Since September 2019, computer software concern Nuance Communications Inc. (NASDAQ:NUAN) had been steadily climbing up the charts, before the COVID-19 pandemic took its hit on the market. Nevertheless, the stock remains up roughly 94% year-to-date. That being said, now looks like an opportune time to bet on NUAN's next leg higher.

Tailwinds could come from a shift in analyst attention. NUAN's 12-month consensus price target of $34.86 is roughly a 1% discount to the stock's current perch, which may spur some price-target hikes moving forward and ultimately push NUAN even higher.

A short squeeze could create additional upside for the equity as well. Short interest spiked to a multi-year high of 16.1% in the most recent reporting period, and the 19.93 million shares sold make up about 7% of the stock's available float. At the security's average pace of trading, it would take more than a week to buy back these bearish bets; ample amounts of buying power that can hit the market and fuel an unwind.

The amount of pessimism in the options pits could also give the security a boost, should it begin to unwind. This is per NUAN's Schaeffer's put/call open interest ratio (SOIR) of 1.21, which sits in the 98th percentile of its annual range -- meaning short-term options traders have rarely been more put-biased.

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 37%, which sits higher than just 28% of all other annual readings. Plus, NUAN's Schaeffer's Volatility Scorecard (SVS) ranks at a high 96 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 NUAN 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.

Nordstrom, Inc. (NYSE:JWN) is a luxury department store based in the US. The company’s primary industry competitors include Macy (NYSE:M), Dillard’s (NYSE: DDS), and Kohl’s (NYSE:KSS). Nordstrom and its competitors have all seen drastic decreases to their stock price in 2020. Without a doubt, department stores in general have been heavily impacted by the coronavirus pandemic. Many have already filed for bankruptcy. Others are still at risk of it and, from the current stance on Wall Street, many think Nordstrom is on the brink. JWN has fallen more than 70% since its highs earlier this year. JWN shares currently sit at a price comparable to share price in 2008. Could Nordstrom still very well be a buying opportunity for investors? Is it time to buy the dip?

Nordstrom sports a market cap of $1.87 billion along with a book value of $1.11 per share. The company's price/book value is 10.95. Further, Nordstrom  has a forward p/e (price-earnings ration) of 8.77 and a 12-month trailing p/e of 9.24. Recently, analysts have given Nordstrom a 12 month target estimate of $18.17 which is a 52% increase from JWN's current stock price.

Nordstrom has missed expectations in three of the past four quarterly earnings reports. The retailer's biggest whiff came when reporting earnings for the company's fiscal second quarter of 2020, relaying an when it reported a loss of $3.33 as a result of the lockdowns. Analyst expectations were missed by a whopping $2.26. Analysts expect that Nordstrom will improve their EPS by $1.56, translating to an expected EPS of -$0.06. The company has a trailing twelve-month EPS of -$2.93,significantly stronger than the -$11.83 its primary competitor, Macy's, currently has.

Nordstrom has been bottom-line profitable for the last four years. The company has demonstrated consistent net income and total revenue, with no major increases or decreases aside from this year. Over the last two quarters this year, the company has seen a significant decrease in overall revenue, falling to less than half of what was produced in the fourth quarter of 2019. The company has gone from consistent profitability to sliding into the red at the bottom line over the last 6 months.

According to the balance sheet, Nordstrom currently has $9.737 billion in total assets. The company's total liabilities are valued at $8.76 billion, and total equity is valued at $979 million.

Although it is widely known that most companies in the department store and retail sectors are priced for bankruptcy, there will undoubtedly be a few companies that pivot, survive, and recover from current outrageously low share prices. From the view on "Main Street," Nordstrom has everything it should require to make a strong comeback. The company caters mostly to higher-spending customers, a demographic likely to be least affected financially by the pandemic and shutdowns.

Further, and this is where Nordstrom really sets themselves apart from the competition, the company made the decision to not reduce their inventory at the time around which the public (and potential customers) was emerging from quarantine. As long as Nordstrom was able to successfully move this inventory post-quarantine, the company may be in line for a much quicker recovery than its competition. Holiday shopping is just around the corner, providing hope for a revenue upswing through the end of 2020. If Nordstrom is able to report a profit for the fourth quarter of 2020, JWN shares are positioned to soar in the short term. 

The biggest concern for investors in Nordstrom, or any department store or retailer, is the potential for further lockdowns and quarantines. A resurgence in coronavirus cases would be detrimental for Nordstrom's revenue. Outside of the uncertainty of the ongoing coronavirus pandemic, the company has the potential to, at a minimum, double in stock price in the coming months.

The Dow Jones Industrial Average (DJI - 28,645.66) rose 215.6 points, or 0.8% yesterday. Walmart (WMT) finished yesterday with a 6.3% rise, pacing the 17 winners. Walgreens Boots Alliance (WBA) paced the laggards with a 3.3% fall.

