Buzz Stocks: Eli Lilly and Co, Fairchild Semiconductor Intl Inc, and Mobileye NV

Today's stocks to watch include Eli Lilly and Co (NYSE:LLY), Fairchild Semiconductor Intl Inc (NASDAQ:FCS), and Mobileye NV (NYSE:MBLY)

Josh Selway

Jan 5, 2016 at 9:37 AM

GM
MBLY
FCS
LLY

Another tumultuous trading day in China has U.S. benchmarks again facing an uphill battle this morning. Among the equities in focus are drugmaker Eli Lilly and Co (NYSE:LLY), chipmaker Fairchild Semiconductor Intl Inc (NASDAQ:FCS), and driver-assistance software maker Mobileye NV (NYSE:MBLY).

LLY is 0.7% higher out of the gate, despite the company cutting its full-year sales and earnings forecasts and offering up a downbeat 2016 outlook. Though the shares have added nearly 20% in the past 12 months to trade at $81.78, they spent the second half of 2015 mostly bouncing between $80 and $88. Still, option traders appear ready for a breakout. Eli Lilly and Co's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 2.66, which tops 65% of readings from the past year. This represents quite a change from how option speculators felt one month ago.

FCS is up 3.6% at $21.20, with the company determining the latest buyout bid from China Resources Microelectronics and Hua Capital Management is superior to ON Semiconductor Corp's (NASDAQ:ON) most recent offer. The shares have already been brilliant on the charts, outperforming the S&P 500 Index (SPX) by over 38 percentage points during the past three months. Regardless, analysts remain unconvinced by Fairchild Semiconductor Intl Inc. Specifically, 90% of covering brokerage firms deem the semiconductor stock just a "hold."

MBLY is also starting the day strong, with the shares 1.6% higher at $40.57. Traders are reacting to news that the company is furthering its partnership with General Motors Company (NYSE:GM), with the firms exploring the use of new mapping technology. The shares have dropped 37% since their mid-August all-time high of $64.47, and Citron Research thinks further losses are in store. Citron isn't the only one bearish on Mobileye NV. Over 24% of the stock's float is sold short, accounting for almost 14 days' worth of buying power, at normal daily volumes.

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