Q2 STOCKS TO BUY

Intel Stock Downgraded; Costco Analyst Spooked By Amazon

Options traders and analysts have been growing wary of Qorvo stock

Jul 10, 2017 at 10:01 AM
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Analysts are weighing in on semiconductor stock Intel Corporation (NASDAQ:INTC), Apple supplier Qorvo Inc (NASDAQ:QRVO), and bulk retailer Costco Wholesale Corporation (NASDAQ:COST). Here's a quick roundup of today's bearish brokerage notes on shares of INTC, QRVO, and COST. 

Intel Stock Downgraded at Jefferies

While Jefferies waxed optimistic on fellow semiconductor stocks NVIDIA and Xilinx, the brokerage firm downgraded Intel stock to "underperform" from "hold," and slashed its price target to $29 from $38 -- a discount to Friday's closing price of $33.88. At last check, INTC shares were down 1.4% at $33.41, but appears to be finding support near a familiar foothold. Specifically, the $33.20-$33.50 region has contained all of INTC's pullbacks over the past year, and is currently home to its 120-week moving average.

Nevertheless, Intel shares remain down almost 8% year-to-date, and analysts are split. Of the 26 covering brokerages, 15 maintain a "buy" or better rating, versus 11 with a "hold" or worse.

QRVO Stock Slapped With Price-Target Cut

Brokerage firm Mizuho cut its price target on Apple supplier Qorvo stock to $70 from $72. The shares of QRVO have dropped roughly 17% since touching a multi-year peak of $79.33 in late May, and were last seen down 1.7% at $64.77. Options buyers have been upping the bearish ante. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), QRVO's 10-day put/call volume ratio of 3.32 is higher than 96% of all other readings from the past year. 

BMO Capital Downgraded Costco Shares 

BMO Capital reduced its opinion on Costco Wholesale stock to "market perform" from "outperform," as the analyst said the retailer's June comparable-sales growth isn't enough to dash fears stemming from Amazon's Whole Foods buyout. In reaction, COST stock has dropped 1.3% to trade at $152.05, and has now shed nearly 17% since notching a record peak of $182.72 on June 6. Bigger losses could have more analysts downwardly revising their ratings. Heading into today's trading, two-thirds of brokerages maintained a "buy" or better recommendation on Costco, with not a single "sell" to be found.

 
 

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