Meanwhile, the S&P 500 Index (SPX - 3,526.65) added 26.3 points, or 0.8% yesterday. The Nasdaq Composite (IXIC - 11,939.67) gained 164.2 points, or 1.4% during yesterday session. Both indexes locked in record closes.

Lastly, the Cboe Volatility Index (VIX - 26.12) lost 0.3 point, or 1.1% yesterday.

We have rounded up all the companies slated to release their quarterly earnings today.

• Brown-Forman Corporation (NYSE: BF -- $72.60) is a manufacturer, importer, exporter, and seller of various alcoholic beverages. BF.B is essentially flat year-to-date.

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

• GSX Techedu Inc. (NYSE: GSX -- $94.69) is a provider of online K-12 after-school tutoring services in the People's Republic of China. GSX is up a whopping 366.6% year-to-date.

  - GSX will report its second-quarter earnings before the bell today.

• Guess?, Inc. (NYSE: GES -- $12.01) is a designer and licenser of lifestyle collections of apparel and accessories for men, women, and children. GES is currently down 40% year-to-date.

  - Guess? will report its fiscal  first-quarter earnings of 2021 before the bell today.

• Macy's, Inc. (NYSE: M -- $7.01) is an omnichannel retail organization under the Macy's, Bloomingdale's, and bluemercury brands. M is down 35.8% year-over-year at the moment.

  - Macy's will report its fiscal  fourth-quarter earnings before the bell today.

• Vera Bradley, Inc. (NASDAQ: VRA -- $5.41) is a manufacturer and seller of women's handbags, luggage and travel items, fashion and home accessories, and gifts.

  - Vera Bradley will report its fiscal first-quarter earnings of 2021 before the bell today.

• Ambarella, Inc. (NASDAQ: AMBA -- $57.72) is a developer of semiconductor processing solutions for video operating worldwide.

  - Ambarella will report its fiscal  first-quarter earnings of 2021 after the market closes today.

• Cloudera, Inc. (NYSE: CLDR -- $13.86) provides a suite of data analytics and management products in the United States, Europe, and Asia.

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

• Copart, Inc. (NASDAQ: CPRT -- $104.02) provides online auctions and vehicle remarketing services.

  - Copart will report its fiscal  third-quarter earnings after the market closes today.

• CrowdStrike Holdings, Inc. (NASDAQ: CRWD -- $143.69) is a provider of cloud-delivered solutions for next-generation endpoint protection.

  - CrowdStrike will report its  fiscal first-quarter earnings of 2021 after the market closes today.

• Five Below, Inc. (NASDAQ: FIVE -- $114.42) is a specialty value retailer in the United States.

  - Five Below will report its first-quarter earnings of 2021 after the market closes today.

• Guidewire Software, Inc. (NYSE: GWRE-- $117.52) is a provider of software products for property and casualty insurers worldwide.

  - Guidewire Software will report its  fiscal third-quarter earnings after the market closes today.

• MongoDB, Inc. (NASDAQ: MDB -- $250.72) is a general-purpose database platform worldwide.

  - MongoDB will report its fiscal  first-quarter earnings of 2021 after the market closes today.

• PagerDuty, Inc. (NYSE: PD -- $36.65) is an operator of a platform for real-time operations in the United States and internationally.

  - PagerDuty will report its fiscal  first-quarter earnings of 2021 after the market closes today.

• PVH Corp. (NYSE: PVH -- $57.65) is an apparel company in the United States and internationally.

  - PVH will report its fiscal  first-quarter earnings of 2021 after the market closes today.

• Science Applications International Operation (NYSE: SAIC -- $82.80) is a provider of technical, engineering, and enterprise information technology (IT) services primarily in the United States.

  - Science Applications will report its  fiscal first-quarter earnings of 2021 after the market closes today.

• Smartsheet, Inc. (NYSE: SMAR -- $59.42) is a provider of cloud-based platform for execution of work.

  - Smartsheet will report its fiscal  first-quarter earnings of 2021 after the market closes today.

• Zuora, Inc. (NASDAQ: ZUO -- $15.24) is provider of cloud-based software on a subscription basis.

  - Zuora will report its fiscal  first-quarter earnings of 2021 after the market closes today.

Telehealth name Livongo Health Inc (NASDAQ:LVGO) is up 0.8% at $149.30 this morning, in a valiant effort to push past a downgrade from J.P. Morgan Securities. The analyst knocked its rating down to "neutral" from "overweight," predicting that competitor Teladoc (TDOC) will eventually sweep the market. However, the broker did bestow LVGO with a hefty price-target hike -- all the way to $150 from $80 -- which could be contributing to some of this morning's upside. 

