2 Stocks Soaring After Earnings, and One Getting Crushed

By Emma Duncan / November 01, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are starting the month higher, thanks to an upbeat ADP payrolls report. Among the stocks making moves this morning are GPS company Garmin Ltd. (NASDAQ:GRMN), medical transport provider Envision Healthcare Corporation (NYSE:EVHC), and steel producer United States Steel Corporation (NYSE:X). Here's a closer look at what's moving shares of GRMN, EVHC, and X.

Garmin Reaches Fresh Highs After Earnings

Shares of Garmin are soaring after the GPS stock reported third-quarter earnings that were well above analysts' estimates. GRMN was last seen up 3.8% at $58.76, and earlier hit a new three-year high of $59.10. Garmin is nowup 21% on the year.

Over the past 10 weeks, options traders have preferred calls over puts on GRMN stock, per data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). These exchanges show the stock sporting a 50-day call/put volume ratio of 2.32, ranking in the 73rd percentile of its annual range.

Envision Tanks as Earnings Fall Short

Envision Healthcare stock is plummeting after the company reported third-quarter earnings that missed estimates and offered a disappointing fourth-quarter forecast. EVHC added that its board has decided to review a range of alternatives to enhance shareholder value. In response, Cantor Fitzgerald downgraded EVHC to "neutral" from "overweight," and cut its price target to $30 from $70. The healthcare stock was last seen down 36.1% at $27.23, after finding a fresh five-year low of $26.92 out of the gate.

If more brokerage firms follow Cantor Fitzgerald's lead, a round of downgrades could exacerbate EVHC's post-earnings sell-off. Of the 14 analysts following the stock, 13 sport "buy" or "strong buy" recommendations.

United States Steel Soars After Earnings Beat

United States Steel is moving higher after reporting a third-quarter earnings beat, and forecasting an impressive fourth quarter. X stock was last seen up 15.5% at $29.25, sporting a 64% gain year-over-year.

Options traders wereoptimistic just ahead of the steel stock's earnings report. Data from the ISE, CBOE, and PHLX shows X with a 10-day call/put volume ratio of 2.20, which ranks in the 70th percentile of its annual range. This suggests that calls were bought to open over puts at a faster-than-usual clip during the past two weeks.

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