3 Stocks Analysts Expect to Soar to Fresh Highs – Schaeffers Research (blog)

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Analysts are weighing in on TV streaming platform Netflix, Inc. (NASDAQ:NFLX), software solutions provider HP Inc (NASDAQ:HPQ), and car maker General Motors Company (NYSE:GM). Here’s a quick roundup of today’s bullish brokerage notes on shares of NFLX, HPQ, and GM.

Netflix Scores Price-Target Hikes Ahead of Earnings, Breaks $200

Netflix stock is trading up 2.3% at $200.33, earlier hitting a record high of $200.82, after Citigroup, J.P. Morgan Securities, and Goldman Sachs raised their price targets to $205, $225, and $235, respectively. The price-target hikes come before the online TV streaming company is scheduled to report earnings after the close on Monday.

Netflix stock has roughly doubled in the past 12 months. Still, more than one-third of the analysts following the FAANG stock rate it a “hold” or worse, leaving additional room for upgrades in the near term.

HP Stock Hits 6-Year High on Strong Forecast

HP stock is jumping today after the company last night raised its full-year outlook. The equity was last seen trading up 5.3% at $21.50, after hitting a six-year high of $21.78 earlier. Citigroup and Mizuho both raised their price targets to $23 in response. Meanwhile, Morgan Stanley boosted its price target to $25 from $23 — territory the security hasn’t visited in 17 years.

HPQ shares have been on a steady climb, gaining roughly 17% in the past three months. Surprisingly enough, however, options traders on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been upping the bearish ante. The stock’s 10-day put/call volume ratio of 1.15 ranks in the 87th annual percentile. In other words, options traders have been buying to open puts relative to calls at an accelerated clip in recent weeks.

Analyst Expects General Motors to Drive to More Record Highs

An upgrade to “overweight” from “equal weight,” paired with a price-target hike to $55 from $41 is driving General Motors stock up 0.5% to trade at $45.13, earlier hitting another record peak of $45.60. Barclays, which issued both the upgrade and price-target hike, said the car maker is more of an “evolving mammal than the dying dinosaur its valuation implies.”

GM shares have taken off in the past three months, tacking on roughly 25%, thanks to the car maker’s involvement in the self-driving car business and competitor Tesla’s production struggles. Now looks like an opportune time to buy near-term options, too, as evidenced by the stock’s Schaeffer’s Volatility Index (SVI) of 18%, which stands high than just 15% of all other reading from the past year. Simply put, near-term options traders are pricing in relatively low volatility expectations.

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