Macy’s, Inc. (NYSE:M) used to be one of the biggest department store companies in the country, but been been notably struggling for survival this year in part due to the COVID-19 outbreak. Macy’s will be looking to show some signs of recovery as it reports its fourth-quarter earnings next week on November 19 before the open. The extent of Macy's net loss over the past 12 months is almost equal to the company's total net profits accumulated between 2017 and 2020. Although many investors have written off most "mall stocks" as doomed for inevitable bankruptcy, there is a good chance that there will be some to survive. Those companies that do will likely see a major stock price correction to the upside, and Macy’s could very well be one of those companies.

Macy's stock is currently down 56% year-to-date, and off approximately 60% from its 52-week high of $18.57 set on Jan. 8 before the pandemic. However, M has bounced back roughly 69% from its 52-week low of $4.38 from April 2.

More broadly speaking, it's been call buyers who've been busy in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 5.87 calls for each put in the past 10 sessions.

Echoing this is the security's Schaeffer's put/call open interest ratio (SOIR) of 0.70, which is ranked in the 2nd annual percentile -- meaning short-term speculators are more call-skewed than usual. Considering M is heavily shorted -- more than 40% of the stock's float is dedicated to these bearish bets -- it's possible some of these out-of-the-money calls are being used as an options hedge.

Macy’s has beaten expectations on three of its four most recent earnings reports. In the fourth quarter of 2019, Macy’s beat expectations by $0.07. In the following quarter, the first quarter of 2020, Macy's increased its EPS to $2.12, beating expectations by $0.16. In its most recent quarterly report for the company's fiscal third quarter of 2020, Macy's beat its target by $0.96. The company reported smaller-than-expected loss -$0.81 over the expected EPS of -$1.77.

It should be noted for dividend investors that Macy’s officially suspended its dividend for the back-half of 2020. The company has managed to maintain consistent revenue growth over the past few years, excluding 2020, which could be a sign of a loyal customer base. Macy's balance sheet isn’t looking great right now, but it is in a much better position as compared to some of its "mall stock" competitors. One of the keys for Macy’s will be recovering total revenue as quickly as possible without accruing much more on the debt side.

Overall, Macy's is no sure-thing for investors at this time. Recovery of Macy's stock price depends greatly on a large scale reopening of the U.S. economy. Hopes of an earlier-than-expected vaccine might be enough to get Macy's stock trending upward in the correction direction.

Jack in the Box Inc. (NASDAQ:JACK) is a popular American fast-food restaurant chain company was founded in San Diego, but has since expanded its locations to 21 additional U.S. states. Jack in the Box is due to report on its third quarter earnings after the close on November 18. JACK is only up 6% year-to-date, but has more than quadrupled off its 52-week low of $16.81 on --you guessed it -- March 18. 

The shares' recovery culminated in an annual high of $$91.52 on Nov. 9. A short squeeze could help JACK clear this new hurdle. Short interest has begun to taper off, yet the 2.98 million shares sold short accounts for a healthy 13.5% of the stock's total available float. At the equity's average pace of trading, it would take almost six days for shorts to buy back their bearish bets.

Jack in the Box has beat earnings expectations on only one of its four most recent earnings reports. Looking back to 2019, Jack in the Box missed third quarter expectations by $0.01. Expectations were once again missed when Jack in the Box reported on the fourth quarter of 2019.This time, the company swung and missed by a bigger margin of $0.21 per share.

When reporting on the first quarter of 2020, Jack in the Box reported a drop in EPS down to $0.50, while missing expectations (for the third time in a row) by $0.16. Most recently, in the company's second quarter report this year, Jack in the Box beat its earnings target by 33%. Jack in the Box reported an EPS of $1.37 instead of the expected EPS of $1.03. As for the company's upcoming earnings report slated for next week, Jack in the Box is expected to announce an EPS of $1.13.

Jack in the Box stock has a forward dividend of $1.60 and a dividend yield of 1.96%. The last dividend it paid was for $0.40 per share. The company started paying dividends in 2014. It has since raised its dividend twice, both time by $0.10.

Based on just our fundamental analysis, JACK is waving nothing but red flags for investors. The company's earnings history is one clear sign of inconsistency in growth. A look into the Jack in the Box's reported revenue and net income over the past few years reveals a similar theme of unpredictability. The company's balance sheet is possibly Jack in the Box’s weakest point. This is a major issue when combined with the fact that the company has continuously struggled to achieve consistent revenue growth.  

