Alexion finally making movesI've been adding to my Alexion position since December 9, when I posted my previous idea on this stock. The wait is finally paying off, as the stock has surged higher in the past couple days. Alexion is getting unusually bullish call activity today, and the interest is more than justified at this forward P/E of less than 10 and PEG ratio of less than 1.
Alexion next reports earnings on February 3, and there are reasons to think it may top Wall Street expectations, including a history of earnings beats and a Zack's ESP of 2.07%. The consensus EPS estimate this quarter is $2.53, but the most accurate estimate is $2.58.
Optionsactivity
JETS finally taking offAirline stocks have had a lot of bullish options interest for the last month or so, thanks to their attractive valuations (less than 10 P/E!) and strong earnings growth. However, the stocks have been unable to break out due to high fuel prices. With Iran conflict cooling and oil prices falling, the JETS ETF is finally gaining some momentum this week. Individual airline stocks such as JBLU and SAVE got upgrades yesterday, which should be good for the ETF's near-term performance.
Bullish call activity in Macy's todayMacy's looks pretty undervalued right now, with a current P/E of 5.33, a forward P/E of 6.28, and a dividend yield near 10%. The stock is getting unusual bullish call option activity today, with double the normal volume, and it looks to be trying to breakout above previous resistance. The risk here is that the company's earnings are currently expected to decline over the next two years. However, Macy's surprised analysts last quarter, and it recently got a small upward revision of its two-year forecast. More upward revisions may be coming, especially if it surprises again. The company next reports earnings on February 25.
