8 Stocks Boosting Guidance, Seeing Rising Call Volume

|
 |  Includes: ADS, AEO, ANN, FUL, NWY, RBN, WLTW, WWW
by: Kapitall

The following is a list of companies that have raised EPS guidance over analyst estimates within the last month. Additionally these stocks have seen a recent decrease in the Put/Call ratio, which is based on open interest of option contracts.

In addition, the Put/Call ratios of these companies are at the lower end of their annual ranges.

With the number of call options growing rapidly relative to put option contracts, it appears options traders are getting more optimistic on these names. Do you agree? Full details below.

Options data sourced from Schaeffer's, earnings data sourced from Briefing.com, short float and performance data sourced from Finviz. (Please note: All changes in the Put/Call ratio occur between 1/25/11 - 2/7/11).

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.


The list has been sorted by the change in the Put/Call ratio.

1. AnnTaylor Stores Corp. (NYSE:ANN): Apparel Stores Industry. Market cap of $1.38B. Current Put/Call ratio at 0.34 vs. a previous ratio of 1.06 (-67.92% change). Guided Q4 to exceed $0.14 vs. estimate of $0.14. Short float at 12.32%, which implies a short ratio of 3 days. The stock has gained 62.45% over the last year.

2. American Eagle Outfitters, Inc. (NYSE:AEO): Apparel Stores Industry. Market cap of $2.91B. Current Put/Call ratio at 0.35 vs. a previous ratio of 0.66 (-46.97% change). Guided Q4 at the high end of $0.41-0.43 vs. estimate of $0.42. Short float at 6.63%, which implies a short ratio of 2 days. The stock has gained 0.34% over the last year.

3. Towers Watson & Co. (TW): Management Services Industry. Market cap of $4.22B. Current Put/Call ratio at 0.47 vs. a previous ratio of 0.79 (-40.51% change). Guided FY11 at $4.07-4.15 vs. estimate of $4.04. Short float at 2.3%, which implies a short ratio of 4.43 days. The stock has gained 32.07% over the last year.

4. Alliance Data Systems Corporation (NYSE:ADS): Credit Services Industry. Market cap of $3.98B. Current Put/Call ratio at 0.96 vs. a previous ratio of 1.59 (-39.62% change). Guided Q1 at $1.65 vs. estimate of $1.62. Short float at 33.8%, which implies a short ratio of 22.31 days. The stock has gained 38.35% over the last year.

5. Wolverine World Wide Inc. (NYSE:WWW): Apparel Footwear & Accessories Industry. Market cap of $1.71B. Current Put/Call ratio at 0.08 vs. a previous ratio of 0.12 (-33.33% change). Guided FY11 at $2.35-2.45 vs. estimate of $2.29. Short float at 3.91%, which implies a short ratio of 6.2 days. The stock has gained 47.69% over the last year.

6. Robbins & Myers Inc. (NYSE:RBN): Diversified Machinery Industry. Market cap of $1.38B. Current Put/Call ratio at 0.82 vs. a previous ratio of 0.94 (-12.77% change). Guided Q2 at $0.40-0.50 vs. estimate of $0.34. Guided FY11 at $1.85-2.05 vs. estimate of $1.60. Short float at 8.23%, which implies a short ratio of 5.2 days. The stock has gained 86.74% over the last year.

7. New York & Company Inc. (NYSE:NWY): Apparel Stores Industry. Market cap of $354.66M. Current Put/Call ratio at 0.15 vs. a previous ratio of 0.17 (-11.76% change). Guided Q4 at $0.15-0.19 vs. estimate of $0.08. Short float at 1.9%, which implies a short ratio of 4.37 days. The stock has gained 56.76% over the last year.

8. HB Fuller Co. (NYSE:FUL): Specialty Chemicals Industry. Market cap of $1.12B. Current Put/Call ratio at 0.38 vs. a previous ratio of 0.42 (-9.52% change). Guided FY11 at $1.75-1.85 vs. estimate of $1.70. Short float at 2.67%, which implies a short ratio of 4.63 days. The stock has gained 15.03% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.