We thank and salute all of our veterans, past and present, who have served our country so bravely.We hope that you were able to enjoy a day of appreciation from all Americans yesterday in observance of Veteran's Day. The stock market stayed relatively quiet yesterday thanks to Veteran's Day, though sentiment remains strong following Pfizer (PFE) and BioNTech's (BNTX) upbeat vaccine news on Monday. Investors continued to ditch stay-at-home stocks in favor of stocks within sectors hinging more on a recovering economy. This caused the Dow to stumble in for a loss, while the S&P 500 and the Nasdaq both recovered from their losses during Tuesday's trading session.

The Dow Jones Industrial Average (DJI - 29,397.63) fell 0.08% for the day on Tuesday. The S&P 500 Index (SPX - 3,572.66) added 0.8% yesterday and the Nasdaq Composite (IXIC - 11,786.43) rose 2% for the day. The Cboe Volatility Index (VIX - 23.45) lost 5.4% for the day yesterday.

ICYMI yesterday, don't make the mistake of missing these actionable trading insights again today:

• A technical deep-dive into Lyft stock post-earnings
• How election outcomes are impacting United Healthcare stock
• AT&T stock dropped on reports of layoffs
• Intriguing play for options bulls: Advanced Micro Devices stock
• Datadog stock slipped despite a Q3 earnings beat
• General Electric stock slips following ended initiative

Does it seems as though everything for the week will be packed into today? It is. Initial and continuing jobless claims are due out today. Additionally, there's the core consumer price index (CPI) and federal budget data set to be released as well. Earnings will come rolling in for this week's quarterly report frenzy, featuring Wix.com (WIX), Applied Materials (AMAT), and Walt Disney (DIS).

For your convenience, we have rounded up the companies slated to release earnings today, November 12:

Brookfield Asset Management, Inc. (NYSE:BAM -- $37.70) engages in the management of public and private investment products and services. Brookfield Asset Mgmt will report its third-quarter earnings before the bell today.

Edgewell Personal Care Company (NYSE:EPC -- $32.38) engages in manufacturing and marketing of personal care products. EPC stock has dropped 7.4% year-to-date. Edgewell Personal Care will report its fourth-quarter earnings before the bell today.

Endava plc (NYSE:DAVA -- $68.52) provides technology services for clients in the consumer products, healthcare, logistics, and retail verticals. Endava will report its first-quarter earnings of 2021 before the bell today.

Energizer Holdings, Inc. (NYSE:ENR -- $47.18) manufacturers and markets batteries and lighting products. Energizer will report its fourth-quarter earnings before the bell today.

GoodRx Holdings, Inc. (NASDAQ:GDRX -- $51.10) owns and operates a prescription drug price comparison platform. GoodRx will report its third-quarter earnings before the bell today.

Himax Technologies, Inc. (NASDAQ:HIMX -- $51.10) provides display imaging processing technologies. HIMX is currently up by 46.0% year-over-year. Himax Technologies will report its third-quarter earnings before the bell today.

InMode Ltd. (NASDAQ:INMD -- $43.60) designs, develops, manufactures and markets minimally-invasive aesthetic medical products. InMode will report its third-quarter earnings before the bell today.

Meritor, Inc. (NYSE:MTOR -- $27.98) engages in the design, production, and trade of integrated systems, modules, and components to original equipment manufacturers. Meritor will report its fourth-quarter earnings before the bell today.

NICE Ltd. (NASDAQ:NICE -- $246.00) provides enterprise software solutions worldwide. NICE stock is trading up 6.5% year-to-date. NICE will report its third-quarter earnings before the bell today.

Nova Measuring Instruments Ltd. (NASDAQ:NVMI -- $60.91) designs, develops, produces, and sells process control systems used in the manufacture of semiconductors. Nova Measuring will report its third-quarter earnings before the bell today.

Pinduoduo, Inc. (NASDAQ:PDD -- $111.46) operates an e-commerce platform in the People's Republic of China. PDD stock is up 89.1% year-to-date. Pinduoduo will report its third-quarter earnings before the bell today.

Sally Beauty Holdings, Inc. (NYSE:SBH -- $10.82) operates as a specialty retailer and distributor of professional beauty supplies. Sally Beauty will report its third-quarter earnings before the bell today.

Schrodinger, Inc. (NASDAQ:SDGR -- $51.43) provides computational platform to accelerate drug discovery and materials design. Schrodinger will report its third-quarter earnings before the bell today.

SFL Corporation Ltd. (NYSE:SFL -- $7.68) engages in the ownership, operation, and chartering out of vessels and offshore related assets. SFL will report its third-quarter earnings before the bell today.

SSR Mining, Inc. (NASDAQ:SSRM -- $18.12) engages in the acquisition, exploration, development, and operation of precious metal resource properties. SSR Mining will report its third-quarter earnings before the bell today.

Stratasys Ltd. (NASDAQ:SSYS -- $14.88) provides 3D printing and additive manufacturing solutions for individuals, businesses, and enterprises. SSYS stock is down 18.8% year-over-year. Stratasys will report its third-quarter earnings before the bell today.

