3 Stocks Surging After Earnings

By Katie Coburn / October 31, 2017 / www.schaeffersresearch.com / Article Link

With third-quarter earnings season in full swing, analysts are weighing in on biotech EXACT Sciences Corporation (NASDAQ:EXAS), food and beverage company Mondelez International Inc (NASDAQ:MDLZ), and machinery stock Cognex Corporation (NASDAQ:CGNX). Here's a quick roundup of today's bullish brokerage notes on shares of EXAS, MDLZ, and CGNX following the companies' earnings reports.

EXACT Sciences Stock Soars to Record High on Earnings, Revenue Beat

EXACT Sciences stock is up 9.1% to trade at $54.67, and hit a record high of $55.25 earlier, after the company reported a slimmer-than-expected third-quarter loss and quarterly revenue that topped forecasts, thanks to increased demand for its Cologuard cancer screening test. The firm also boosted its full-year revenue forecast. As such, at least four brokerage firms raised their price targets, including Leerink to $63 from $50.

EXAS shares have quadrupled this year, with pullbacks contained by their trusty 40-day moving average. Despite the equity's impressive price action, near-term options traders have rarely been more put-heavy, as evidenced by the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.08 -- good enough to rank in the 99th annual percentile.

Strong Earnings Reverse Mondelez Stock's Decline

Shares of Mondelez International are also trading higher this morning, last seen up 6.9% at $42.01 -- testing its 80-day moving average for the first time in four months -- after the Oreo maker reported third-quarter earnings and revenue beats. As a result, Deutsche Bank and Credit Suisse upped their respective price targets to $48, though Susquehanna cut its to $45 from $46.

MDLZ shares have been on a steady decline since mid-June, and touched an annual low of $39.19 yesterday.Despite the stock's recent decline, the majority of analysts following the security rate it a "buy" or better, with not a single "sell" in sight.

Cognex Stock Jumps to New High After Impressive Earnings

A third stock surging on better-than-expected earnings is Cognex, which touched a record high of $129.89 earlier and was last seen trading 3.4% higher at $127.88. Following the company's earnings beat, J.P. Morgan Securities and Canaccord Genuity boosted their price targets to $125 from $110, and to $120 from $95, respectively.

Like EXAS, Cognex stock has exploded in 2017, more than doubling in value. Part of this upside is likely due to shorts abandoning ship. Short interest on CGNX dropped 15.6% during the two most recent reporting periods alone to2.13 million shares. However, it would still take nearly four sessions to cover these remaining bearish bets, at the stock's average pace of trading.

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