By Patrick Martin / October 17, 2017 / www.schaeffersresearch.com /
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The Dow is modestly higher today, and just topped the 23,000 level for the first time ever. Among specific stocks on the move are educational product name Pearson plc (NYSE:PSO), solar power firm TerraForm Power Inc (NASDAQ:TERP), and water technology expert Badger Meter, Inc. (NYSE:BMI). Here's a quick look at what is moving shares of PSO, TERP, and BMI.
Pearson Stock Surging After Upbeat Profit Forecast
Pearson stock is up 6.8% to trade at $8.76, among the best on the New York Stock Exchange (NYSE), after the education name lifted its full-year
profit forecast for 2017. The London-based publisher also said its North American business component has improved.
It's a much needed boost for PSO stock, which has shed more than 12% year-to-date. However, the rally is running out of steam near $8.80 -- home to the stock's mid-July pre-bear gap highs, and an area that contained Pearson in late July and early August.
Analysts, meanwhile, are divided over PSO. Exactly 40% of the brokerages covering Pearson stock rate it a "strong buy," while the other 60% rate it a "hold" or "sell."
TerraForm Power Stock Powered By Strong Revenue Guidance
TerraForm Power is the second hottest stock on the Nasdaq Composite today, up 35.7% to trade at $13.05, after the company a strong pro-forma revenue forecast. The news has the solar stock on track for its best daily percentage gain since the 2014 initial public offering (IPO), and earlier hit a 23-month high of $13.35.
A short squeeze could give TERP stock some more life. Short interest decreased by nearly 5% during the last reporting period, but the 6.41 million shares sold short still represents a healthy 10% of the stock's total available float. At TERP's average daily trading volume, it would take a whopping 17 days for shorts to fully cover their positions.
Badger Meter Stock Sinks After Earnings Disappointment
Badger Meter reported third-quarter earnings that came in below the consensus estimate, as well as a fifth straight quarterly revenue miss. In reaction, BMI stock is down 13.5% to trade at $43.95, the worst performer on the NYSE today and below its 50-day moving average-- which served as support in July -- for the first time since a late-April bull gap.
Most analysts are cautious toward BMI stock, with four of five rating it a tepid "hold." However, the equity's average 12-month price-target of $49.50 represents an 11.5% premium to the stock's current perch. This suggests price-target cuts may be on the horizon.