Teekay LNG Partners L.P. (NYSE:TGP -- $12.06) provides marine transportation services focusing on liquefied natural gas (LNG) and liquefied petroleum gas (LPG). TGP stock has remained essentially flat year-over-year. Teekay LNG Partners will report its third-quarter earnings before the bell today.

Teekay Tankers Ltd. (NYSE:TNK -- $11.09) provides marine transportation services to oil industries. TNK stock is down 9.2% year-over-year. Teekay Tankers will report its third-quarter earnings before the bell today.

Transdigm Group Incorporated (NYSE:TDG -- $560.81) designs, produces, and supplies aircraft components. Transdigm Group will report its fourth-quarter earnings before the bell today.

Tufin Software Technologies Ltd. (NYSE:TUFN -- $7.33) develops, markets, and sells software-based solutions. Tufin Software will report its third-quarter earnings before the bell today.

Wix.com Ltd. (NASDAQ:WIX -- $269.78) develops and markets a cloud-based platform that enables anyone to create a website or web application. WIX stock is up 29.2% year-to-date. Wix.com will report its third-quarter earnings before the bell today.

Algonquin Power & Utilities Corp. (NYSE:AQN -- $16.38) engages in the manufacture and distribution of atmospheric gases. Algonquin Power & Utilities will report its first-quarter earnings of 2021 after the market closes today.

American Well Corporation (NYSE:AMWL -- $27.01) provides a telehealth application that connects and enables providers, insurers, patients, and innovators. American Well will report its third-quarter earnings after the market closes today.

Applied Materials, Inc. (NASDAQ:AMAT -- $71.16) provides manufacturing equipment, services, and software. Applied Materials will report its fourth-quarter earnings after the market closes today.

Cisco Systems, Inc. (NASDAQ:CSCO -- $39.33) designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry. Cisco will report its first-quarter earnings of 2021 after the market closes today.

Digi International, Inc. (NASDAQ:DGII -- $17.66) provides Internet of Things connectivity products, services, and solutions. Digi International will report its third-quarter earnings after the market closes today.

Dillard's, Inc. (NYSE:DDS -- $46.02) operates as a fashion apparel, cosmetics, and home furnishing retailer. Dillard's will report its third-quarter earnings after the market closes today.

Dolby Laboratories, Inc. (NYSE:DLB -- $84.03) creates audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices. Dolby Laboratories will report its fourth-quarter earnings after the market closes today.

Farfetch Limited (NYSE:FTCH -- $42.59) engages in the provision of technology platform for the luxury fashion industry. Farfetch will report its third-quarter earnings after the market closes today.

Globant S.A. (NYSE:GLOB -- $186.73) operates as a technology services company worldwide. Globant will report its third-quarter earnings after the market closes today.

Inari Medical, Inc. (NASDAQ:NARI -- $77.19) is a commercial-stage medical device company. Inari will report its third-quarter earnings after the market closes today.

Jamf Holding Corp. (NASDAQ:JAMF -- $33.87) engages in the provision of Apple-focused device management solution. Jamf Holding will report its third-quarter earnings after the market closes today.

Palantir Technologies, Inc. (NYSE:PLTR -- $15.96) builds and deploys software platforms for the intelligence community. Palantir Technologies will report its third-quarter earnings after the market closes today.

Unity Software, Inc. (NYSE:U -- $105.58) operates a real-time 3D development platform. Unity Software will report its third-quarter earnings after the market closes today.

The Walt Disney Company (NYSE:DIS -- $137.82) operates as an entertainment company worldwide. Walt Disney will report its third-quarter earnings after the market closes today.

And a quick recap of how yesterday’s earning reports compared to expectations:

Air Products and Chemicals, Inc. (NYSE:APD -- $309.97) provides atmospheric gases, process and specialty gases, equipment, and services worldwide. Earnings per share fell 3.52% year over year to $2.19, which missed the estimate of $2.21. Revenue of $2,320,000,000 higher by 1.62% year over year, which beat the estimate of $2,270,000,000.

DouYu International Holdings Limited (NASDAQ:DOYU -- $13.61) operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming in China. Earnings per share were up 50.00% year over year to $0.06, which missed the estimate of $0.09. Revenue of $373,276,000 rose by 43.04% from the same period last year, which missed the estimate of $381,960,000.

HUYA, Inc. (NYSE:HUYA -- $19.91) operates game live streaming platforms in the People's Republic of China. Earnings per share increased 83.33% year over year to $0.22, which were in line with the estimate of $0.22. Revenue of $414,581,000 rose by 30.82% year over year, which missed the estimate of $435,870,000.

