Earnings Season Highlights

Refresh your browser for the latest updates!
A collection of noteworthy post-earnings reactions
Published on Jun 10, 2022 at 8:00 AM
Updated on Jun 10, 2022 at 2:44 PM
  • Buzz Stocks

Pride Month 2022: A Spotlight on Signet Jewelers

by Schaeffer's Digital Content Team

As a tribute to Pride Month 2022, we are taking a closer look at the publicly listed companies (on the NYSE or Nasdaq) who taking major initiative to be an ally both within their organizations and in their customer-facing elements. We have seen a surge of ESG (Environmental, Social, and Governance) investing, with traders considering these non-financial factors when determining which stocks to add to their portfolios. 

One big name stood out as we began working through these LGBTQ+ initiatives and that is Signet Jewelers Ltd. (NYSE:SIG). As we'll list the customer-facing efforts that Signet Jewelers is making through its portfolio of brands, know that Signet Jewelers themselves have supported the LGBTQ+ community beyond Pride month. Click here for more information on their workplace actions, community involvement, and donations. 

This year for Pride, Signet owned Kay Jewelers is continuing to celebrate all love and Every Kiss! In support of Pride month, Kay Jewelers has made a contribution to the Human Rights Campaign – one of the largest LGBTQ+ advocacy groups – to further their mission to achieve equality and acceptance. They are also working with various influencers to share their favorite kisses throughout June and encouraging their followers to do the same. Among these influencers are Jaymes Vaughan & Jonathan Bennett, Kirstie & Christine, Mason Leigh, and more! Click here for Kay’s Pride page where you’ll find more information.

In 2020, Kay Jewelers partnered with Jaymes Vaughan for his proposal to Jonathan Bennett (known for his character as Aaron Samuels in Mean Girls) where he created a custom same-sex engagement/wedding band. After the engagement, Kay was overwhelmed with requests to purchase the ring and/or custom design similar wedding bands for other same-sex couples – so they partnered again in 2021 to release a replica of their ring at Kay, titled “Our Ring by Jaymes + Jonathan”.

As for Zales -- another unit of Signet -- this year they launched new PRIDE styles with Vera Wang Love that feature colored precious gemstones to represent the pride flag. Zales also released pronoun jewelry supporting consumers that want to express themselves through style. On the social media front, Zales wants to encourage people everywhere to let their true colors shine and share their PRIDE story by posting a video or photo with their rainbow shine filter and the hashtag #ZalesPride.

Signet Jewelers released earnings on Thursday, June 9 before the bell. SIG walked into the earnings confessional for Q4 of fiscal 2022 to report a revenue win of $2.81 billion -- about $40 million more than Wall Street anticipated -- while same-store sales grew over 23% year-over-year. In addition, the retailer raised its quarterly dividend by 11% to 20 cents per share, and offered a strong 2023 outlook, despite inflationary pressures and suspended business activities with Russia.

This current quarter's earnings results were very well-received, with Signet stock last seen up 8.3% to trade at $67.41. The jeweler posted a top- and bottom-line beat for its first quarter, noting that demand among more affluent shoppers has remained strong, despite the inflationary issues weighing on most shoppers right now. Signet did add that it saw some "softening within lower price points" because of this inflation, however. 

SIG traded at its highest level since May 13 yesterday. And though it still suffers a 23.5% year-to-date deficit, the equity has found recent support at the 10-day moving average, and settled  above its 40-day moving average for the first time since late April. 

sig jun 9

Thank you to Signet Jewelers for providing these insights.

Published on Jun 10, 2022 at 12:34 PM
Updated on Jun 10, 2022 at 12:35 PM
  • Buzz Stocks

Is Align Stock Truly Worth its High Valuation Today?

by Schaeffer's Digital Content Team
Published on Jun 10, 2022 at 12:10 PM
  • Midday Market Check

Wall Street is looking to end the week on a dismal note, after a hotter-than-expected consumer price index (CPI) reading for May sent stocks spiraling. The CPI surged to its highest level since 1981, surging 8.6% year-over-year -- topping expectations -- and 6% excluding food and energy prices. The report also sent the 2-year Treasury yield above 2.9%.

