Twitter Sinks With Sector Peers; Plus, Under Armour's Rare Upgrade

By Katie Coburn / September 25, 2017 / www.schaeffersresearch.com / Article Link

U.S. stocks are lower this afternoon, after North Korea says the U.S. declared war. Among the names in the spotlight today are sports apparel retailer Under Armour Inc (NYSE:UAA), car parts distributor Genuine Parts Company (NYSE:GPC), and social media giant Twitter Inc (NYSE:TWTR). Here's a quick look at what is moving shares of UAA, GPC, and TWTR.

Under Armour Stock Scores Rare Upgrade

Under Armour stock is up 3.1% to trade at $16.91, after KeyBanc upgraded the sports apparel stock to "overweight" from "sector weight," citing the company's new appointment of COO Patrik Frisk and its shift in focus to improving its financial performance. The brokerage firm wasn't as optimistic about Under Armour's rival, VF Corp stock, which it downgraded to "sector weight."

Today's jump in UAA shares ranks the stock among the best on the S&P 500 Index (SPX). Not all analysts favor Under Armour stock, however. Of the 34 analysts following UAA, 85% rate it a "hold" or worse. UAA stock, in fact, has not fared well in 2017. Down 42% year-to-date, the stock hit a four-year low of $15.92 on Sept. 1, and has since seen tough resistance from its 40-day moving average. A gain today would effectively snap UAA's seven-day losing streak.

Genuine Parts Looks to Buy Alliance Automotive Group for $2B

Joining UAA stock among the best on the SPX is Genuine Parts stock, last seen trading 6.4% higher at $93.59. Driving the car parts stock higher is news that the company entered a definitive agreement to acquire Europe's Alliance Automotive Group for $2 billion. GPC shares are now poised to close above their 200-day moving average for the first time since June, and a short squeeze could help fuel the stock's fire. Short interest on GPC grew 11.6% during the most recent reporting period to 6.48 millionshares. At the equity's average daily trading volume, it would take nearly two weeks to buy back all these shorted shares.

Twitter Stock Falls With Facebook Amid Tech Sell-off

Swimming in the red today is Twitter stock, last seen down 4% at $16.91 amid a broad sell-off in tech stocks, including sector peers Apple -- continuing its poor run post-iPhone 8 launch -- and Facebook -- down on news of CEO Mark Zuckerberg's scrapped plan for a new class of stock. Twitter shares have fallen 25.5% during the past 12 months, and recently backed down from the $18.50 region -- where TWTR was trading before a mid-July bull gap. The equity's average analyst price target is docked at $15.91 -- representing a 6% drop from current levels. What's more, all 24 analysts following the stock rate it a "hold" or worse, with not one "buy" endorsement in sight.

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