Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Dec 1, 2020 at 2:46 PM
  • Buzz Stocks

Drilling down today's options activity, 215,000 calls have crossed the tape, which is seven times the average intraday amount. Most popular is the January, 2021 100-strike call, followed by the 12/4 155 strike-call, with new positions currently being opened at both.

 
Published on Dec 1, 2020 at 2:12 PM
  • Buzz Stocks

Oil and gas giant Exxon Mobil Corporation (NYSE:XOM) operates under four brands across the world: Esso, Exxon, Mobil, and ExxonMobil Chemical. The stock has been one of the biggest dividend stocks since 1911 and has maintained its high-yielding dividend into 2020. However this decision could prove incredibly costly as the company seems to be in clear need of capital. The company has taken major losses in revenue and net income over the past two years. Specifically, 2020 has dealt Exxon Mobil the damage with a reported revenue loss of $50 billion and a reported net income loss of $11 billion, primarily as a result of the pandemic.

Over the past month, Exxon Mobil has announced plans to reduce staffing in the U.S. and Canada. In addition, Exxon Mobil has taken on a massive $68.8 billion in debt and is only left with $8.83 billion in cash to back the company.

Exxon Mobil stock has been one of the biggest losers of 2020 to date. Exxon Mobil stock is currently down 45% year-to-date. And while the shares have bounced off the $30 level twice in 2020, the 200-day moving average has contained the 12% quarterly gain.
 
XOM Stock Chart
 
XOM may be presenting investors with an amazing deal after hitting its bottom. The company’s focus on reducing expenses may be just what it needs to continue recovering. At Exxon Mobil's current stock price, if Exxon Mobil can raise its net profits back up to just 60-80% of what it produced in prior years, Exxon Mobil stock would be trading at a price-earnings ratio around 10.00-15.00. This is in stark contrast to its present price-earnings ratio of 49.01.
 
If Exxon Mobil can successfully reduce costs and keep paying its investors, XOM stock should see decent growth in the future. Overall, Exxon Mobil stock comes with many risks, but will likely see its revenue and net gains recover sometime in 2021. Furthermore, the company’s dedication to maintaining its dividend means Exxon Mobil is also a good candidate for high-yielding dividend returns.


Further, if you prefer options over stocks, Exxon Mobil stock is currently rocking a rank of 85 out of 100 on the Schaeffer's Volatility Scorecard (SVS). A high SVS reading indicates that XOM stock has consistently delivered bigger returns than its options implied volatility (IV) levels have predicted, meaning it may be a strong candidate for premium-buying strategies going forward.89

Published on Nov 19, 2020 at 11:22 AM
Updated on Dec 1, 2020 at 2:06 PM
  • Buzz Stocks
 
Published on Dec 1, 2020 at 10:59 AM
Updated on Dec 1, 2020 at 2:06 PM
  • Buzz Stocks
 
Published on Dec 1, 2020 at 11:57 AM
  • Analyst Update
 
Published on Dec 1, 2020 at 11:33 AM
  • Buzz Stocks

Why PayPal Stock Could Be a Solid Pick for Investors

by Schaeffer's Digital Content Team

Online payment powerhouse PayPal Holdings, Inc.'s (NASDAQ:PYPL) beginnings date back to 1998. Today, the company is valued at more than $250 billion and owns several major business like Xoom Corporation, Honey, Venmo, and Braintree. Most recently, PayPal has delved into the world of cryptocurrency, which is a hot territory for investors. PayPal announced on Oct. 21 that the platform would allow its users to buy, hold and sell cryptocurrency directly from the user's PayPal account.

In general, PayPal stock has performed phenomenally since the start of this year. PayPal stock is up a massive 95% year-to-date and 161% from its 52-week low of $82.07. PayPal stock is currently trading just off of its record-high of $216.07.

PayPal stock is a promising investment from a growth and fundamentals point of view. The company continues to grow its revenue by significant margins every year. PayPal has increased its revenue by almost $8 billion since 2016. With the exception of 2020, PayPal Holdings has also experienced significant growth to the bottom line for many consecutive years. On top of the steady revenue and net profit growth, the company continues to expand with announcements of promising partnerships and acquisitions. 

