The shares of video-streaming service Roku Inc (NASDAQ:ROKU) are bounding higher this morning, up 4.2% at $221.48, on the back of several analyst bull notes. Specifically, Needham lifted its price target to a Street high of $255 from $190 -- a roughly 20% premium to last night's close. The analyst cited strong growth during the pandemic, driving higher advertising demands as well as monetization. Deutsche Bank also chimed in, lifting its price target to $235 from $185 -- marking the second highest estimate on Wall Street. 

Should these pre-market gains hold, ROKU could be ready to ring in its fourth consecutive day of all-time highs. The stock has been on a roll lately, with the recently supportive 10-day moving average pushing the equity past a ceiling at the $180 mark late last month, and the 40-day moving average catching pullbacks just below. For the year, ROKU is now up over 60%. 

Some members of the brokerage bunch are still on the fence about ROKU. Of the 18 in coverage, six still say "hold" or worse, compared to 14 "buy" or better ratings. What's more, the 12-month consensus price target of $179.79 is an 18.8% discount to last night's close. This could leave the door wide open for even more upgrades, should the security continue this upward trajectory. 

Options bulls are already on board, with 2.56 calls being picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), during the past 10 weeks. This ratio stands higher than 76% of readings from the past year, too, suggesting a healthier-than-usual appetite for long calls of late. 

For those wanting to speculate on the equity's next move, options look like a prudent play. This is per ROKU's Schaeffer's Volatility Index (SVI) of 55%, which sits in the lowest percentile of its annual range. This means option traders are pricing in relatively low volatility expectations at the moment. 

Twitter, Inc. (NYSE:TWTR) is a social media giant based out of San Francisco, California. Later this month, on October 29, the company is aiming to release their most recent quarterly financials and demonstrate an improvement over its incredibly poor revenue reports last quarter. 

Twitter stock on Tuesday scored a five-year high of $47.87. TWTR has done exceptionally well following its massive drop to $20.00 per share in March. The shares are up about 40% year-to-date and more than doubled off those March lows. Despite the company's recent uptrend, many investors still feel that the stock should be worth more than it has been this year. There is no denying that Twitter has not lived up to its potential, especially when compared to its major competitor, Facebook (FB), that has increased its stock price significantly. Does Twitter have time to redeem itself before losing investor confidence completely?

Digging into the financials shows Twitter's market cap is $36.28 billion and its current book value is $9.72 per share. The company has a price-to-book value of 4.60 and a trailing 12-month earnings per share (EPS) of -$1.58. In Twitter's next earnings announcement, the company is expected to report a positive EPS of $0.05.

The company's recent track record with earnings announcements is bleak, falling short of expectations in three of the last four earnings reports. Most recently, Twitter missed earnings by a massive margin of $1.39, reporting earnings of -$1.39 instead of the expected $0.00. Twitter has a forward price-earnings (P/E) ratio of 60.98 and a trailing P/E ratio standing at 21.91.

Twitter has grown its revenue only slightly on an annual basis for the last three years. Between 2016 and 2017, Twitter's revenues actually fell by 3.4%. The company's total expenses have been steadily growing while its revenue growth has been largely inconsistent on a quarterly basis. On the balance sheet, Twitter has $7.77 billion in cash and $4.13 billion in total debt. The company has $12.55 billion in total assets,$4.89 billion in total liabilities, and $7.66 billion in total equity on the balance sheet.

Net income is normally a bright spot for Twitter, with the company's net income growing massively and consistently since 2016. Case in point: Twitter's net income was -$456.87 million in 2016 compared to $1.47 billion in 2019. However, the net income growth streak broke in 2020. The company currently totes a trailing-twelve month net income of -$1.23 billion.

Without much doubt, Twitter stock is currently overvalued. However, that is the exact same sentiment that surrounded stocks like Tesla (TSLA) and Amazon.com (AMZN) before they took off. The major difference here is that Twitter has yet to find a way to turn its product into a resilient and growing business. Tesla and Amazon have both provided ample reasons for their large valuations with their accompanying rate of growth accomplished.

