Schaeffer's Top Stock Picks for '25

CLF, EYEN Stocks Have Huge Sessions

Vale SA slashed its iron ore output

Managing Editor
Jan 30, 2019 at 2:04 PM
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Stocks are confidently higher today, as investors await the latest Fed statement later today. Mining stock Cleveland-Cliffs Inc (NYSE:CLF) and pharma stock Eyenovia Inc (NASDAQ:EYEN) are soaring, while telecom giant AT&T (NYSE:T) is struggling. Below, we'll take a look at what's moving the shares of CLF, EYEN, and T.

Soaring Iron Ore Prices Power CLF Surge

Near the top of the New York Stock Exchange (NYSE) is Cleveland-Cliffs stock, up 16.6% to trade at $10.72. Fellow mining company Vale SA (VALE) earlier today announced an iron output cut in the wake of the Brazilian mining disaster. This has sent the prices of iron ore soaring and mining stocks sharply higher. CLF is on track for its best day since February 2017, and brings its year-to-date gain up to 39%. 

A short squeeze could keep the wind at CLF's back. Short interest fell 1% in the last two reporting periods to 48.54 million shares. However, this represents 16.5% of the security's total available float, and nearly 6.4 times the average daily trading volume.

There could also be some pessimism to be unwound in the options pits. Its Schaeffer's put/call open interest ratio (SOIR) of 1.01 is in the 100th percentile of its annual range, so short-term option players have rarely been more put-heavy in the past 12 months.

Upbeat Drug Data Fueling EYEN's Huge Day

Eyenovia stock is up 10.6% at $2.91, and earlier traded as high as $4.20, after the pharma company's treatment for eye dilation met its main goals in a late-stage study. Despite the burst today -- on track for its best single-day session ever -- EYEN still has shed roughly 70% year-over-year. 

Analysts have remained bullish. All three of the brokerages in coverage rate EYEN a "buy" or better, and the stock's consensus 12-month price target of $20.67 is well into record-high territory.

Revenue Miss Has T Breaching Key Trendline

Earlier today, AT&T reported a fourth-quarter revenue miss, as well as fewer-than-expected new subscribers for the quarter. This has T stock down 4.6% to trade at $29.28. The shares are now breaching their 40-day moving average for the first time in 2019, an area that coincides with the $30 level. 

The subpar quarterly report could prompt a shift in analyst attention. Currently, 11 out of 19 brokerages rate T a "buy" or better, with zero "sells" on the books. In addition, the security's consensus 12-month price target of $34.32 sits in territory not seen since an early October bear gap.

 
 

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