In response, the Dow Jones Industrial Average (DJI) has shed 700 points by the midway mark, while the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are swimming in red ink as well, with the latter down over 3% this afternoon. All three indexes are headed for steep weekly losses as well.

Continue reading for more on today's market, including: 

  • Why Goldman Sachs thinks Netflix stock is a "sell."
  • Another tech stock getting hit with a downgrade today. 
  • Plus, AAL puts pop after lawsuit update; COGT clears key trendline; and FULC hits record low.

midday sttats jun 10

There's an unusual amount of options activity surrounding American Airlines Group Inc (NASDAQ:AAL) today, with bearish volume running at double the intraday average. So far, 61,000 calls and 87,000 puts have been traded. The most popular contract is the August 12 put, followed by the weekly 6/10 16-strike call, with positions being opened at the latter. AAL was last seen down 4.1% to trade at $14.83, after a U.S. judge said an antitrust lawsuit against the company and sector peer JetBlue (JBLU) is set to move forward, with the trial set for Sept. 26. Red-hot inflation data also weighed on travel stocks.

One of the best stocks on the Nasdaq today is Cogent Biosciences Inc (NASDAQ:COGT), last seen up 117.1% at $10.77. The company announced its experimental drug bezuclastinib has "rapid, robust" efficacy in a recent trial, lowering levels of an enzyme linked to systemic mastocytosis by 50% or more. The stock is now up 15.9% year-to-date, with today's surge setting COGT on track to close above the 30-day moving average for the first time since April 22. 

cogt june 10

Fulcrum Therapeutics Inc (NASDAQ:FULC), meanwhile, is one of the worst performing stocks on the Nasdaq. The security is down 43.5% at $4.57 at last check, after posting proof-of-concept for its FTX-6058 treatment in sickle cell disease, based on data from its ongoing phase 1B trial. Though the treatment was reportedly well-tolerated, H.C. Wainwright still stepped in with a price-target cut to $20 from $40. The equity hit a record low of $3.21 earlier, and now suffers a 74.4% year-to-date loss. 

Published on Jun 10, 2022 at 11:50 AM
  • Buzz Stocks

Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks this week, and look ahead to how the cannabis industry will continue to develop in 2022.

Here is a quick roundup of major cannabis stock news this week:

Kicking off the week on a high note, Village Farms International, Inc. (NASDAQ:VFF) was named by Corporate Knights on its list of Future 50: The Fastest Growing Sustainable Companies in Canada. VFF sports the highest annual increase in clean revenue of more than 6,000 companies who were considered for the list. According to Village Farms, "We are firm believers that what's good for the earth is good for our business, good for our employees, and good for our stakeholders." Village Farms stock is currently trading down 55% year-to-date.

High Tide Inc. (NASDAQ:HITI) opened its 126th recreational cannabis store in Canada with its Canna Cabana branding in Saskatoon, Saskatchewan on Monday. High Tide stock price has dropped nearly 70% over the past year.

In a report issued to investors on Wednesday, Canopy Growth (NASDAQ:CGC) was downgraded by the covering analysts at BMO Capital Markets from a “market perform” rating to an “underperform” rating. Canopy Growth stock is down nearly 85% year-over-year.

The Scotts Miracle-Gro Company (NYSE:SMG) released reduced guidance for the remainder of fiscal 2022 early on Wednesday. Earnings are now expected to be between $4.50-$5.00 per share and consumer sales are expected to drop 4-6%. Specifically to the hydroponics sector, Hawthorne, SMG expects a decline of 40-45% year-over-year for fiscal 2022. According to SMG, “Obviously, we are focused on implementing aggressive plans to improve cash flow, reduce debt, and return leverage to our target levels as quickly as possible.” Scotts Miracle-Gro stock plunged over 11% pre-market on the news and SMG is currently trading down nearly 45% year-to-date.