Twitter reportedly has 330 million monthly active users. Even so, the company has struggled to outgrow the approximate $3 billion in total revenue it seems to report every year for the past few years. The lack of revenue growth should raise eyebrows given how incredible the growth of the Twitter platform itself has been.

At this time, it is difficult to see any major growth opportunity for Twitter stock in the near-term. However, the company still has time to change their trajectory. Twitter's balance sheet is a real positive for the company, as the company currently has the ability to pay all of its debt and still have well over $3 billion in cash remaining. Twitter’s strong balance sheet buys the company time to modify its approach and/or business model to boost its stagnant advertising revenue channel. Overall, one will be hard-pressed to conclude, at this time, that Twitter is likely to see an increase in stock price without major business changes that allow the company to improve its revenue growth rate.

Stocks closed higher across the board yesterday after from U.S. President Donald Trump's called for additional financial support for airlines and, also, a second round of individualized stimulus checks. Wall Street bounced back from yesterday's drama surround Trump's announcement of a stalled stimulus package until after the election in November.

The Dow Jones Industrial Average (DJI - 28,303.46) gained 530.7 points yesterday. Meanwhile, the S&P 500 Index (SPX - 3,419.45) added 58.5 point for the day and the Nasdaq Composite (IXIC - 11,364.60) added on an even 210 points during yesterday's trading session. Breaking it's winning streak, the Cboe Volatility Index (VIX - 28.06) lost 1.4 point on Wednesday.

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Today's economic news calendar just has weekly jobless claims on the schedule. The earnings docket looks quite a bit more interesting, though, so we have rounded up today's highly-anticipated earnings announcements schedule for your convenience:

• Acuity Brands, Inc. (NYSE: AYI -- $113.26) provides lighting and building management solutions and services in North America and worldwide.
  • Acuity Brands will report its third-quarter earnings before the bell today.
• Carnival Corporation & Plc (NYSE: CCL -- $15.99) is a leisure travel company.
  • Carnival will report its fiscal second-quarter earnings before the bell today.
• Domino's Pizza, Inc. (NYSE: DPZ -- $431.05) is a pizza delivery company in the United States and worldwide.
  • Domino's will report its fiscal second-quarter earnings before the bell today.
• Helen of Troy Limited (NASDAQ: HELE -- $205.00) designs, develops, imports, markets, and distributes a portfolio of consumer products worldwide. HELE is currently up 28.2% year-over-year.
  • Helen of Troy will report its fiscal first-quarter earnings of 2021 before the bell today.

Now, here is a recap of how yesterday’s earnings reports played out compared to expectations:

• Lamb Weston Holdings, Inc. (NYSE: LW -- $70.16) produces, distributes, and markets value-added frozen potato products worldwide. Lamb Weston reported its fiscal fourth-quarter earnings yesterday before the bell.
  • Earnings per share were down 22.78% year over year to $0.61, which beat the estimate of $0.30. Revenue of $871.5 million declined by 11.88% year over year, which beat the Wall Street’s estimate of $869.22 million.

• RPM International, Inc. (NYSE: RPM -- $84.43) manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. RPM reported its fiscal fourth-quarter earnings yesterday before the bell.
  • Earnings per share were up 51.58% over the past year to $1.44, which beat the estimate of $1.19. Revenue of $1.71 billion rose by 9.10% from the same period last year, which beat the Wall Street’s estimate of $1.49 billion.

• Resources Connection, Inc. (NASDAQ: RGP -- $11.73) provides consulting services to business customers in North America, Europe, and the Asia Pacific. Resources Connection reported its fiscal fourth-quarter earnings after hours yesterday.
  • Earnings per share decreased 6.67% over the past year to $0.14, which beat the estimate of $0.07. Revenue of $147.35 million decreased by 14.45% from the same period last year, which missed the Wall Street’s estimate of $150.37 million.

Investors, keep an eye out for the monthly forecast from the United States Department of Agriculture tomorrow.

All earnings and economic dates listed on SchaeffersResearch.com are tentative and subject to change. Please check with each company's respective website for official reporting dates.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is one of the largest retail pharmacy chains in the U.S., as well as an international retail pharmacy and a pharmaceutical wholesale business. As the name would suggest, the company includes Walgreens, Boots, and Alliance Healthcare under its umbrella.

