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Wayfair Stock Upgraded on Recovery Potential
Schaeffers Research· 2024-04-04 14:51
Group 1 - Evercore ISI upgraded Wayfair Inc (NYSE:W) stock to "outperform" from "in line" and raised its price target to $80 from $65, indicating confidence in the company's potential to gain market share as the home furnishing sector recovers [1] - Wayfair's stock is currently trading at $64.83, reflecting a 3.9% increase, and has risen over 88% in the last 12 months, suggesting strong performance [1] - The stock has faced resistance at the $72 level since September, and the 20-day moving average has been guiding shares higher, indicating a potential upward trend [1] Group 2 - Analysts remain cautious, with 13 out of 30 maintaining a "hold" rating, suggesting there is room for more bullish sentiment [1] - A significant portion of the stock, 24.9%, is sold short, which could lead to a short squeeze if the stock continues to rise, as it would take over a week for short sellers to cover their positions at the current trading pace [1] - The options market shows a bullish sentiment with a 10-day call/put volume ratio of 2.97, indicating strong demand for call options compared to puts [2] Group 3 - The current low volatility expectations in the options market, as indicated by a Schaeffer's Volatility Index (SVI) rating of 61%, suggest that premium players are anticipating stable price movements [2]
Beyond Meat Stock Surges on Revenue Beat
Schaeffers Research· 2024-02-28 15:13
Group 1 - Beyond Meat Inc's shares surged by 54.2% to $11.60 after announcing fourth-quarter earnings results that beat revenue estimates and plans to "steeply reduce" costs in 2024 [1] - There is potential for a short squeeze, with 23.36 million outstanding shares representing 38% of the total float, indicating that it would take shorts over eight days to cover their positions [1] - Following the earnings announcement, four brokerages raised their price targets, with the average 12-month target price at $6.80, reflecting a 30.3% discount to the previous close, and all analysts rated the stock as "hold" or "strong sell" [1] Group 2 - Today's options activity showed significant trading volume with 98,000 calls and 66,000 puts exchanged, which is 27 times the typical volume [2] - The stock reached a five-month high of $12.12 and moved above its 200-day moving average for the first time since August 2023, indicating bullish momentum [2] - Beyond Meat has reclaimed its year-to-date breakeven mark, now up 24.6% in 2024, although it remains down 37.7% year over year [2]
Logistics Stock Recommendation Rewards Put Traders
Schaeffers Research· 2024-01-17 17:38
Group 1 - Subscribers to Schaeffer's Options Advisor publication achieved over 100% profit from the recommendation to buy ZTO Express (Cayman) Inc February 21 put options [1] - At the time of the recommendation on December 21, ZTO Express stock had just crossed below $21.50, a significant resistance level from 2018 and 2019, and was experiencing a technical weakness [1] - Despite a positive outlook from analysts, with 20 out of 21 rating it a "buy" or better, ZTO Express stock faced a 30% drop in short interest between October and November, indicating a lack of upward momentum [1] Group 2 - ZTO Express stock has seen a decline of 10.7% over the last month, despite analysts maintaining positive ratings and a further 11.8% drop in short interest [2] - The stock is down more than 15% three weeks into 2024, with a brief 7.3% gain immediately following the recommendation, followed by two consecutive weekly losses [2] - By the time subscribers exited their positions, ZTO shares were at $18.01, having touched a low of $17.55, marking the lowest level since November 2022, resulting in a 110% profit for subscribers [2]