Neptune Wellness Solutions Inc. (NASDAQ:NEPT) is officially exiting the cannabis business according to Wednesday's press release. NEPT launched a new strategic plan focused on consumer packaged goods (CPG), complete with plans to divest in the company's cannabis business by selling Mood Ring and PanHash brands and terminating 50% of employees. According to Neptune Wellness Solutions, "This is the final stage of our transition to a pure play, purpose driven consumer packaged goods company. This strategic divestiture greatly simplifies our overall structure, enabling us to hyper-focus on those areas of the business we believe are best positioned for profitability and growth." Neptune Wellness stock price is down more than 90% over the past year.

Cantourage GmbH and Clever Leaves Holdings Inc. (NASDAQ:CLVR) announced on Wednesday an expansion to their preexisting strategic partnership designed for distributing medical marijuana in Germany's pharmaceutical cannabis market. After a successful launch of Clever Leaves' IQANNA No 7' flower, Cantourage and Clever Leaves launched 'IQANNA No 10'. The new product is cultivated at a CLVR facility in Portugal and then processed by Cantourage. Clever Leaves stock price has tanked 89% year-over-year.

On Thursday, BayMedica LLC, a wholly-owned subsidiary of InMed Pharmaceuticals Inc. (NASDAQ:INM), announced the launch of a rare cannabinoid delta 9-dominant tetrahydrocannabivarin. This cannabinoid is a non-intoxicating cannabinoid. According to INM, “THCV is one of the few rare cannabinoids that has been researched in early clinical trials for various therapeutic effects, fueling significant interest by end-product manufacturers and consumers alike. As this market continues to mature, we are well positioned to be a leading supplier of rare cannabinoids to the health and wellness industry. We currently have several high-value, rare cannabinoids in various stages of commercial development and will continue to expand our cannabinoid portfolio over the coming years”. InMed stock is currently down approximately 50% year-to-date.

Published on Jun 10, 2022 at 11:43 AM
  • Buzz Stocks
Published on Jun 10, 2022 at 10:50 AM
Updated on Jun 10, 2022 at 10:54 AM
  • Intraday Option Activity
  • Buzz Stocks
Options bulls are 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.
Published on Jun 10, 2022 at 10:12 AM
  • Buzz Stocks

Goldman Sachs downgraded Roblox Corp (NYSE:RBLX) to "sell" from "neutral" this morning, sending the shares down 5.3% to trade at $28.88 at last glance. The firm cited a weaker macro environment, lower revenue growth, and broader industry maturation. This move lower has RBLX extending yesterday's 7.1% drop, after Jefferies said the company's user engagement was worsening, though the analyst in coverage raised its price target due to "improving (albeit volatile) group multiples." 

On the charts, Roblox stock has struggled to rally from its recent May 10 record low of $21.65, with overhead pressure at its 50-day moving average. Year-to-date, the equity is already down 71.7%. 

Despite calls outnumbering puts on an absolute basis, the stock's 10-day put/call volume ratio of 0.80 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is in the elevated 97th percentile of its annual range. In other words, this suggests puts being picked up at a much faster-than-usual rate over the last two weeks. 

For those looking to weigh in, options look like a solid move at the moment. According to its Schaeffer's Volatility Scorecard (SVS)  tally of 74 out of 100, RBLX has consistently realized bigger returns than options traders have priced in over the last 12 months.

Published on Jun 10, 2022 at 9:52 AM
  • Buzz Stocks

The shares of Docusign Inc (NASDAQ:DOCU) are down 24.3% to trade at $66.20, following the company's dismal earnings report. DOCU posted profits of 38 cents per share, falling below analysts' estimates of 46 cents per share. Though its reported revenue of $588.69 million did top expectations, the e-signature firm also slashed its billings forecast for fiscal 2023. 

The report has invited several bear notes. No less than six analysts slashed their price targets, including BofA Global Research to $72 from $120. The brokerage also downgraded DOCU to "neutral" from "buy." Piper Sandler also chimed in with a price-target cut to $75 from $100, noting the company's weakening macro backdrop. 