PYPLChartSinceJan

While PayPal isn't expected to release earnings again until early February of 2021, investors should know how PayPal stock has fared over the past 12 months. The pandemic has uniquely impacted almost every stock, so it's always critical to examine how a stock performs in extreme markets before investing capital. PayPal has beat expectations on three of its four most recent earnings reports.

In the fourth quarter of 2019, pre-pandemic, PayPal beat expectations by $0.03. The company reported an earnings per share (EPS) of $0.86 for PYPL. In the first quarter of 2020, pre-pandemic as well, the company dropped its EPS down to $0.66 for PayPal, and also missed expectations by a margin of $0.09. In the heat of the COVID-19 pandemic, PayPal actually reported an increase in its EPS for the second quarter of 2020. The company reported an EPS of $1.07 for PYPL stock and beat expectations by a big margin of $0.19. Most recently, when reporting on the third quarter of 2020, PayPal beat its earnings target again, this time by $0.13 (14%). The company maintained their EPS of $1.07 from the previous quarter.

Further, PayPal stock sports a Schaeffer's Volatility Scorecard (SVS) of 90 out of 100, indicating the equity is boon for options traders strategies going forward. Overall, the company’s stock should continue growing for many years if it continues to innovate like it’s done thus far and its dive into cryptocurrency really pays off.

Published on Nov 30, 2020 at 11:09 AM
Updated on Dec 1, 2020 at 10:09 AM
  • Buzz Stocks
 
Published on Dec 1, 2020 at 10:03 AM
  • Buzz Stocks

The shares of clothing company Children's Place Inc (NASDAQ:PLCE) are making a comeback today, up 8.1% at $46.47 at last check, following a price-target hike from Wedbush to $48 from $32. The security is now on track for its highest close in nearly five months. 

In fact, PLCE has enjoyed an impressive climb lately -- now more than double its late-August dip below the $20 region. Support at the 10-day has helped guide the equity higher, while former pressure at the 100-day captured a brief pullback in early November. Plus, Children's Place  stock just came off its best month since 2003, tacking on 70%. 

Should the stock continue its climb, other members of  the brokerage bunch could follow Wedbush's lead. Currently, just two analysts in coverage call it a "strong buy," compared to  five "hold" or worse ratings. Plus, coming into today, the 12-month consensus price target of $40.89 was a 4.9% discount to last night's close. 

A further unwinding of short interest could put some wind at PLCE's back, too. While short interest fell 18.2% during the last two reporting periods, the 5.3 million shares sold short still make up 38.7% of the stock's available float. This means it would take almost four days to  buy back these bearish bets, leaving plenty of room for a short squeeze to propel the shares higher.

 

Published on Dec 1, 2020 at 9:58 AM
  • Intraday Option Activity
  • Buzz Stocks
  • Analyst Update
Zoom earned 99 cents per share on $77 million in revenue, and has experienced an incredible year due to the pandemic forcing work and schooling to be done remotely; but investors expect the company's accelerating revenue growth to moderate quarter-over-quarter.
Published on Dec 1, 2020 at 7:22 AM
  • Buzz Stocks

Today's Stock Market News & Events: 12/1/2020

by Schaeffer's Digital Content Team

After an incredible month of gains in November, stocks fell as investors looked to cash in yesterday. Yesterday's market sentiment was also impacted by the Trump administration's threats to blacklist Chinese chipmaker SMIC, alongside CNOOC, an offshore oil and gas producer. The Dow rose over 11.8% for the month of November, logging its best since 1987. Similarly, the S&P 500 and the Nasdaq both logged wins for the month at 10.8% and 11.9%, respectively. The Dow Jones Industrial Average (DJI - 29,638.64) shed 271.7 points on the last day of the month yesterday. The S&P 500 Index (SPX - 3,621.63) fell 16.7 points yesterday while the Nasdaq Composite (IXIC - 12,198.74) lost 7.1 points during yesterday's trading session. The Cboe Volatility Index (VIX - 20.57) fell 0.3 point on Monday, and dropped 45.9% in the month of November.

