AutoZone Bounces After Earnings; The Latest Equifax Bombshell

By Josh Selway / September 19, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are eyeing a higher open ahead of today's Fed meeting. Among specific stocks in focus today are auto parts retailer AutoZone, Inc. (NYSE: AZO), cloud concern Synchronoss Technologies, Inc. (NASDAQ:SNCR), and credit agency Equifax Inc. (NYSE:EFX). Here's a closer look at what's moving shares of AZO, SNCR, and EFX.

AutoZone Bounces After Earnings

AutoZone stock is up 1.2% this morning at $570.50, thanks to the company's better-than-expected fiscal fourth-quarter earnings report. This is a change of pace for the shares, which have struggled over the past year, falling 23%. In fact, AZO hit a three-year low of $491.13 on July 20. This, and the fact the stock fell 11.8% after last quarter's report, likely explains why options traders were betting so bearishly ahead of the event. Specifically, the security has 10-day put/call volume ratio of 1.94 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), good enough to rank in the 94th annual percentile.

SNCR Stock Sinks After Siris Ditches All-Cash Deal

Shares of Synchronoss Technologies have shed 33.4% this morning to trade at $11.16, following news Siris Capital is no longer exploring an all-cash takeover of the company. Today's price action puts the equity in a year-over-year hole of 59%, after it traded sideways for almost three months. In the meantime, most analysts have been taking a wait-and-see approach. That is, four out of five covering brokerage firms have issued just a "hold" rating for SNCR.

News of Another Security Breach Hits Equifax Stock

Equifax stock is down another 2% this morning at $92.51, due to news the company experienced another security breach months before the more recent one that exposed the information of roughly 143 million Americans. With the company's CEO set to speak before Congress next month, analysts are slashing their outlooks on the shares. Just this morning, Deutsche Bank cut its price target to $115 from $160, and RBC lowered its price target to $113 from $154. As of last night's close, however, 10 of 14 covering brokerage firms still had "buy" or better ratings on the equity. EFX shares have given back almost 35% since the original data breach was announced.

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