Atmos Energy Corporation (NYSE:ATO -- $102.45) engages in the regulated natural gas distribution, and pipeline and storage businesses. Earnings per share were up 8.16% over the past year to $0.53, which beat the estimate of $0.51. Revenue of $474,914,000 higher by 7.04% year over year, which missed the estimate of $603,470,000.

Enersys (NYSE:ENS -- $83.08) manufactures, markets, and distributes industrial batteries. Earnings per share fell 18.70% year over year to $1.00, which beat the estimate of $0.98. Revenue of $708,400,000 decreased by 7.05% year over year, which missed the estimate of $723,610,000.

Hillenbrand, Inc. (NYSE:HI -- $33.15) operates as a diversified industrial company. Earnings per share increased 21.05% year over year to $0.92, which beat the estimate of $0.56. Revenue of $693,700,000 up by 42.80% year over year, which beat the estimate of $620,380,000.

SpartanNash Company (NASDAQ:SPTN -- $18.50) distributes and retails grocery products. Earnings per share increased 133.33% year over year to $0.70, which beat the estimate of $0.62. Revenue of $2,061,000,000 up by 3.05% from the same period last year, which missed the estimate of $2,140,000,000.

It's Friday the 13th, tomorrow! To round things up this week, tomorrow's trading session will feature the producer price index (PPI) and consumer sentiment data on the stock market stage. DraftKings (DKS) will enter the earnings confessional with a few other companies, too, before the market opens

 

Semiconductor stalwart Advanced Micro Devices, Inc. (NASDAQ:AMD) is bouncing off its 100-day moving average, which previously served as a springboard to a huge rally back in July. With additional support emerging at the $100 billion market cap level, there is reason to believe AMD has room to run on the charts.

Short interest has fallen off a cliff, down 80% in the last 12 months. Continued short covering could serve as a tailwind for the equity. There also looks to be massive upgrade potential toward the chip stock. This is per the 11 of 25 covering analysts sporting a tepid "hold" or worse recommendation. Plus, the consensus 12-month price target of $87.57 is a slim 2.7% premium from its current perch.

Options are certainly the route, with premium affordably priced in a post-earnings volatility crush. The stock's Schaeffer's Volatility Index (SVI) of 46%, which sits higher than just 11% of all other annual readings. Plus, AMD's Schaeffer's Volatility Scorecard (SVS) ranks at 76 out of 100, meaning the security has tended to exceed these expectations during the past year -- a boon for premium buyers.

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

Although Home Depot, Inc. (NYSE:HD) only operates in the U.S., Canada, and Mexico, it is still the largest home improvement company in the world. Home Depot will be reporting its fiscal fourth quarter earnings next week on November 17, before the open. HD has gained 26% year-to-date, and has more than doubled since bumping into its 52-week low of $140.63 on March 18. A post-earnings pop next week will be needed though, for the shares to take aim once more at their Aug. 27 52-week high of $292.95.

Home Depot has beat expectations on four out of its five most recent earnings reports. In the fiscal fourth quarter of 2019 Home Depot beat expectations by $0.01, reporting an EPS of $2.53. According to the company's fiscal first quarter of 2020, Home Depot again beat expectations. Though Home Depot reported a drop in its EPS to $2.28, the company beat earnings expectations by a margin of $0.18 per share. Following its three earnings wins, Home Depot posted an earnings miss for its fiscal second-quarter of 2020. Home Depot's reported EPS was dropped to $2.08 and the company missed expectations by $0.19.

Most recently for the fiscal third-quarter of 2020, Home Depot beat its target by 8%. The company reported an earnings per share (EPS) of $4.02 instead of the expected EPS of $3.71. As for the company's upcoming earnings report next week, Home Depot is expected to announce an EPS of $2.99 for its fiscal fourth quarter

An unwinding of pessimism in the options pits could also push the security higher. This is per HD's Schaeffer's put/call open interest ratio (SOIR) of 1.18, which sits in the elevated 86th percentile of its annual range. This suggests short-term option traders have rarely been more put-biased.

What's more, options are an intriguing route. That's because even with earnings looming, HD's Schaeffer's Volatility Index (SVI) of 33%, which sits higher than just 18% of readings from the past 12 months. This implies that options players are pricing in relatively low volatility expectations at the moment.

 HD has a forward dividend of $6.00 and a dividend yield of 2.22%. The last dividend the company paid was $1.50 per share. Home Depot has continued to grow its dividend at a decent rate since 1987.

Home Depot continues to demonstrate consistent revenue growth and net profits increases year after year, and the company shows no fundamental signs of wavering. However, investors should mind their expectations for how much stock growth the company has in it from now. With a price-earnings ratio of 25.24, Home Depot stock already trades at a high price. Overall, HD offers the high returns as a dividend play and less as a long-term stock investment targeting growth.