The rumblings of another earnings season are upon us, and bank stocks, as usual, are kicking off the event. On the docket today, for instance, is financial name Goldman Sachs Group Inc (NYSE:GS), which just blew analysts' expectations out of the water with a fourth-quarter earnings beat of $12.08 per share. The company's revenue also topped estimates. Despite the earnings and revenue beat, GS is down 0.7% at $298.91 at last check, reversing course after the company's CEO warned that there is still significant uncertainty, thanks to the growing number of coronavirus cases worldwide. 

While the security is falling further from its Jan. 14 record high of $309.41, longer-term, the shares have been in rally mode since familiar support at the $190 mark catapulted GS past its pre-pandemic levels. In the past nine months, GS is up roughly 64%, with guidance from its ascending 10-day moving average.

While the brokerage bunch hasn't chimed in on Goldman Sachs' earnings beat yet, most in coverage came into today optimistic. Of the 13 in coverage, nine call it a "strong buy," while the 12-month consensus price target of $307.81 is a 2.3% premium to Friday's close. 

Option traders have shared this sunny sentiment, per Goldman Sachs' 10-day call/put volume ratio of 2.82 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 80% of readings from the past year. This means calls have been picked up at a much quicker-than-usual clip of late. 

Alternative energy company FuelCell Energy, Inc. (NASDAQ:FCEL) will step into the earnings confessional before market opens on Thursday, Jan. 21. The renewable energy stock has been red-hot in the last six months, but hasn't fared so well in the earnings confessional over the past 12 months. This has resulted in post-earnings drops of17.5% back in September, and a more modest dip of 3.5% back in June. For the upcoming earnings report on the fourth quarter of 2020, analysts expect that FCEL will report -$0.04 per share

FCEL has tacked on 607% in the last 12 months. That is not a misprint. Along the way, the shares' ascending 20-day moving average has contained pullbacks. Yet despite the torrid pace, all six analysts maintain "hold" or "strong sell" ratings on the stock. Should FCEL score a post-earnings pop, it could draw a round of bullish analyst attention. 

Overall, FuelCell is still lacking what it times to be an ideal value investment at this time. The company has reported a trend of decreasing annual revenue and continues to pile on to its net losses. FuelCell has lost over $30 million in revenue since 2017, bringing its top line total to just $64.9 million over the past 12 months. To summarize, FCEL has a long way to go before it can justify its current $5.1 billion market cap.

Cisco Systems, Inc. (NASDAQ:CSCO) made waves in the software and  telecommunications equipment industry last week. Cisco announced a jaw-dropping amendment to its original merger agreement, which would complete Cisco’s acquisition of Acacia Communications (ACIA) at a rate of $115 per share, or for approximately $4.5 billion. This new acquisition value is a significant 73% increase from the originally agreed upon price of $2.6 billion.

Despite the big move, Cisco stock hasn't had much big movement on the charts recently. The shares are down 7.3% in the last 12 months, with short-term support emerging at the $44 level, which is the site of CSCO's post-earnings bear gap levels from mid-August. 

Meanwhile, options traders have been picking up CSCO calls over puts at a rapid-fire rate. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 4.15 indicates more than four Cisco calls have been bought to open for every put in the past two weeks. This ratio registers in the 85th percentile of its annual range, pointing to a much healthier-than-usual appetite for bullish bets over bearish of late.

Now is an opportune time to strike on CSCO near-term options. The stock's Schaeffer's Volatility Index (SVI) of 29% is at the 15th percentile of its annual range, suggesting short-term options are pricing in relatively low volatility expectations for the underperformer.

Overall, as a potential investment, CSCO's price-earnings ratio of 18.39 makes the stock one of the most attractive value plays amongst the huge market-cap companies. In addition, the company has a nice dividend yield of 3.17% and a forward dividend of 1.44. 

Stocks concluded the day on Friday logging both daily losses across the board after President-elect Joe Biden's announcement of a $1.9 trillion rescue plan failed to give investors the sentiment boost they needed. For the week, all three U.S. market benchmarks posted significant losses. The Dow Jones Industrial Average (DJI - 30,814.26) dropped 177.3 points for the day on Friday and 0.9% for the week last week. The S&P 500 Index (SPX - 3,768.25) dropped 27.3 points on Friday and 1.5% last week. The Nasdaq Composite (IXIC - 12,998.50) dropped 114.1 points on Friday and 0.9% overall last week. The Cboe Volatility Index (VIX - 24.34) popped 4.7% for the day on Friday, and 12.9% for the week last week -- marking its biggest weekly jump since October 2020

Entering the first earnings season of 2021, the docket of companies set to report is jam packed this week. However, the third week of the year will be relatively quiet on the economic-data front. The trading week is short as the market was closed in observance of Martin Luther King Jr. Day yesterday. Midweek, the National Association of Home Builders (NAHB) index will likely be overshadowed investor attention directed toward President-elect Joe Biden's inauguration. Heading into Thursday and Friday, we'll see a slew of economic data released, including existing home sales.

