Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Apr 7, 2021 at 7:52 AM
  • Buzz Stocks

Today's Stock Market News & Events: 4/7/2021

by Schaeffer's Digital Content Team

Wall Street will keep an eye on February's trade deficit data today, as well as consumer credit  data. The FOMC meeting minutes will also be released this afternoon. There are a handful of interesting earnings reports due out today.

The following company is slated to release its quarterly earnings report today, April 7:

Lamb Weston Holdings Inc. (NYSE:LW -- $80.92) produces, distributes, and markets value-added frozen potato products. Lamb Weston will report its Q3 earnings of 2021 before the bell today.

MSC Industrial Direct Co. Inc. (NYSE:MSM -- $91.64) distributes metalworking and maintenance, repair, and operations (MRO) products. MSC Industrial will report its Q2 earnings of 2021 before the bell today.

RPM International Inc. (NYSE:RPM -- $94.34) manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets. RPM will report its Q3 earnings of 2021 before the bell today.

The Simply Good Foods Co. Inc. (NASDAQ:SMPL -- $31.17) designs, manufactures, and markets railroad freight car equipment. Simply Good Foods will report its Q2 earnings of 2021 before the bell today.

Resources Connection Inc. (NASDAQ:RGP -- $13.78) provides consulting services to business customers under the Resources Global Professionals name. Resources Connection will report its Q2 earnings of 2021 after the close today.

Looking ahead to tomorrow, another round of initial and continuing jobless claims will be released. All economic dates listed here are tentative and subject to change.

Published on Apr 6, 2021 at 3:49 PM
Updated on Apr 6, 2021 at 3:55 PM
  • Best and Worst Stocks

As the pace of Covid-19 vaccination continues to ramp up in the U.S. -- the weekly average of inoculations is now at 3 million new shots per day -- previously shunned travel stocks are retaking the spotlight. Airline stocks are already starting to see the benefits of a reopening economy, and so are travel booking websites. Specifically, Expedia Group Inc (NASDAQ:EXPE) and Booking Holdings Inc (NYSE:BKNG), which fell to multi-year lows during the pandemic market bottom, are fresh off record highs and entering a historically bullish month.

First, to Expedia stock, which has nearly quadrupled off its March lows to a March 18, all-time high of $187.93, with support from the 40-day moving average since January. And while EXPE has since cooled off from that peak, the $170 mark seems to have stepped in as a floor. Longer term, the equity sports a 231.6% year-over-year lead.

EXPE 40 Day

Similarly, Booking Holdings stock hit a March 17, all-time-high of $2,469.58, which is more than double its pandemic lows near the $1,100 mark. The equity suffered a notable bear gap since that record, but the $2,200 level contained served as a net and contained further losses. Now, shares are once again within a chip shot from that peak, and are up 79% year-over-year.

BKNG

Both equities show up on Schaeffer's Senior Quantitative Analyst Rocky White's list of the 25 stocks with the best returns in April. According to this data, EXPE has ended the month higher eight times over the past 10 years, while BKNG has ended it higher nine times, averaging 8.2% and 4.8% pops, respectively. Similar moves would put EXPE over $190 and BKNG over $2,555 -- brand new record highs for both stocks.

Best Stocks April

Published on Apr 6, 2021 at 1:28 PM
  • Best and Worst Stocks

It's been a volatile time for the semiconductor sector recently, with global chip shortages weighing heavily on the space. While some big names are looking toward solutions, the shortage sent many reeling last month as many sector members stepped into the earnings confessional. One such name was Broadcom Inc (NASDAQ:AVGO). The equity suffered a selloff in early March, which only seemed to deepen following a tepidly received earnings report

While AVGO's March dip culminated in a sharp ricochet off the 100-day moving average, it appears most of these gains have consolidated just below the $490 level -- home to the equity's Feb. 19 all-time closing high. Today, the chip stock is distancing itself even further from this level, down 0.1% to trade at $487.93. And if investors need more of a reason to put the breaks on AVGO, April has been a historically bearish month for the stock, performance wise. 

AVGO April 6

In fact, the equity just showed up on Schaeffer's Senior Quantitative Analyst Rocky White's list of the 25 stocks with the worst returns in April. According to this data, AVGO has ended the month lower six times over the past 10 years, averaging a drop of 1.1%. A similar move would put the equity right near the $482 mark -- even further away from its recent consolidation level. 

Wost of April

A round of bear notes from the brokerage bunch could send AVGO lower, too. The security's 12-month consensus price target of $510.96 sits at an untouched region and represents a 4.7% premium to current levels. Plus, 18 of the 21 analysts in coverage carry "buy" or better ratings, while just three say "hold." 

For those still looking to play AVGO's next move, though, options look like the way to go. The equity's Schaeffer's Volatility Index (SVI) of 27% stands higher than only 6% of readings from the past 12 months, implying option players have rarely priced in lower volatility expectations. 

Published on Apr 6, 2021 at 12:02 PM
  • Buzz Stocks

Is Red-Hot Tivity Health Stock Maxed out?

by Schaeffer's Digital Content Team
 
Published on Apr 6, 2021 at 10:55 AM
  • Analyst Update
 
Published on Apr 6, 2021 at 10:36 AM
  • Buzz Stocks
  • Analyst Update
 
Published on Apr 6, 2021 at 10:19 AM
  • Buzz Stocks

The shares of Cara Therapeutics Inc (NASDAQ:CARA) are up 13.1% to trade at $23.82  at last check -- their highest level in over a year -- on reports that the equity will be added to the S&P 600 SmallCap Index (SP600). The biopharmaceutical company's stock will replace MTS Systems (MTSC), effective before the open on Thursday, April 8.

