Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Oct 7, 2021 at 2:05 PM
  • Best and Worst Stocks

 

 
Published on Oct 7, 2021 at 1:37 PM
  • Buzz Stocks
  • Earnings Preview

Fastenal Stock Buckles Up Ahead of Earnings

by Schaeffer's Digital Content Team
 
Published on Oct 7, 2021 at 12:02 PM
  • The Week Ahead

The second full week of October is plenty busy. Several financial names will announce their quarterly reports, and the second half of the week will bring plenty of economic data. Some of the notable earnings on tap will be Bank of America (BAC), Delta Air Lines (DAL), Goldman Sachs (GS), JP Morgan Chase (JPM), Progressive (PGR), UnitedHealth (UNH), Walgreens Boots Alliance (WBA), and Wells Fargo (WFC). 

Below is a list of key market events scheduled for the upcoming week. All economic dates listed below are tentative and subject to change.

Monday, Oct. 11, there is no economic data scheduled. 

Tuesday, Oct. 12, will bring job openings and the National Federation of Independent Business' (NFIB) small-business index.

It gets a bit busier on Wednesday, Oct. 13, with the consumer price index (CPI), core CPI, and Federal Open Market Committee (FOMC) minutes on tap. 

The usual initial and continuing jobless claims are due out on Thursday, Oct. 14, as well as the producer price index (PPI) and core PPI. 

Friday, Oct. 15 features retail sales, core retail sales, the import price index, the Empire State manufacturing index, the consumer sentiment index, and business inventories. 

Published on Oct 4, 2021 at 1:56 PM
Updated on Oct 7, 2021 at 11:45 AM
  • Most Active Weekly Options
  • Intraday Option Activity
 
Published on Oct 7, 2021 at 11:43 AM
  • Buzz Stocks
 
Published on Oct 7, 2021 at 10:56 AM
Updated on Oct 7, 2021 at 10:56 AM
  • Analyst Update
 CTXS is seeing five times its usual intraday options volume, with 174 calls and 531 puts across the tape so far. The weekly 10/29 104-strike put is the most popular, followed by the 103-strike put in the same series, with new positions being bought to open at both. 
Published on Oct 7, 2021 at 10:30 AM
  • Buzz Stocks

So far, 61,000 calls and 24,000 puts have crossed the tape -- four times the intraday average. Most popular by far is the weekly 10/8 12-strike call, followed by the 11-strike call in the same series. This means options traders are expecting upside for TLRY by tomorrow, when these contracts expire.

Published on Oct 7, 2021 at 10:02 AM
  • Buzz Stocks
 
Published on Oct 7, 2021 at 7:29 AM
Updated on Oct 7, 2021 at 7:41 AM
  • Buzz Stocks

Today's Stock Market News & Events: 10/7/2021

by Schaeffer's Digital Content Team

Today comes with initial and continuing jobless claims data updates, as well as a consumer credit report.

The following companies' earnings announcements are expected today, October 7:

Conagra Brands Inc. (NYSE:CAG -- $34.48) operates as a consumer-packaged goods food company in North America. Conagra will report its Q1 earnings of 2022 before the bell today.

Helen of Troy Ltd. (NASDAQ:HELE -- $218.04) designs, develops, imports, markets, and distributes a portfolio of consumer products worldwide. Helen of Troy will report its Q2 earnings of 2022 before the bell today.

Lamb Weston Holdings Inc. (NYSE:LW -- $62.34) produces, distributes, and markets value-added frozen potato products worldwide. Lamb Weston will report its Q1 earnings of 2022 before the bell today.

Tilray Inc (NASDAQ:TLRY -- $10.79) is a Canadian-based pharmaceutical and cannabis brand. Tilray will release its Q1 earnings of 2022 before the bell today.

Accolade Inc. (NASDAQ:ACCD -- $40.10) develops and provides technology-enabled solutions that help people to understand, navigate, and utilize the healthcare system and their workplace benefits in the United States. Accolade will report its Q2 earnings of 2022 after the market closes today.

Looking ahead to tomorrow, employment data continues to close out the first full week of October. Friday will feature nonfarm payrolls, an unemployment rate update, and average hourly earnings.