Today is going to be completely jam packed for investors to close out the week. Retail sales, industrial production, and capacity utilization data is all due out. In addition, the Empire state and producer price indexes latest data are slated to be reported, as well as preliminary consumer sentiment index data and business inventories reports that are set to be released today.

JPMorgan Chase & Co. (NYSE:JPM) operates as a financial services company worldwide. Earnings per share rose to $3.79, which beat the estimate of $2.62. Managed revenue of $30,161,000,000 higher by 3.25% from the same period last year, which beat the estimate of $28,700,000,000.

The PNC Financial Services Group, Inc. (NYSE:PNC) provides banking, investment, mortgage, and consumer and commercial finance products. Earnings per share rose 9.76% over the past year to $3.26, which beat the estimate of $2.61. Revenue of $4,208,000,000 decreased by 8.70% year over year, which beat the estimate of $4,140,000,000.

Wells Fargo & Company (NYSE:WFC) provides banking, investment, mortgage, and consumer and commercial finance products. Earnings per share were down 31.18% year over year to $0.64, which beat the estimate of $0.60. Revenue of $17,925,000,000 declined by 9.74% year over year, which missed the estimate of $18,130,000,000.

Looking ahead to tomorrow, investors will likely be equal parts anxious and excited for President-elect Joe Biden's inauguration into the White House on Wednesday. In addition, the National Association of Home Builders (NAHB) index data will be reported tomorrow.

Following record highs, the major indexes struggled to find footing this past week. Political turmoil remained in the spotlight, as well as increasing coronavirus cases and the potential for more substantial payments to most Americans in the form of stimulus checks. To start the week, the Dow Jones Industrial Average (DJI) closed the day with a nearly 90-point drop, as calls for U.S. President Donald Trump's impeachment weighed. Tuesday, stocks rose modestly, despite news of rising interest rates, and statements that market valuations may be too high. The major benchmark's were fairly muted by the next session, with another spike in COVID-19 cases likely dampening sentiment. After the close came the official news that the House of Representatives voted to impeach Trump for a second time. By Thursday morning, upbeat vaccine data and the hope of additional stimulus boosted the market, even as initial jobless claims surged to their highest level since August. This lifted the Nasdaq Composite (IXIC) to fresh highs, though all three indexes pulled back before the close. By the end of the week, stocks plummeted despite the unveiling of President-Elect Joe Biden's $1.9 trillion stimulus plan. To wrap up the week, all three major indexes are heading for losses.

Several Companies Show Political Side

Following last week's Capitol riot, several social media companies banned the president from their platforms. Analysts chimed in on Twitter (TWTR) this week, after the company removed over 70,000 accounts related to QAnon. Following in the footsteps of Twitter, and several others, Alphabet (GOOGL) removed new content uploaded to Trump's YouTube channel, noting it violated policies for inciting violence, while Amazon (AMZN) stumbled earlier in the week after the e-commerce giant stopped hosting Parler -- a social media operation popular with conservatives. However, it wasn't just social media and tech stocks that were impacted, as Deutsche Bank (DB) stock surged after the financial services institution said it would not conduct future business with President Trump or any of his companies. And Marriot stock (MAR) saw plenty of options volume after revealing its Political Action Committee will pause donations to U.S. lawmakers who voted against certifying President-elect Joe Biden's victory.

Plenty of Wheeling and Dealing, C-Suite Shakeups

Several companies saw notable organizational changes this week, as well. Synchrony Financial (SYF) was boosted after announcing several leadership transitions, and received two price-target hikes to boot. Meanwhile, underperforming American Tower (AMT) agreed to buy Spanish telecom company Telefonica's (TEF) European and Latin American mobile phone masts for $9.4 billion. The same day, Urban Outfitters (URBN) plummeted after a lackluster holiday season and a c-suite shakeup disappointed investors, and blue-chip Visa (V) abandoned its merger with financial technology company Plaid. Later in the week, Penn National Gaming (PENN) announced it will partner with Choice Hotels (CHH). 