Though the shares of LVGO have actually been consolidating right below the $150 mark for months, the security looks ready to grab its highest close on record, should some of these gains hold. The stock has been on a roll lately, stringing together eight consecutive monthly wins, with solid support at the 10- and 50-day moving averages. 

A look back at analyst coverage shows most were optimistic coming into today, with nine at a buy or better, and just three saying "hold." A couple more price-target hikes could be on the horizon though. The 12-month consensus price target of $126.18 is a 14.8% premium to last night's close. 

Short sellers are starting to hit the exits, too, with short interest down 3.2% in the last reporting period. There's still plenty of pent-up pessimism to be unwound, however. The 10 million shares sold short make up 17.6% of the stock's available float, and would take almost three days to cover, at its average daily pace of trading. 

The Dow Jones Industrial Average (DJI - 28,679.81) lost 157.7 points on Tuesday. The S&P 500 Index (SPX - 3,511.93) fell 0.6% yesterday, while the Nasdaq Composite (IXIC - 11,863.90) shed 0.1%. The Cboe Volatility Index (VIX - 26.07) added 4% on Tuesday. Overall, three major market indexes closed lower yesterday as the latest earnings season kicked off, and there was quite a bit of speculation on earnings and beyond with vaccine trials being put on hold and highly anticipated big tech product launches. It was a packed day, and earnings season is just getting started!

ICYMI (in case you missed it), here are our best actionable stock ideas we dropped yesterday:

• This biotech stock could be headed toward record highs
• Bull signal saying this communication stock could propel even higher
• This entertainment stock brought out the bulls with priority shift
• Vaccine trial paused, earnings beat, and this healthcare stock is falling
• This automobile stock is speeding higher after a two bull notes in one week
• This retail stock is flaunting its double analyst upgrades
• Earnings season kicked off with a BANG following this bank's earnings report
• Is this casino stock a long-term gamble or a sure thing?

Today is a big day of earnings announcements. While the producer price index (PPI) is on the schedule today, investors will be zoomed in on the slew of bank-centric company financial reports slated to be released today. In fact, we released a deep-dive into the odd correlation between two big names reporting today, United Airlines and Wells Fargo, here.

For your convenience, we have rounded up the companies slated to release their earnings today, October 14:

• ASML Holding N.V. (NASDAQ:ASML -- $405.15) develops, produces, markets, sells, and services advanced semiconductor equipment systems. ASML is 32.6% higher year-over-year.

  - ASML Holding will report its fiscal second-quarter earnings before the bell today.
  

• Bank of America Corporation (NYSE:BAC -- $24.95) provides banking and financial products and services worldwide. BAC has gone down 11.6% year-over-year.

  - Bank of America will report its fiscal second-quarter earnings before the bell today.
  

• The Goldman Sachs Group, Inc. (NYSE:GS -- $210.81) operates as an investment banking, securities, and investment management company worldwide. Last quarter, Goldman Sachs announced a partnership with Walmart (NYSE:WMT) and we analyzed the stock's reaction here.

  - Goldman Sachs will report its fiscal second-quarter earnings before the bell today.
  

• The PNC Financial Services Group, Inc. (NYSE:PNC -- $112.51) operates as a diversified financial services company in the United States. PNC has remained essentially flat year-over-year.

  - PNC will report its fiscal second-quarter earnings before the bell today.
  

• The Progressive Corporation (NYSE:PGR -- $100.27) provides personal and commercial insurance and related services primarily in the United States.

  - Progressive will report its fiscal second-quarter earnings before the bell today.
  

• U.S. Bancorp (NYSE:USB -- $38.42) provides various financial services in the United States. USB has remained essentially flat year-to-date. Last quarter, U.S. Bancorp battled through analyst skepticism and we analyzed the stock's reaction here.

  - U.S. Bancorp will report its fiscal second-quarter earnings before the bell today.
  

• UnitedHealth Group Incorporated (NYSE:UNH -- $331.42) operates as a diversified health care company in the United States. UNH has increased slightly by 7.9% year-over-year. Late last month, there were rumors of acquisition surrounding UnitedHealth. Here is how the stock reacted.

  - UnitedHealth will report its fiscal second-quarter earnings before the bell today.
  

• Wells Fargo & Company (NYSE:WFC -- $24.74) provides banking, investment, mortgage, and consumer and commercial finance products and services.

  - Wells Fargo will report its fiscal second-quarter earnings before the bell today.
  

• Alcoa Corporation (NYSE:AA -- $12.72) produces and sells bauxite, alumina, and aluminum products.

  - Alcoa will report its fiscal second-quarter earnings after the market closes today.
  

• Sleep Number Corporation (NASDAQ:SNBR -- $59.62) provides sleep solutions and services in the United States.

  - Sleep Number will report its fiscal second-quarter earnings after the market closes today.
  

