Analysts are expecting one semiconductor stock to double
U.S. stocks are trading lower this afternoon, though they're well off session lows. One outdoor sporting goods retailer bucking the trend is Sportsman's Warehouse Holdings Inc (NASDAQ:SPWH). Other stocks in the spotlight today are farm machinery maker Deere & Company (NYSE:DE) and semiconductor stock Micron Technology, Inc. (NASDAQ:MU). Here's a quick look at what's moving shares of SPWH, DE, and MU.
SPWH Bucks Sporting Retailers' Downward Trend
Sportsman's Warehouse Holdings stock is up a whopping 35.2% to trade at $4.67, after the company reported second-quarter earnings and well-received guidance. SPWH stock touched a record low of $3.40 yesterday, but is now is testing its 120-day moving average, which has capped rally attempts since October. Today's rally places SPWH at the top of the list for biggest percentage gainers on the Nasdaq -- bucking today's downward trend for sporting retailers Foot Locker and Hibbett Sports stocks.
Today's rally also leaves room for a potential squeeze from shorts, with short interest on SPWH representing more than three weeks' of pent up buying demand, at the stock's average pace of trading.
Lackluster Sales Send Deere & Company Stock Lower
Lackluster sales for a second straight quarter have Deere & Company stock down 7.8% to trade at $114.63. As such, Baird downgraded the stock to "neutral" and slashed its price target by $10 to $130 -- still higher than yesterday's close of $123.98. The farm equipment stock hit a record high of $132.49 last Wednesday, but has since pulled back to find support from it's 180-day moving average. Today's drop ranks DE among the worst on the New York Stock Exchange (NYSE) and the S&P 500 Index (SPX).
Shorts are likely cheering today's decline, as short interest on DE has grown roughly 16% during the past two reporting periods -- now representing nearly 13 times' DE's average daily trading volume.
Analysts Expect Micron Technology Stock to Double
Micron Technology stock is up 2.5% to trade at $30.37, after Stifel raised its price target on MU to $62 from $60 -- more than twice the stock's current price. The semiconductor stock could also be trading higher due to a halo lift from sector peer Applied Materials (AMAT), which reported impressive earnings earlier. Up 38% year-to-date, MU is attempting to reclaim a foothold on its 10-week moving average, which had acted as support since May 2016. Of the 15 analysts following the stock, 12 rate it a "buy" or better.