Holiday-Shortened Week Features Inauguration

The upcoming week will be a shorter one as we observe Martin Luther King Jr. Day, but a slew of notable earnings reports, including various blue-chip names, are due out. Starting off slow, midweek will bring the inauguration of President-Elect Joe Biden, and the end of the week is filled with economic data. In the meantime, take a look at how much the Dow is worth in alternative assets. 

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

Investor interest in the cannabis industry is growing at an explosive growth rate, and the leading players continue to break through legal barrier after legal barrier, especially in the United States. More than 40 U.S. states legalized recreational and/or medical marijuana by the end of 2020. Now, more and more companies are starting to see the opportunity in cannabis cultivation, marketing, distribution, and technology.

After the Senate runoff elections tilted the favor of the Senate towards Democrats last week, there is growing anticipation that the prospects of cannabis legislation can now find some footing in Congress. While full-scale legalization may be out of reach, smaller reforms tied to police and banking could positively impact the cannabis industry. 

As the cannabis sector continues to grow, investors can anticipate many more marijuana stock initial public offerings (IPOs) on the horizon for the cannabis industry.

Here is a quick roundup of major cannabis stock news this week (Jan. 11 through Jan. 15):

Aphria Inc. (NASDAQ:APHA), a leading global cannabis-lifestyle consumer packaged goods company, reported its quarterly earnings on January 14. Aphria reported net revenue production of $160.5 million CAD in the company's fiscal second quarter represented an increase of 33% year-over-year and an increase of 10% over last quarter's results.

President and CEO of Arena Pharmaceuticals Inc (NASDAQ:ARNA), Amit Munshi, reported sold 14,877 shares of ARNA stock on January 12. These shares were sold at an average price of $75.12 a share. The sale totaled $1.1 million.

Aurora Cannabis Inc. (NYSE:ACB), the Canadian company defining the future of cannabinoids worldwide, announced on January 14 that it had entered into an agreement with Great North Distributors Inc., Canada's first national sales broker for legalized adult-use cannabis.

Canopy Growth Corporation (NASDAQ:CGC) announced on January 14 that the company has filed an early warning report connected with the acquisition of an option to purchase 1 million (1,072,450) common shares of TerrAscend Corp.

GW Pharmaceuticals plc (NASDAQ:GWPH), the world leader in the science, development, and commercialization of cannabinoid prescription medicines, reported its preliminary, unaudited net product sales for the fourth quarter and full-year 2020, as well as the company's key priorities for 2021 on January 12. Based on preliminary unaudited financial information, GWPH expects total net product sales to be approximately $148 million for the fourth quarter. Roughly $526 million for the year of 2020.

The appointment of Rose Marie Gage to the Board of Directors at HEXO Corp. (NYSE:HEXO) was announced on January 14. Following the appointment of Ms. Gage, the Board will comprise of seven directors in total.

Organigram Holdings Inc. (NASDAQ:OGI), a leading licensed producer of Cannabis, announced its quarterly earnings results on January 12. The results were for the company's fiscal first quarter that ended on November 30. OGI's 2021 Canadian adult-use recreational gross and net revenue grew 42% and 30%, respectively, to $22.5 million and $16.8 million, year-over-year.

Sundial Growers Inc. (NASDAQ:SNDL) announced on January 11 that SNDL has launched high-quality Cannabis derivative products under the Top Leaf brand in response to rising consumer demands for solventless cannabis extracts.

HEXO Corp (NYSE: HEXO), announced a joint venture between Truss CBD USA and Molson Coors Beverages Co. (NYSE:TAP), is launching a new CBD beverage line in Colorado on January 13. The product, dubbed Veryvell, is a sparkling CBD water and non-alcoholic CBD beverage with zero sugar and calories. Colorado consumers will be able to choose from three different flavors: Mind & Body (Strawberry Hibiscus), Focus (Grapefruit Tarragon), and Unwind (Blueberry Lavender).

Foot Locker, Inc. (NYSE:FL) just received a bull note from B. Riley this morning. The analyst upgraded the shoe retailer to "buy" from "neutral," and lifted its price target to $58 from $39. Despite this, the shares are down 0.4% at $47.12 at last check. 

Hitting its highest level since May of 2019 straight out of the gate, FL shares have pulled back below the $47.60 mark, where they have been consolidating for most of the week. The equity managed to push past its pre-pandemic levels earlier this month, with the help of its ascending 60-day moving average. In fact, in 2021 alone, Foot Locker stock is up over 17%. 

