Spirit Airlines Incorporated (NYSE:SAVE) just scored an upgrade from J.P. Morgan Securities to "overweight" from "neutral," and s a price-target hike to $30 from $24. The analyst in question noted a merger deal with JetBlue Airways (JBLU) is becoming more likely than one with Frontier (ULCC), after the former upped its offer. At last check, the equity is up 2% to trade at $22.75.
Analysts were split towards Spirit Airlines stock coming into today, with five calling it a "hold," while five said "strong buy." This leaves plenty of room for additional upgrades moving forward. Meanwhile, short interest added 14.4% in two most recent reporting periods, with the 9.50 million shares sold short now accounting for 8.8% of SAVE's available float.
On the charts, the security has bounced off a May 12, more than one-year low of $15.94, but this rally lost steam at the $23 level. Shares have broken through pressure from the 60-day moving average this week, and are today eyeing a fifth-straight close above this trendline. Year-to-date, though, SAVE is down 33.3%.
Options bulls are also chiming in, with 2,757 calls across the tape so far, which is double the intraday average, compared to just 367 puts. Most popular is the July 25 call, followed by the weekly 6/10 22.50-strike. New positions are being opened at the latter, which will expire at today's close.
7 Risk-Off Stocks to Buy as Inflation Remains at Record LevelsInflation has gone from a transitory problem that would take care of itself to an existential threat that is moving the Federal Reserve to take swift, aggressive action. In January 2022, the Consumer Price Index (CPI) showed inflation in the United States was at its highest level since 1982.
And the market is reacting predictably with what appears to be a shift from risk-on to risk-off assets. This is having a negative effect on many stocks, particularly in the tech sector, that are no longer justifying their extended valuations.
But investors are also seeing a drop in cryptocurrency prices and other speculative assets. This may be a short-term phenomenon, but if you’re an investor looking at how to make money in 2022; it’s time to get a little defensive. But playing defense doesn’t mean accepting mediocre growth. It simply means moving into stocks and sectors that are likely to benefit from high inflation and rising interest rates.
That’s the focus of this special presentation. We invite you to consider these seven risk-off stocks that look like strong candidates to increase in value even as inflation remains high.
View the "7 Risk-Off Stocks to Buy as Inflation Remains at Record Levels".
