Q2 STOCKS TO BUY

Domino's Pizza Stock Goes on Wild Ride After Earnings

Shorts are cheering GME's latest leg lower

Oct 8, 2019 at 1:45 PM
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The U.S. stock market is spiraling today, as U.S.-China trade anxiety spikes. Among individual stocks making notable moves are cloud platform name Asure Software Inc (NASDAQ:ASUR), pizza maker Domino's Pizza, Inc. (NYSE:DPZ), and video game retailer GameStop Corp. (NYSE:GME). Here's a closer look at what's moving the shares of ASUR, DPZ, and GME.

Asure Software Eyes Best Day Since 2012

Asure Software stock is trading near the top of the Nasdaq -- up 18.6% at $8.04, pacing for its biggest one-day gain since July 2012. Boosting the shares is news ASUR will sell its workplace management unit to FM:Systems in an asset and equity deal valued at $120 million.

Analysts are upbeat about the move, with Canaccord Genuity saying it views the transaction "quite favorably," and said "there's still notable upside" for ASUR stock, even with today's bull gap. Elsewhere, Lake Street Capital Markets thinks the deal "will be well-received by shareholders." Currently, all eight covering brokerage firms call Asure Software a "buy," and the average 12-month price target of $13.24 is a 64.5% premium to the security's present perch.

DPZ Stock Swings Higher on Cost-Cutting Plan

The shares of Domino's Pizza fell 6% earlier, after the pizza chain reported lower-than-expected third-quarter profit, revenue, and same-store sales growth. However, DPZ stock has since swung up 5.6% at $255.75, as Wall Street cheers the company's cost-cutting plan, which includes scaling back its investments by as much as $20 million.

DPZ options volume is running at an annual-high clip amid today's volatile session, and put traders once again have the upper hand. Around 18,000 puts have changed hands, compared to 15,000 calls. The weekly 10/11 230-strike put is most active, and it looks like new positions are being purchased here. If this is the case, traders expect Domino's Pizza stock to sink below $230 by expiration at the close this Friday, Oct. 11.

PlayStation, Toys 'R' Us Buzz Sinks GameStop

GameStop shares have dropped 3.8% to trade at $5.28, amid reports Sony (SNE) will release the next PlayStation model in the 2020 holiday season -- later than anticipated. Buzz about a Toys 'R' Us reboot are only strengthening the headwinds, putting GME stock on track for its second straight loss.

Looking closer at the charts, GME shares attempted to rebound off their Aug. 15 record low of $3.15, but the rally ran out of steam in the $5.60-$5.80 region -- home to the stock's early June bear gap and descending 120-day moving average.

Short sellers have been in the driver's seat during GameStop's 69% slide from its mid-January peak at $16.90. Short interest doubled in the Jan. 15-Sept. 15 reporting periods to 60.73 million shares. This represents a whopping 70% of GME's available float, or 7.9 times the stock's average daily trading volume.

 
 

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