Analyst sentiment was already hesitant coming into today. Of the 12 in coverage, seven considered DOCU a "hold" or worse, compared to five " buy" or better ratings. Meanwhile, the 12-month consensus price target of $104.39 is a 58.2% premium to last night's close. 

This pessimism isn't surprising, considering DOCU's 42.6% year-to-date deficit. Despite a rally attempt off its mid-May two-year bottom near the $64 level, the security failed at the 80-day moving average -- a trendline that also acted as a ceiling late last year. 



Published on Jun 10, 2022 at 9:48 AM
  • Analyst Update

Netflix Inc (NASDAQ:NFLX) stock is a "sell," according to a Goldman Sachs bear note. In addition to downgrading the FAANG concern, the brokerage firm slashed its price target to $186 from $265, citing the company's focus on profitability as well as recession concerns and heightened competition from other streaming services. NFLX was last seen 5.3% lower to trade at $182.56.

Coming into today, analysts were sitting on the fence, with 21 brokerages rating Netflix stock a "hold," while one says "sell," and two suggest a "strong sell." However, six "strong buy" recommendations indicates there's still some room for members of the brokerage bunch to sour on the streaming giant. Meanwhile, the 12-month consensus price target of $320.92 -- a 74.6% premium to last night's close -- also suggests additional price-target cuts could be coming through soon.

Options traders are likely disappointed by the news, as there's been a penchant for bullish bets of late. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Netflix stock's 10-day call/put volume ratio of 1.99 stands higher than 72% of readings from the past year.

This sentiment is reflected by the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.62, which sits higher than just 9% of readings from the past year -- indicating short-term options traders are incredibly call-biased at the moment.

For those looking to weigh in, options look like a solid move at the moment. According to its Schaeffer's Volatility Scorecard (SVS)  tally of 94 out of 100, NFLX has consistently realized bigger returns than options traders have priced in over the last 12 months.

On the charts, a late-April bear gap pushed the shares near roughly five-year lows, and they've failed to close above $208 ever since. Today's negative price action has pushed the equity back below the 30-day moving average, putting the equity at a 69% year-to-date deficit. 

Published on Jun 10, 2022 at 9:09 AM
  • Opening View

All eyes are on May's consumer price index (CPI) this morning, which showed inflation increasing by 8.6% over the past year, compared to expectations of 8.3% -- rising at the quickest pace since 1981. As prices rise, the cost of living jumped 1% in May, keeping at a 40-year high. In response, the two-year Treasury yield surged above 2.8%. Dow Jones Industrial Average (DJIA) futures are down 302 points, while S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures sink firmly into the red as well.  

Continue reading for more on today's market, including:

  • Real Estate stock could soon break below technical support. 
  • Trade Desk stock flashing bear signal on the charts. 
  • Plus, DOCU and SFIX are plummeting after their quarterly reports; and CME receives an upgrade.

Futures June10

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.1 million call contracts traded on Thursday, and 763,627 put contracts. The single-session equity put/call ratio rose to 0.69, and the 21-day moving average stayed at 0.62.
  2. DocuSign Inc (NASDAQ:DOCU) is taking a nosedive in electronic trading, down 25.3%, after the company posted a first-quarter profit miss and weak guidance, though revenue came in above estimates. Plus, BofA Global Research downgraded the stock to "neutral" from "buy," with a price-target cut to $72 from $120, while six other analysts slashed their price targets as well. 
  3. Stitch Fix Inc (NASDAQ:SFIX) is plummeting as well, down 15.3% premarket, after posting wider-than-expected fiscal third-quarter losses, a revenue miss, and a low current-quarter forecast. So far, no fewer than nine analysts have turned in bear notes, as the stock heads for a fresh record low. 
  4. Atlantic Equities upgraded CME Group Inc (NASDAQ:CME) to "overweight" from "neutral," noting the stock's strong fundamentals and attractive entry point. CME is up 1.8% before the bell. 
  5. Today will bring the University of Michigan's consumer sentiment index, the 5-year inflation expectations, and a federal budget balance update.