Last night, WBA closed at $35.95, significantly closer to its 52-week low of $33.88 than its 52-week high of $64.50. Walgreens' stock is down nearly 40% year-to-date, and has been trending downward for the last two years. However, as a prospective long-term investment, WBA stock has a lot to offer. The company will be looking to re-establish its value in the upcoming earnings announcement slated for before the open on October 15.

Walgreens has a market cap $31.15 with a book value per share of $23.83 and its MRQ price/book value is 1.46. The company sports a seemingly high trailing 12-month price-to-earnings ratio of 42.34, but a forward price-to-earnings ratio of just 7.04. Walgreens also has a trailing price-to-earnings ratio of 41.21.

Walgreens’ earnings per share (EPS) currently stands at $0.85 over the past 12 months. In the most recent quarterly financial report, Walgreens reported earnings of $0.83 per share, which was $0.34 less than the $1.17 that was expected. Walgreens has beat analyst expectations 50% of the time over the past 4 quarters (beating earnings projections twice and missing expectations twice, too). The speculation on upcoming earnings has Walgreens pegged to report an EPS of $0.96. Overall, Walgreens' earnings have demonstrated consistent growth on an annual basis for the past three years.

Aside from a notable drop in this year, Walgreens has only seen minor inconsistencies in its net income on an annual basis. The company’s increasing expenses have shown to be the largest obstacle to growth in total net income. Walgreens has maintained a positive net income this year despite the noted overall year-over-year decrease.

Walgreens Boots Alliance has $86.44 billion in total assets, with $777 million of that in cash and cash equivalents. Meanwhile, the company has $41.78 billion in debt and $65.12 billion in total liabilities. Walgreens’ has a total equity of $21.32 billion on its balance sheet. Further, the company has a forward dividend of $1.87 per year and a forward dividend yield of 5.11%. Walgreens paid $0.468 to investors in the most recent quarter.

During the worldwide uncertainty as the coronavirus pandemic rages on, Walgreens has not opted for the "safe route" of cutting dividend payments. Although this decision may be viewed negatively from an investor standpoint, Walgreens is demonstrating stability and longevity with this decision. The pharmacy giant is on pace to end the year in profitable territory. Unlike other similar companies who won’t be bottom-line profitable this year, Walgreens can afford to keep paying its dividend without looking desperate for investor interest.

Furthermore, with a forward dividend yield of 5.11% and a long-standing history of dividend growth, Walgreens stock offers one of the most secure and highest paying dividends when compared to all current big market cap companies. It also provides a very promising value given its price/book value of 1.46 and a forward p/e ratio of 7.04. Overall, WBA stock is an intriguing option worth considering for both value investors and dividend investors.

Fast food giant McDonald’s Corp (NYSE:MCD) has been steadily rising on the charts, now up 14% year-to-date. Furthermore, the equity has reclaimed its 20-day moving average, a significant trendline in the past, and one which has captured multiple pullbacks since mid-July. With that being said, now looks like an opportune time to bet on MCD’s next leg higher.

Currently, MCD’s 12-month consensus price target of $224 sits right in line with current levels, which may spur some price-target hikes moving forward that could push the stock higher. There is room for some upgrades as well, with seven of the 23 analysts in coverage at a "hold" rating.

The amount of pessimism in the options pits could also arise as a potential tailwind moving forward. MCD’s 10-day put/call volume ratio sits in the 73rd percentile of its annual range, suggesting a higher-than-usual appetite for puts as of late.

What’s more, options traders are pricing in relatively low volatility expectations at the moment, per the stock’s Schaeffer’s Volatility Index (SVI) of 23%, which sits higher than just 13% of all other annual readings. Plus, MCD’s Schaeffer’s Volatility Scorecard (SVS) ranks at a relatively high 80 out of 100, meaning the equity has tended to exceed these expectations during the past year.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this MCD 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 services.

