Q2 STOCKS TO BUY

Earnings Prediction Boosts Airline Stock

CODA reported a 92% year-over-year jump in sales for its second-quarter

Digital Content Manager
Jun 13, 2019 at 2:54 PM
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While the Dow recovers some of yesterday's losses, several other stocks are seeing a move higher, too. That includes travelname American Airlines Group Inc (NASDAQ:AAL), sporting goods name Callaway Golf Co (NYSE:ELY), and sonar developer Coda Octopus Group, Inc (NASDAQ:CODA). Here's what's moving the shares of AAL. ELY, CODA.

J.P. Morgan Prediction Gives American Airlines Stock Wings

AAL stock is near the top of the S&P after J.P. Morgan said rising fares and increasing demand could bode well for the airline sector during the upcoming earning season. The stock has surged 6.8% to $33.22, trading directly beneath its 160-day moving average, which has served as a long-term area of pressure on the charts. 

Today's move closely follows the stock's almost three-year bottom at $27.02 in early June. The equity has gained back nearly 23% since then and is set to close back atop its year-to-date breakeven level. AAL's dip has certainly attracted some bearish attention, though. The security sports a 10-day put/call volume ratio of 0.54 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 93rd percentile of its annual range, which shows put buying has been more active than normal.

Options Bulls Flock to Surging ELY Stock 

Activist investor Jana Partners just announced its 9.2% stake in golf equipment name Callaway Golf and shares of the stock are surging in response. The stock hit a six-month high of $18.50 earlier -- just barely closing a bear gap that sent ELY spiraling in November -- and is now trading up 14% at $18.13. Now, not only is the security set for its best day since 2013, it's also trading well atop its 160-day moving average for the first time since mid-November. 

Jana Partner's newly announced stake has options bulls flocking to the stock. So far, roughly 4,269 call contracts have crossed the tape, 24 times what's usually seen at this point. Most of this action is surrounding the August 18 call, with the brunt of activity on the bid side. 

CODA Stock Tops Nasdaq on Earnings Beat

CODA is celebrating a major win today after unveiling its second-quarter earnings before the bell today. The firm announced an earnings and revenue beat, as well as a 92% year-over-year surge in sales. The equity is near the top of the Nasdaq today, and clocked a three-week high of $14.85 before scaling back. The equity is trading 39% higher at $13.50, at last check -- set to settle atop its 20-day moving average for the first time since its spike in early May. 

Looking at the charts, CODA shares recently pulled back from their record-high of $19.20, but found support atop their 120-day moving average. Despite the pullback, the equity was still up over 62% year-to-date by yesterday's close. While some pressure at the $11 region put a cap on attempts to rally higher in recent weeks, today's pop put the stock back near its late-May levels. 

 
 

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