Levi Strauss & Co (NYSE:LEVI) stock is surging today, last seen up 10.8% to trade at $21.83, after the retailer reported a first-quarter earnings and revenue beat. The company noted strong direct-to-consumer sales, which made up half of its revenue, and also hiked its full-year outlook. UBS hiked its price target to $34 from $33 in response.
Should these gains hold, LEVI will notch its biggest single-day percentage gain since July, as well as its third-straight win. The stock has erased its year-to-date deficit as it tests a ceiling at $18, an area that thwarted several rallies since December. Year over year, the shares are now 79% higher.
A short squeeze could keep tailwinds blowing for LEVI. While short interest dropped 23.8% in the last two reporting periods, the 10.22 million shares sold short still make up 11.3% of the equity's available float.
Options bulls are targeting the security today, with 3,213 calls exchanged so far -- 27 times the intraday average amount -- compared to a meager 595 puts. The most popular contract is the weekly 4/10 22.50-stirke call.
