Q2 STOCKS TO BUY

Buzz Stocks: Tyson Foods, Inc., Vertex Pharmaceuticals Incorporated, and Symantec Corporation

Today's stocks to watch include Tyson Foods, Inc. (NYSE:TSN), Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), and Symantec Corporation (NASDAQ:SYMC)

Feb 5, 2016 at 10:00 AM
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Stocks have moved lower at the open, after the payrolls report fell short of economists' expectation. Looking elsewhere on the Street, chicken producer Tyson Foods, Inc. (NYSE:TSN), drugmaker Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), and data security specialist Symantec Corporation (NASDAQ:SYMC) are among the stocks to watch.

  • TSN is up 12.1% out of the gate at $58.24 -- and earlier tagged an all-time high of $56.92 -- after the company upwardly revised its full-year profit forecast amid declining feed and livestock costs. The stock has been a technical standout for some time, boasting a 46% year-over-year lead. However, plenty of skepticism is levied toward Tyson Foods, Inc. Short interest, for example, accounts for 7.7% of the security's available float, representing a week's worth of pent-up buying demand, at TSN's average daily volume. An unwinding of these bearish bets could help the shares extend their trek into uncharted territory.

  • It's been a rough start to the year for VRTX, down 29.6% so far, and fresh off a Jan. 28 earnings-induced annual low of $81.98. The stock is extending this slide today -- off 3.4% at $88.63 -- after the Food and Drug Administration (FDA) denied the company's application to expand the use of its cystic fibrosis drug, Kalydeco. Meanwhile, in the options pits, speculators have been quick to initiate long puts over calls in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Vertex Pharmaceuticals Incorporated's 50-day put/call volume ratio of 1.65 ranks in the 85th percentile of its annual range.

  • SYMC is up 6.3% at the open at $20.39 -- and could possibly post its best one-day percentage gain in two years -- after Silver Lake Capital said it has invested $500 million in the firm, and Elliott Management Corp revealed it was Symantec Corporation's largest shareholder. Additionally, SYMC unveiled stronger-than-forecast earnings, a $2.3 billion share buyback, and a special dividend of $4 per share. The stock could certainly use the boost, considering it's shed 18% year-over-year, and hit an analyst-induced record low of $18.31 on Jan. 20. Overall, analysts are extremely skeptical of the shares, with 17 out of 18 brokerages covering SYMC maintaining a "hold" or worse rating.
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