Q2 STOCKS TO BUY

New Age Beverages Stock Surge Results In Heavy Options Trading

Most AEO stock analysts have remained bearish

Oct 15, 2018 at 1:44 PM
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The Dow has traded on both sides of breakeven today, while tech stocks struggle. Three stocks in particular making notable moves are healthy drink specialist New Age Beverages Corp (NASDAQ:NBEV), gene therapy concern Krystal Biotech Inc (NASDAQ:KRYS), and retailer American Eagle Outfitters (NYSE:AEO). Below, we'll take a closer look at what's moving shares of NBEV, KRYS, and AEO.

NBEV Options Traders React to Sharp Stock Move

NBEV stock is spiking 13.4% to $7.02, following news the company has named Gregory Gould its new chief financial officer (CFO). Traders could also be targeting New Age Beverages ahead of the legalization of recreational weed in Canada this Wednesday, Oct. 17, since the company recently released a cannabis-derived drink. This continues a recent volatile stretch for the equity, which traded as high as $9.99 back on Sept. 21.

Meanwhile, call options are popular today, with the October 7 and November 8 strikes leading the way. Anyone buying to open contracts here would be betting on more upside from NBEV in the coming weeks.

Krystal Biotech Stock Lives Up to Bullish Billing

Positive interim trial results for the company's gene therapy candidate KB103 has KRYS stock up 31.1% at $21.16. The stock -- which only began trading publicly just over a year ago -- earlier hit an all-time high of $21.90, and has more than doubled year-over-year.

H.C. Wainwright and Cantor Fitzgerald responded with upwardly revised price targets of $35.50 and $35, respectively. As such, Krystal Biotech's average 12-month price target is $37, with all five covering analysts handing out "buy" or "strong buy" ratings.

AEO Shares Test 200-Day After Bull Note

Wedbush this morning upgraded AEO stock to "outperform" from "neutral," based on its belief the company is set for a strong holiday season, adding it sees upside to $29. The shares peaked just below $30 back in August, but have since pulled back below the 200-day moving average, which acted as a ceiling earlier today. At last check, American Eagle was up 0.5% at $21.38.

But even though the security sports a 13.7% year-to-date lead, most analysts are bearish. There are six "strong buy" ratings, but they're outnumbered by seven "hold" or "strong sell" recommendations. At the same time, the consensus 12-month price target is well overhead at $26.27.

 

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