Sorrento Therapeutics Inc (NASDAQ:SRNE) is making another run up the charts today, thanks to the biotech's strong third-quarter sales of its pain relief medication, ZTlido, which were up 26% from its second quarter and totaled $7.2 million. The company added that late-stage study results for another pain relief treatment, SP-102, will be released by the second quarter of next year. The equity is up 2.4% at $10.86 in response. 

SRNE has managed to dig itself out of penny stock territory this year, up over 213% year-to-date, and 496% year-over-year. This impressive rise hasn't come without some volatility, though. The security has seen several sharp spikes, and subsequent pullbacks, mostly due to updates in its experimental COVID-19 treatment. While Sorrento stock is still a ways away from its Aug. 8, five-year high of $19.39, the 120-day moving average served as a floor back in mid-September, while the 10-day looks to be providing more immediate support. 

There isn't a great deal of analyst coverage on Sorrento Therapeutics, though the three following the equity call it a "strong buy." What's more, the 12-month consensus price target of $24, is a whopping 120.2% premium to last night's close. 

Short sellers, on the other hand, have been piling on the stock, with short interest up 39.9% during the last two reporting periods. Should some of this positive price action convince shorts to change their tune and begin to jump ship, though, it could put some wind at the equity's back. Currently, the 75.11 million shares sold short make up a solid 35.1% of the stock's available float, and would take a little under two days to cover, at its average pace of trading. 

After Federal Reserve Chairman Jerome Powell sparked stimulus hopes yesterday in calling for additional financial aid, stocks dropped off a cliff after U.S. President Donald Trump announced that second stimulus negotiations will be postponed until after the November election. All three major inboxes closed out Tuesday in the red, with pressure from Big Tech stocks and stimulus-dependent airline names.

The Dow Jones Industrial Average (DJI - 27,772.76) fell 375.9 points on Tuesday. Meanwhile, the S&P 500 Index (SPX - 3,360.97) fell 47.7 points for the day yesterday, and the Nasdaq Composite (IXIC - 11,154.60) dropped 177.9 points. The Cboe Volatility Index (VIX - 29.48) tacked on 1.5 points for the day for its sixth-straight win.

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Investors and traders alike anxiously await the Fed's meeting minutes that are set to be released today. Crude oil inventory data is due out today as well. There are a small handful of companies entering the earnings confessional today, and we have gathered them below for your convenience.

• Lamb Weston Holdings, Inc. (NYSE: LW -- $70.16) produces, distributes, and markets value-added frozen potato products worldwide.

  - Lamb Weston will report its fiscal fourth-quarter earnings before the bell today.
  

• RPM International, Inc. (NYSE: RPM -- $84.43) manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. RPM is up 9.1% year-to-date.

  - RPM will report its fiscal fourth-quarter earnings before the bell today.
  

• Resources Connection, Inc. (NASDAQ: RGP -- $11.73) provides consulting services to business customers in North America, Europe, and the Asia Pacific.

  - Resources Connection will report its fiscal fourth-quarter earnings after the market closes today.

Now, here is a recap of how yesterday’s earnings played out compared to expectations:

• Paychex, Inc. (NASDAQ: PAYX -- $79.43) provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services. The company reported its fiscal fourth-quarter earnings before the bell yesterday.
  • Earnings per share decreased 11.27% year-over-year down to $0.63, beating the estimate of $0.55. Revenue decreased by 6.03% compared to the same period last year, beating Wall Street’s estimate of $895.38 million.

     

• Levi Strauss & Co. (NYSE: LEVI -- $14.74) operates as an apparel company. The company reported its fiscal first quarter earnings after the market closed yesterday.
  • Earnings per share decreased 74.19% year-over-year down to $0.08, beating the estimate of -$0.22. Revenue decreased by 26.54% compared to the same period last year, beating Wall Street’s estimate of $822.24 million.

The economic news calendar slows down tomorrow with just weekly jobless claims on the schedule. The earnings docket looks a bit more interesting, though, with Acuity Brands (AYI), Delta Air Lines (DAL), and Domino's Pizza (DPZ) set to report earnings. Keep an eye out for the monthly forecast from the United States Department of Agriculture on Friday, October 9.

All earnings and economic dates listed on SchaeffersResearch.com are tentative and subject to change. Please check with each company's respective website for official reporting dates.