Today will be packed to the brim, so buckle up. Markit manufacturing PMI, ISM Manufacturing Index, construction spending, and motor vehicle sales data are all set to be released on the first day of December. We are also set to see a handful of quarterly earnings reports from companies including Salesforce.com (CRM), NetApp (NTAP), and At Home Group (HOME).

For your convenience, we have rounded up the companies slated to release earnings today, December 1:

Bank of Montreal (NYSE:BMO -- $72.72)
provides diversified financial services primarily in North America. Bank of Montreal will report its fourth-quarter earnings before the bell today.

The Bank of Nova Scotia (NYSE:BNS -- $48.76) provides various banking products and services. Bank of Nova Scotia will report its fourth-quarter earnings before the bell today.

Momo, Inc. (NASDAQ:MOMO -- $14.38) operates a mobile-based social and entertainment platform in the People's Republic of China. MOMO has decreased by 15.4% year-to-date. Momo will report its third-quarter earnings before the bell today.

At Home Group, Inc. (NYSE:HOME -- $18.94) operates home decor superstores. At Home Group will report its third-quarter earnings of fiscal 2021 after the market closes today.

Hewlett Packard Enterprise Company (NYSE:HPE -- $11.04) provides solutions that allow customers to capture, analyze, and act upon data from edge to cloud. Hewlett Packard Enterprise will report its third-quarter earnings after the market closes today.

NetApp, Inc. (NASDAQ:NTAP -- $53.31) provides software, systems, and services to manage and share data on-premises, and private and public clouds. NetApp will report its second-quarter earnings of fiscal 2021 after the market closes today.

Salesforce.com, Inc. (NYSE:CRM -- $246.34) provides software, systems, and services to manage and share data on-premises, and private and public clouds. Salesforce will report its third-quarter earnings after the market closes today.

Trip.com Group Limited (NASDAQ:TCOM -- $33.59) operates as a travel service provider. Trip.com Group will report its third-quarter earnings after the market closes today.

Veeva Systems, Inc. (NYSE:VEEV -- $276.87) provides cloud-based software for the life sciences industry. Veeva Systems will report its third-quarter earnings after the market closes today.

Here is a quick recap of how yesterday’s earning calls played out:


Adient plc (NYSE:ADNT -- $31.98)
designs, manufactures, and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks. Earnings per share were up 82.54% year over year to $1.15, which beat the estimate of $0.71. Revenue of $3,597,000,000 declined by 8.26% from the same period last year, which missed the estimate of $3,610,000,000.

Autohome, Inc. (NYSE:ATHM -- $7.40) operates as an online destination for automobile consumers in the People's Republic of China. Earnings per share were up 35.37% year over year to $1.11, which beat the estimate of $1.00. Revenue of $341,047,000 rose by 12.33% year over year, which missed the estimate of $344,420,000.

New Jersey Resources Corporation (NYSE:NJR -- $36.51) provides regulated gas distribution, and retail and wholesale energy services. Earnings per share rose 96.55% year over year to $0.57, which were in line with the estimate of $0.57. Revenue of $400,044,000 declined by 16.50% from the same period last year, which missed the estimate of $701,520,000.

Zoom Video Communications, Inc. (NASDAQ:ZM -- $471.61) provides a video-first communications platform. The company reported adjusted quarterly earnings of 99 cents per share, which beat the analyst consensus estimate of 76 cents by 30.26%. The company reported quarterly sales of $777.20 million, which beat the analyst consensus estimate of $693.95 million by 12.00%.

Now, looking ahead to tomorrow, it will be a slower day on Wednesday. Investors will still have the latest ADP employment report to look forward to. The Federal Reserve's "Beige book" is also on tap. All earnings and economic dates listed here are tentative and subject to change. Please check with each company's respective website for official reporting dates.

Published on Nov 30, 2020 at 3:09 PM
  • Quantitative Analysis

 

 
Published on Nov 30, 2020 at 2:46 PM
  • Buzz Stocks
Today's news has INFO's typically quiet options pits buzzing, with 4,048 calls and 997 puts across the tape so far, 23.5 times the usual daily volume already. The December 110 call is the most popular, followed by the 100 call in the same session, with new positions being opened at both. 

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