A closer look at analyst sentiment show most members of the brokerage bunch cautious on the stock. Of the 18 in coverage, 10 sported a "hold" or worse rating coming into today, while the 12-month consensus price target of $45.43 represents a 4% discount to last night's close. Should FL keep climbing, another round of bull notes could put some wind at the security's back. 

Meanwhile, short-sellers have been building their positions, with short interest up 11.2% during the last reporting period. The 7.03 million shares sold short make up 7.8% of FL's available float, or 3.6 days worth of pent-up buying power. Should some of these bearish bets begin to unwind, a short squeeze could help propel the equity higher as well. 

Brinker International, Inc. (NYSE:EAT) is a casual dining restaurant company that owns, operates, or franchises more than 1,600 restaurants in 29 countries under household names like Chili’s Grill & Bar or Maggiano’s Little Italy.

Despite the COVID-19 pandemic, Brinker stock has scored a 37.5% 12-month gain. EAT is another prime example of a V-shaped rally; the stock traded at $7 on March 18, and just yesterday scored a record high of $63.31. During this ascension, the shares' 60-day moving average has contained pullbacks along the way. 

Brinker will step into the earnings confessional before the market opens on Wednesday, Jan. 27. The company has beat expectations on all four of its most recent earnings reports. This resulted in huge post-earnings pops of 29.8% back in April, and 14.5% back in August. On average, in the last eight reports, EAT has scored a post-earnings move of 8.3%, regardless of direction.

Brinker International cut its dividend after the first quarter of 2020 as a result of the COVID-19pandemic. Prior to that, EAT had one of the fastest growing dividends out there. Brinker had more than quadrupled its annual dividend payments to stockholders since its initial $0.32 annual dividend in 2012.

Over the past year, Brinker saw its revenue growth halted by the pandemic, like many other restaurants. The company experienced a revenue decline of nearly $200 million and a net income decline of more than $130 million. Brinker stock currently has an extremely high price-earnings ratio of 123.62. However, that figure is expected to drop down considerably as its restaurant group begin generating more sales. EAT's forward-price earnings ratio is projected to be 29.15, which is still high but is much more reasonable than its current value. 

As far as options are concerned, EAT's Schaeffer's Volatility Index (SVI) of 64% sits in just the 10th annual percentile, revealing low volatility expectations are being priced into near-term contracts -- a boon to potential premium buyers. Plus, the stock has consistently rewarded premium buyers over the past year, per its Schaeffer's Volatility Scorecard (SVS) reading of 95 out of a possible 100. This shows the equity has tended to make larger-than-expected moves on the chart, compared to what the options market has priced in.

J & J Snack Foods Corp. (NASDAQ:JJSF) is an American manufacturer and distributor of branded snack foods and frozen beverages. Products include a slew of childhood favorites Icee, Luigi’s Italian Ice, The Funnel Cake Factory Funnel Cakes, and Tio Pepe’s Churros.

So far in 2021, JJSF stock has seen little movement. The shares have traded between $150 and $160 for the last month, and are a ways from their January 2020 annual highs of $189.16.  

The past 12 months were not great for J & J Snack Foods. The company’s stock came crashing down after a massive bullish run that lasted well over a decade. Although the COVID-19 pandemic contributed greatly, of course, JJSF’s bearish form began before the pandemic hit, and was seemingly triggered by the company’s poor earnings performance. With JJSF earnings due out after the close on Monday, Jan. 25 , it's prudent to dig into previous earnings reports and their results.

 J & J Snack Foods stock beat expectations on just one of its earnings reports released in 2020. This resulted in post-earnings drops of 10.7% last January, and a 3.1% fall in late July. Overall, after the last eight reports, JJSF averages a post-earnings move of 4.6%, regardless of direction. This time around, the options market is pricing in a 4.6% move for the upcoming report.

 J & J Snack Foods last paid a quarterly cash dividend to stockholders of $0.575 per share of its common stock. JJSF also has a forward dividend of $2.30 and a forward dividend yield of 1.52%. JJSF have paid dividends to stockholders since 2010.

From a fundamental point of view, J & J Snack Foods stock is simply not an ideal investment at this time. JJSF has had stagnant revenue growth and is incredibly inconsistent with its top and bottom line. In addition, the company's net profits seem to be in a general state of decline over the past few years. The company’s annual net income is $20 million lower than it was in 2018. To top it all off, JJSF stock has an exaggerated price-earnings ratio of 158.29.