just three rate it a "strong buy." Options traders can also get ahead of any unwinding sentiment with options, as Molson Coors Beverage stock's SVI reading of 20% ranks in the low 11th percentile of readings from the past 12 months.

 

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