Asian, European Markets Fall

Asian markets were mostly lower on Friday, with the exception of China’s Shanghai Composite, which rose 1.4% as shares of tech giant Alibaba (BABA) staged a rebound. The stock dropped the day prior amid reports that Chinese regulators and Jack Ma’s Ant Group have both put an end to rumors of the revival of Ant going public. Meanwhile, the Chinese producer price index rose 6.4% year-over-year in May, coming in line with expectations. Elsewhere in the region, the Hong Kong Hang Seng lost 0.3%, the South Korean Kospi dropped 1.1%, and the Nikkei in Japan lost 1.5%.

European stocks are falling today as the European Central Bank’s (ECB) most recent rate hike decision sinks in, and investors look ahead to a consumer price index (CPI) reading in the U.S. for more clues on inflation. At last check, the London FTSE 100 is 1.2% lower, the German DAX has shed 1.2%, and the French CAC 40 is 1.5% lower.

Published on Jun 10, 2022 at 7:35 AM
Updated on Jun 10, 2022 at 7:36 AM

Hi. My name is Keith Kaplan. Since 2004, I’ve been building sophisticated computer software with a single goal in mind:make money. 

But after years of helping my Fortune 500 clients get rich, I was burnt out. So I quit, and applied my engineering skills to a specific corner of the stock market … where you could potentially generate instant cash every time you trade. 

My technique is different. But it’s surprisingly easy to get started. And I’ve used it personally, in my own family’s portfolio, to make thousands of dollars in extra income — WITHOUT losing sleep at night. 

After 20 years as a computer engineer, this is my #1 proudest creation. A “done-for-you system” that can let you pull instant cash out of three stocks every month… all year long. 

I’ve even filmed a short video “demo” for folks who are interested in learning how this trade works. Click the button below to watch it now…

Click Here for a LIVE Video “Demo” of My Infinite Income Loop.

Published on Jun 10, 2022 at 7:28 AM
  • Buzz Stocks

Today's Stock Market News & Events: 6/10/2022

by Schaeffer's Digital Content Team

Today the monthly CPI is due out, as well as monthly core CPI, year-over-year CPI, and year-over-year core CPI. The University of Michigan's consumer sentiment index is also on tap, alongside 5-year inflation expectations, and a federal budget balance update.

There are no public companies slated to release corporate earnings today, June 10.

Looking ahead to next week, the middle of June will be busy, with loads of economic data due out. Multiple updates from the Federal Reserve are sure to keep Wall Street's attention, while a host of indexes will give clues into the economy's performance at the midpoint of this inflation-laden year. As far as earnings are concerned, it'll be relatively bare with earnings season firmly behind us. Of the few names are still set to report, with Adobe (ADBE), Jabil (JBL), Kroger (KR), and Oracle (ORCL) taking center stage.

All economic dates listed here are tentative and subject to change.

Team Schaeffer's is participating at the Southwest Ohio Take Steps walk this weekend! Millions of Americans are living with Crohn’s disease or ulcerative colitis, and currently there is no cure. Our team is walking and raising money to support the crucial work of the Crohn’s & Colitis Foundation. Take Steps is the Foundation’s largest nationwide fundraising campaign, helping to accelerate the progress of breakthrough research and to support critical patient programs. Support the cause and/or our team here.

Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!


Special Offers from Schaeffer's Trading Partners

MORE | MARKETstories

This 60-Second Trade Makes Instant Cash Hit Your Account… Every Single Time
Trade Like THIS to Put Up to $2,880 “On Loop” In Income
Holiday-Shortened Week Ekes Out a Rally
All three major benchmarks were set to snap a three-week losing streak
Put Traders Circle Soaring Zendesk Stock After Buyout
Zendesk will be acquired in a $10.2 billion deal
This 60-Second Trade Makes Instant Cash Hit Your Account… Every Single Time
Trade Like THIS to Put Up to $2,880 “On Loop” In Income