Prior to the announcement, Cara Therapeutics stock was staging an impressive rise on the charts with solid support emerging at the 50-day moving average. Should today's positive price action hold, it will mark CARA's best single-day percentage gain in over a year. Plus, the security is up 57.4% this year alone. 

A short squeeze could give CARA even more room to run. Short interest is up 14.6% in the last two reporting periods, and the 3.21 million shares sold short represents a healthy 8.3% of the security's total available float. It would take over six days to buy back these bearish bets, at the stock's average trading volume. 

Options traders have been much more bullish, however. The stock's 50-day call/put volume ratio of 13.17 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the slightly elevated 74th percentile of its annual range, implying long calls have been picked up at a much faster-than-usual clip during the past ten weeks.

Published on Apr 5, 2021 at 3:17 PM
Updated on Apr 6, 2021 at 9:41 AM
  • Quantitative Analysis

The shares of plant-based food producer Beyond Meat Inc (NASDAQ:BYND) have been cooling off recently after hitting a Jan. 26, roughly two-year high of $221. The good news is that this recent dip has put the security near a historically bullish trendline, which could send BYND back up the charts in the coming weeks.

Specifically, Beyond Meat stock just came within one standard deviation of its 320-day moving average, after spending some time above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, three similar signals have occurred in the past three years. The security enjoyed a positive return one month later, averaging a whopping 21.8% gain for that time period. From its current perch, a move of similar magnitude would put BYND over the $160 mark, which is closer to that January peak.

BYND 320 Day

Analysts are still pessimistic towards the equity, leaving the door wide open for potential price-target hikes and/or upgrades in the near future. Of the 16 in question, 14 carry a "hold" or worse rating. Plus, the 12-month consensus target price of $128.80 is a 2% discount to current levels.

Short sellers have been piling on the security, too, leaving it ripe for a short squeeze. Short interest added 33.9% over the last two reporting periods, and the 10.95 million shares sold short account for a whopping 19.7% of the stock's available float.

A shift in the options pits could create even more tailwinds. This is per Beyond Meat stock's Schaeffer's put/call open interest ratio (SOIR) of 1.46, which stands in the 96th percentile of its annual range. In other words, short-term traders have rarely been more put-biased.  

Now could be a good time to weigh in on BYND's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 44% sits at the lowest percentile of all other readings from the past year. This suggests options players are pricing in lower-than-usual volatility expectations at the moment.

Lastly, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 95 out of 100, indicating the equity has exceeded volatility expectations during the past 12 months -- a boon for options buyers.

Published on Apr 6, 2021 at 9:35 AM
  • Buzz Stocks

The shares of Snap Inc (NYSE:SNAP) are up 4.5% at $56.52 this morning, buzzing on analyst praise. Specifically, Atlantic Equities lifted its rating to "overweight" from "neutral," citing strength in its ad business and pipeline products, which could help grow revenue.

Atlantic Equities joins an already bullish brokerage bunch. Prior to today's coverage, 21 analysts considered SNAP a "buy" or better, while six said "hold" or worse. Plus, the 12-month consensus price target of $74.03 stands at a 36.8% premium to current levels.

The security seems to be bouncing back from the selloff it suffered from late-February through March, with support at the 120-day moving average providing a springboard late last month. The stock will still have to contend with pressure at the 20-day moving average, though, which has acted as a ceiling on the charts for nearly three weeks. Year-over-year, SNAP is up 345%.

Premiums on SNAP are still relatively inexpensive, as the equity's Schaeffer's Volatility Index (SVI) of 60% sits in the 22nd percentile of its annual range, implying option traders are pricing in relatively low volatility expectations at the moment. 

Plus, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 92 out of 100. This means SNAP has exceeded volatility expectations during the past 12 months -- a boon for options buyers.

Published on Apr 6, 2021 at 8:13 AM
  • Buzz Stocks

Today's Stock Market News & Events: 4/6/2021

by Schaeffer's Digital Content Team

The latest job openings numbers are due out today. There will also be a handful of interesting earnings reports due out today.

The following company is slated to release its quarterly earnings report today, April 6:

The Greenbrier Co. Inc. (NYSE:GBX -- $48.25) designs, manufactures, and markets railroad freight car equipment. Greenbrier will report its Q2 earnings of 2021 before the bell today.

Lindsay Corp. (NYSE:LNN -- $169.17) provides water management and road infrastructure products and services. Lindsay will report its Q2 earnings of 2021 before the bell today.

Paychex Inc. (NASDAQ:PAYX -- $100.36) provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services. Paychex will report its Q3 earnings of 2021 before the bell today.

SMART Global Holdings Inc. (NASDAQ:SGH -- $49.48) designs and manufactures electronic products focused in memory and computing technology areas. SMART Global will report its Q2 earnings of 2021 after the close today.

Looking ahead to tomorrow, Wall Street will keep an eye on February's trade deficit data, as well as consumer credit  data. The FOMC meeting minutes will also be released on Wednesday afternoon. All economic dates listed here are tentative and subject to change.

Published on Apr 5, 2021 at 3:10 PM
  • Most Active Options Update
Today, NVDA is seeing a similar preference for calls. So far, 73,000 calls and 37,000 puts have crossed the tape. 
Published on Apr 5, 2021 at 3:06 PM
  • Earnings Preview

Snack Stock on the Mend Headed into Earnings

by Schaeffer's Digital Content Team
 

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