PetSmart, Inc. (NASDAQ:PETM) currently has the dubious distinction of being one of the most disliked large-cap stocks on the market, with investors having a collective price target on the stock 9% below its current value. CNBC’s Dominic Chu discussed some of these stocks earlier today, which also included Under Armour Inc (NYSE:UA), and Alcoa Inc (NYSE:AA).
In the case of PetSmart, Inc. (NASDAQ:PETM), which is trading at $71.18 in mid-afternoon trading today, the stock was hovering around that price target for much of the year before the stock plummeted in late May on the news that the company’s doig and cat treats had led to illnesses in China. The stock rebounded a month and a half later and soared above the price targets on news that PetSmart, Inc. (NASDAQ:PETM) would seek a buyer in a move designed to “maximize value for shareholders”. The stock has remained around $70.00 ever since.
Under Armour Inc (NYSE:UA) was the first stock discussed by Chu, and is perhaps a surprise entrant on the list, given glowing reports on the company’s direction by many analysts, including Jim Cramer, who named it one of his top fantasy picks of the year last week.
An important point Chu makes when discussing Under Armour Inc (NYSE:UA) is that the collective price targets may simply not have kept up with how rapidly the stock has risen, and likewise, the perception of the stock and what it can do. Under Armour Inc (NYSE:UA) is up over 66% year-to-date to blow past those price targets. It remains to be seen whether analysts really are content with their prices as they are, or whether their price target will trend upwards in the coming months.
Lastly was Alcoa Inc (NYSE:AA). Despite trading at just $17.02 in afternoon trading, the stock is up over 60% on the year, and like Under Armour, has blown past its consensus target price of $16.00. Short interest in Alcoa Inc (NYSE:AA) jumped 5.7% in August , hinting that other investors feel the stock has reached its peak and may be in for a regression.