Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Apr 8, 2021 at 9:27 AM
Updated on Apr 8, 2021 at 9:59 AM
  • Analyst Update
 
Published on Apr 8, 2021 at 9:34 AM
  • Buzz Stocks
The shares of Conagra Brands Inc (NYSE:CAG) are up 0.7% at $37.50 ahead of the market's open, following the company's fiscal third-quarter earnings report. 
Published on Apr 8, 2021 at 7:35 AM
  • Buzz Stocks

Today's Stock Market News & Events: 4/8/2021

by Schaeffer's Digital Content Team

Another round of initial and continuing jobless claims will be released today.

The following company is slated to release its quarterly earnings report today, April 8:

Apogee Enterprises Inc. (NASDAQ:APOG -- $39.46) designs and develops glass and metal products and services. Apogee Enterprises will report its Q4 earnings of 2021 before the bell today.

Conagra Brands Inc. (NYSE:CAG -- $37.24) operates as a consumer-packaged goods food company in North America. Conagra Brands will report its Q4 earnings of 2021 before the bell today.

Constellation Brands Inc. (NYSE:STZ -- $234.94) produces, imports, and markets beer, wine, and spirits. Constellation Brands will report its Q4 earnings of 2021 before the bell today.

Afya Ltd. (NASDAQ:AFYA -- $20.58) operates as a medical education group in Brazil. Afya will report its Q4 earnings of 2020 after the close today.

Levi Strauss & Co. (NYSE:LEVI -- $24.46) engages in the design, marketing, and sale of apparel products. Levi Strauss will report its Q1 earnings of 2021 after the close today.

PriceSmart Inc. (NASDAQ:PSMT -- $95.66) engages in the international management and operation of membership warehouse clubs. PriceSmart will report its Q2 earnings of 2021 after the close today.

WD-40 Co. (NASDAQ:WDFC -- $304.64) develops and sells maintenance products, and homecare and cleaning products. WD-40 will report its Q2 earnings of 2021 after the close today.

The week will come to a close on Friday with the producer price index (PPI) and wholesale inventories on tap. All economic dates listed here are tentative and subject to change.

Published on Apr 7, 2021 at 2:18 PM
  • Technical Analysis
  • Options Recommendations
The shares of social media name Pinterest Inc (NYSE:PINS) have reclaimed the $76 mark, which had been an area of resistance for the past several weeks, and is four times above its initial public offering (IPO) price. Plus, thanks to a solid 13% gain the last seven days,  the security has distanced itself from its year-to-date breakeven level, making now good time to speculate on PINS’ next move with call options.
 
Though analysts are mostly bullish towards Pinterest stock, there is still some room for upgrades, which could push shares higher. Of the 19 in question, six still carry a tepid “hold” rating.
 

Short sellers keep piling on, though. Short interest has increased 61% year-to-date, and is now only 20% below record peak since the stock’s IPO. In fact, short interest added 7.3% in the most recent reporting period, and the 21.91 million shares sold short now account for a whopping 25.4% of the stock’s available float. With the exception of those that acquired positions in February, these shorts are now underwater.
 
Additional tailwinds could come in the form of shifting sentiment in options pits. This is per Pinterest stock’s 50-day put/call volume ratio of at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 99th percentile of its annual range. In other words, long puts are being picked up at a faster-than-usual clip.
 
PINS options can be had for a bargain right now, too. The security's Schaeffer's Volatility Index (SVI) of 52% stands at the very bottom percentile of the past 12 months, or the lowest level since May 2020. In other words, the stock is sporting attractively priced premiums at the moment. Finally, our call recommendation has a leverage ratio of 4 and will double in a 23.7% pop in the underlying equity.
 
Subscribers to Schaeffer's Weekend Trader options recommendation service received this PINS commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading serv
Published on Apr 7, 2021 at 12:55 PM
  • Buzz Stocks
  • Earnings Preview

Chip Stock Red-Hot Ahead of Earnings

by Schaeffer's Digital Content Team
 
Published on Apr 7, 2021 at 12:43 PM
  • Quantitative Analysis

To say electronics retailer Best Buy Co Inc (NYSE:BBY) has staged an impressive comeback off its early March trough would be an understatement. The security quickly closed a bear gap sparked by a mixed first-quarter earning report, and is now trading just within striking distance of its Nov. 5 all-time high of $124.89, with solid support from the 20-day moving average. And though a consolidation pattern near the $122 level has prevented shares from hitting more fresh highs, a historically bullish signal flashing could give BBY a much-needed boost toward a new all-time peak. 

BBY Chart April 7

According to one study from Schaeffer's Senior Quantitative Analyst Rocky White, these recent highs come amid historically low implied volatility (IV) -- a bullish combination for Best Buy stock in the past. White's study shows that there have been four other times in the past five years when the security was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) stood in the 20th percentile of its annual range or lower, as is the case with BBY's SVI of 28%, which sits in just the third percentile of its 12-month range.

According to this data, Best Buy stock enjoyed an average one-month return of 6.9% following these signals and was higher one month later 75% of the time. BBY currently sits at $119.61, and a move of similar magnitude would stick the stock at a brand-new all-time high of $127.86. 

Despite the security's impressive 93.7% year-over-year lead, there is still some hesitancy amongst analysts, which could lead to price-boosting upgrades down the line. Of the 18 in coverage, 10 say "buy" or better, while eight say "hold" or worse. Plus, the 12-month consensus price target of $116.90 is a 3.2% discount to current levels. 

Published on Apr 7, 2021 at 11:35 AM
  • Buzz Stocks
 
Published on Apr 7, 2021 at 11:01 AM
  • Analyst Update
 
Published on Apr 7, 2021 at 9:43 AM
  • Buzz Stocks
 
Published on Apr 7, 2021 at 8:55 AM
  • Analyst Update

The shares are Sunrun Inc (NASDAQ:RUN) are up 2% at $57.35 this morning after RBC initiated coverage on the solar energy name with an "outperform" rating, and an $81 price target. RBC's fresh price target represents a 44.1% premium to last night's close.

The analyst joins an already bullish brokerage bunch. Of the 12 in coverage, coming into today, 10 called RUN a "buy" or better, while only two said "hold." What's more, the 12-month consensus price target stands all the way up at $81.17.

SunRun has several technical barriers it needs to topple before it can fulfil Wall Street's estimates. The security is down roughly 18% this year, with overhead pressure from the 120-day moving average keeping a lid on the shares. More recently, the stock has been struggling to overtake its 20-day moving average, though it looks like today's pop could put RUN well over the trendline. 

Bullish sentiment pervades in the options pits too. In fact, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), RUN sports a 10-day call/put volume ratio of 5.48, which stands higher than 81% of readings from the past year. This means calls are being picked up at a quicker-than-usual clip. 

Short interest is beginning to unwind on Sunrun, though it looks like these bears are still firmly in control. Short interest dropped 3.8% in the last two reporting periods, and the 27.32 million shares sold short make up a solid 23.7% of the stock's available float, or nearly a weeks' worth of pent-up buying power, at RUN's average pace of trading. Should these shorts continue to jump ship, it could put some additional wind at the equity's back. 

Published on Apr 7, 2021 at 8:50 AM
  • Buzz Stocks
 
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.

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