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2 Big Volume Stocks — and Why They're Moving

Two companies, KLA-Tencor and Dr Pepper Snapple, are seeing their shares moving at levels not reached in years — apparently, for different reasons.

Analysts Patrick Ho of Stifel Nicolaus and David Silver of Wall Street Strategies offered their market intelligence.

Ho pointed to KLA-Tencor's "lack of direction" as a concern, as well as inventory saturation:

"Investors are wondering where the company can go from here," Ho mused.

Is it an indication of trouble in the sector as a whole? No, he believes: "The overall chip environment remains relatively healthy."

  • KLA-Tencor shares now:

The beverage sector, on the other hand, seems to be lifting all boats — especially Dr Pepper Snapple.

"They're really growing," said Silver. "They're seeing strong volumes and they're coming off a much smaller base than Pepsi or Coke. It's really only [penetrated] the North American markets right now. They're really growing a lot in Latin America."

"And they're seeing growth in the U.S. — which Coke and Pepsi aren't — for carbonated drinks."

He has "buy" ratings on all three companies.

Silver's Price Targets:

Dr Pepper Snapple $36

PepsiCo $75

Coca-Cola $65

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Disclosures:

KLA-Tencor has been a client of Ho's employer Stifel Nicolaus within the past 12 months.

Disclosure information was not available for Silver or his company.

Disclaimer