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PreMarket Prep Recap: Fitbit, Exact Sciences Headlines; US Steel Downgrade 'A Bit Late To The Party'

PreMarket Prep Recap: Fitbit, Exact Sciences Headlines; US Steel Downgrade 'A Bit Late To The Party'

After a quiet weekend on the macro news front that was preceded by a less-than-eventful quadruple expiration, the PreMarket Prep crew dedicated much of Monday's show to analyst rating changes. 

Fitbit, Exact Sciences In The News 

Fitbit Inc (NYSE: FIT) had a nice Friday after it was revealed the company was in talks about the possibility of a sale.

As usual, when stocks are in the gutter and make these types of announcements, there is a sympathetic pop, which Fitbit had Friday.

Investors were alerted than unless Friday's high was breached ($4.52), the issue may drift back to its major support at the $3.70 level.

With no further announcements made regarding a possible sale, the issue has managed to stay green for Monday's session, but has not come close to Friday's high.

The other notable news stock discussed on Monday's show was Exact Sciences Corporation (NASDAQ: EXAS). The equity traded sharply higher after the company received FDA approval for Cologuard, a colorectal screening test for cancer. 

After its retreat from all-time-highs over the last few weeks, it was anticipated Exact Sciences would find some sellers in the form of investors looking to take profits or minimize losses.

It did rally off the open, but sellers came in at $113 area and nudged the issue to $107.56.

The stock was trading slightly positive at $104.04 at the time of publication Monday. 

Analysts Change US Steel, Chewy Ratings 

A surprise ratings change came from Nomura, which upgraded Chewy Inc (NYSE: CHWY) from Neutral to Buy and raised the price price target from $32 to $36.

It was viewed as a bold move, since the issue has done nothing but go down since its IPO in June. Friday's high ($27.81) was cited as a potential upside target, and the next daily resistance point came in a Thursday's high of $28.69. So far, it has surpassed Friday's high and is attempting to trade in the $28 handle.

The other notable ratings change came from JPMorgan, which added to the misery of longs in the steel sector with a downgrade of United States Steel Corporation (NYSE: X) from Overweight to Neutral and a price target lowered from $26 to $14.

The rating change is a "bit late the party," PreMarket Prep co-host Dennis Dick said. 

Macquarie downgraded the issue last week, and seven of the eight ratings changes for U.S. Steel since April have been downgrades, with the other being a price target reduction.

A Preview Of The Week's Guests 

On Tuesday's show, Nic Chahine, the author of "Create Income With Options," will join the show at 8:35 AM EST and share his fundamental and technical views of the market.

Anne-Marie Baiynd, the author and CEO of the, will bring her cheerful demeanor to the show Wednesday and provide technical set-ups in the indexes, gold and oil.

On Thursday, Tim Melvin, the author of “Banking On Profit” will help to identify some value in the banking sector. 

Phil Davis, the founder of Phil's Stock World, joins Friday's program with his current stock and option strategies.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunesGoogle PlaySoundcloudStitcher and Tunein.

Related Links: 

PreMarket Prep Recap: Buybacks Add Fuel To Rally Ahead Of Quadruple Witch Expiration

PreMarket Prep Recap: A Trio Of Earnings Debacles, Facebook Pulls A Fast One On Roku

Photo courtesy of Fitbit. 

Latest Ratings for CHWY

Oct 2020JefferiesUpgradesHoldBuy
Sep 2020B of A SecuritiesMaintainsBuy
Sep 2020Credit SuisseMaintainsOutperform

View More Analyst Ratings for CHWY
View the Latest Analyst Ratings


Related Articles (FIT + CHWY)

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