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

Published on Oct 6, 2021 at 2:43 PM
Updated on Oct 6, 2021 at 4:44 PM
  • Best and Worst Stocks

As investors head into the fourth quarter and set their investment strategies for the remainder of 2021, an important factor to consider are seasonality trends for October. Semiconductor stocks have attracted considerable attention this year, amid a global chip shortage. Today, we will focus on one name that could turn in big gains by the end of the month: Lam Research Corporation (NASDAQ:LRCX). The stock stands out as one of the 25 best performers in October going back 10 years, according to a list compiled by Schaeffer's Senior Quantitative Analyst Rocky White.

Though Lam Research stock has cooled off in recent months, it is four months removed from a June 1, record high of $673.80. The shares have since struggled with overhead pressure at the $620 mark, though the $550 level seems to have emerged as support, containing LAM's latest pullback. LAM was last seen down 0.5% to trade at $552.91, though the security still sports a 61.9% year-over-year lead. Plus, there is reason to believe the security could bounce back towards record levels in the coming weeks.

LRCX

Per White's data, LRCX has seen nine positive one-month returns over the past 10 years, averaging an 8.1% pop in this time period. That makes it the best chip stock on the list, with the second best one-month return. A similar move from its current perch would put the security back over the $597 mark -- much closer to its record high. 

Now could be a great opportunity to weigh in on Lam Research stock's next move with options. LAM's Schaeffer's Volatility Index (SVI) of 34% sits higher than 20% of readings from the past year, suggesting the options market is pricing in low volatility expectations for the equity at the moment.

Published on Oct 6, 2021 at 10:53 AM
Updated on Oct 6, 2021 at 3:02 PM
  • Buzz Stocks

The shares of Constellation Brands, Inc. (NYSE:STZ) are lower this morning, down 0.2% to trade at $212.40, following the beer and wine maker's fiscal second-quarter earnings results. The company beat Wall Street's revenue estimates and also raised its full-year outlook, but reported worse-than-expected earnings of $2.38 per share, as opposed to analysts' estimates of $2.77 per share.

The equity's options pits are popping with activity. So far, 5,239 calls and 4,070 puts have crossed the tape, which is seven times the intraday average. Most popular is the weekly 10/8 215-strike call, followed by the 217.50-strike call in the same series, with new positions being opened at both.

A broader look shows calls have not been as popular of late. The security's Schaeffer's put/call open interest ratio (SOIR) of 1.24 sits higher than 90% of readings from the past 12 months. This implies short-term options traders have been much more interested in puts recently. 

Echoing this, STZ's 10-day put/call volume ratio of 1.55 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 80th percentile of its annual range. In other words, puts have been getting picked up at an unusually fast clip.

It's easy to see why traders have taken such a bearish stance. On the charts, STZ has struggled for much of the third quarter, falling below the once supportive 60-day moving average in July. JuST off from its fifth-consecutive monthly drop, Constellation Brands stock is down 2.7% year-to-date.
Published on Oct 6, 2021 at 2:57 PM
  • Best and Worst Stocks

Last month proved to be a pivotal one for the S&P 500 Index (SPX), as "September seasonality" resulted in a monthly losses for the index, which also snapped a seven-month win streak -- its longest since 2017. That volatility tends to carry over to October, and while plenty of names usually buck this trendIBM (NYSE:IBM) has struggled in the past. The Dow member is on Schaeffer's Senior Quantitative Analyst Rocky White's list of 25 worst performing stocks for October, so now seems like a good time to dig into IBM stock's technical setup.

Worst Of October

According White's data, which features SPX stocks with the worst returns in October, IBM averaged a loss of 5.8% over the last 10 years, and finished higher just twice. That puts the security at the very top of the list, solidifying its position as the worst blue-chip component, historically, this month.

At last check, IBM is down 0.5% to trade at $142.43, once again facing pressure from the 100-day moving average. It has been a relatively unremarkable year for the security so far, as its June 10 rally to an annual high of $152.84 is still far off from pre-pandemic levels. Now sporting a 12.4% lead in 2021, a comparable loss in October to those seen over the past 10 years would bring IBM dangerously close to its year-to-date breakeven.

IBM Chart October 6

Options traders have been more bearish than usual in the last two months. This is per the equity's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 88th annual percentile of its annual range. This suggests long puts have been getting picked up at a quicker-than-usual clip. 

For those looking to speculate on the stock's next move lower, premium can be had for a bargain. This is per the stock's Schaeffer's Volatility Index (SVI) of 21%, which sits higher than 26% of readings from the past year. In other words, the options market is pricing in low volatility expectations for the equity at the moment. 

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