VZ, FL, and SCSS are among the stocks in the news today
Stock futures are trading above fair value, as Wall Street digests the latest batch of big-cap earnings. Among specific names in focus are Dow stock
Verizon Communications Inc. (NYSE:VZ), mattress maker
Select Comfort, and athletic apparel retailer
Foot Locker. Here's a quick roundup of the news moving shares of VZ today, as well as SCSS stock and FL stock.
Verizon Stock Eyes Another Post-Earnings Slump
True to form,
VZ stock is trading down 2.6% ahead of the bell, after the telecommunications titan said first-quarter
earnings fell short of analysts' estimates. It's been a tough run for VZ since topping out at a near-term high of $54.30 in early January, with the shares down 11.3% since then, closing Wednesday at $48.94. More recently, VZ stock's 40-day moving average has emerged as a ceiling. Against this backdrop, most analysts are skeptical of VZ, with 19 of 24 maintaining a "hold" or "strong sell" recommendation toward the stock. Separately, Verizon Communications Inc. CEO
Lowell McAdam earlier this week expressed interest in merger talks with media conglomerates Walt Disney Co (NYSE:DIS) and CBS Corporation (NYSE:CBS).
SCSS Stock Points to New High After Earnings
SCSS stock is set to jump 13% at the open to a new annual high, as Wall Street cheers
Select Comfort's earnings report and upbeat outlook. Price-target hikes from Wedbush (to $25) and Stifel (to $32) are adding to the bullish buzz, This projected price action would be more of the same for the stock, which has surged 37% off its late-January lows near $19, and closed last night at $25.87. It appears as if SCSS options traders were anticipating a positive earnings reaction. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SCSS' 10-day call/put volume ratio stands at a top-heavy 1.12.
FL Stock Ready to Brush Off Disappointing Guidance
Foot Locker issued lower-than-expected first-quarter guidance, with CEO
Richard Johnson saying delayed income tax refund checks negatively impacted February same-store sales. Wedbush was quick to chime in, lowering its price target to $83 from $84, but saying it would "be buyers on any potential weakness today," and that Foot Locker's fundamentals remain intact. After closing last night at $72.65, FL stock is up 2.1% in electronic trading -- set to widen its nearly 18% year-over-year advance. An upside move would likely cheer FL options traders. At the ISE, CBOE, and PHLX, the stock's 10-day call/put volume ratio of 2.06 ranks in the elevated 78th annual percentile, meaning calls have been bought to open over puts at a faster-than-usual clip.