• United Airlines Holdings, Inc. (NASDAQ:UAL -- $35.26) provides air transportation services. In an effort to provide some investor optimism last quarter, United updated their ticket policy and permanently eliminated ticket change fees. We analyzed how traders reacted to this news here.

  - United Airlines will report its fiscal second-quarter earnings after the market closes today.
  

• Washington Federal, Inc. (NASDAQ:WAFD -- $22.97) operates as the bank holding company that provides lending, depository, insurance, and other banking services.

  - Washington Federal will report its third-quarter earnings after the market closes today.
  

Again, for your convenience, we have rounded up how earnings played out for all those released yesterday, October 13:

• AZZ, Inc. (NYSE:AZZ -- $37.34) provides galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and highly engineered services.

  - Earnings per share decreased 9.26% over the past year to $0.49, which beat the estimate of $0.43. Revenue of $203.37 million declined by 13.89% year over year, which missed the estimate of $219.02 million.
  

• BlackRock, Inc. (NYSE:BLK -- $614.89) is a publicly owned investment manager.

  - Earnings per share were up 28.95% over the past year to $9.22, which beat the estimate of $7.77. Revenue of $4.37 billion, up 18.34% from the same period last year, which beat the estimate of $3.93 billion.

• Citigroup, Inc. (NYSE: C -- $45.88) provides various financial products and services to consumers, corporations, governments, and institutions. In September, this bank named consumer banking head Jane Fraser as its next chief executive officer in a historical move, making her the first woman to lead a major Wall Street bank. 

  - Shares of JPMorgan were trading lower by 1.44% Tuesday afternoon at $100.96. 

• Delta Air Lines, Inc. (NYSE:DAL -- $32.64) provides scheduled air transportation for passengers and cargo in the United States and internationally.

  - Earnings per share decreased 242.24% over the past year to -$3.30, which missed the estimate of -$3.00. Revenue of $3.06 billion decreased by 75.62% year over year, which missed the estimate of $3.11 billion.

• Fastenal Company (NASDAQ:FAST -- $47.64) engages in the wholesale distribution of industrial and construction supplies

  -  Earnings per share were up 2.70% year over year to $0.38, which beat the estimate of $0.37. Revenue of $1.41 billion up by 2.47% year over year, which missed the estimate of $1.42 billion.

• First Republic Bank (NYSE:FRC -- $125.61) provides private banking, private business banking, real estate lending, and wealth management services.

  - Earnings per share increased 16.03% year over year to $1.52, which beat the estimate of $1.39. Revenue of $1.00 billion up by 19.57% year-over-year, which beat the estimate of $955.96 million.

• Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the health care field worldwide.

  - The company reported EPS of $2.92 which beat estimates of $2.23. The reported revenue of $29.94 billion was about $1 billion more than analysts projections, doubling quarter-over-quarter profits.  JNJ stock fell after earnings combined with news of their vaccine candidate trial being paused.

• JPMorgan Chase & Co. (NYSE:JPM) researches and develops, manufactures, and sells various products in the health care field worldwide. JPM really did kick off earnings with a bang. According to one analyst, the bulk of JPMorgan's EPS beat can be attributed to a $611-million provision versus expectations of $2.8 billion, while fees contributed to the revenue beat.

• New Oriental Education & Technology Inc. (NYSE:EDU -- $170.93) provides private educational services under the New Oriental brand in the People's Republic of China.

  - Earnings per share were down 20.14% year over year to $1.15, which beat the estimate of $1.01. Revenue of $986.37 million declined by 7.99% year over year, which beat the estimate of $956.52 million.

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

Stitch Fix, Inc. (NASDAQ:SFIX) is an online clothing and fashion company that provides a personal styling service in the U.S. This service uses professional stylists and an algorithm that constantly adapts to the customers feedback and personal preferences. Stitch Fix was founded in 2011 and went public in 2017. Since its initial public offering (IPO), the stock has more than doubled in value.

However, SFIX has seen a lot of volatility in its short history as a public company. The  stock climbed above the $50 range around two years ago, but has also explored lows in $10 area last March. The shares are currently up about 28% year-to-date, but that is not the level of growth expected from an innovative company like this. Let's evaluate the fundamentals behind SFIX stock and assess its true growth potential.

Stitch Fix has a market cap of $3.43 billion and a book value of $3.87 per share according to the most recent quarterly data. Its price-to-book value currently stands at 8.18. The company has a massive trailing price-earnings (P/E) ratio of 82.13, and no forward P/E ratio.

Stitch Fix has missed expectations on its last two earnings reports. Most recently, the company missed their quarterly earnings target by $0.28, reporting a loss of -$0.44 instead of the expected -$0.16 hit. Pre-COVID,  Stitch Fix beat earnings in the first quarter of 2020 and in the final quarter of 2019 by margins of $0.05 and $0.06, respectively. In the company's upcoming earnings report --set for after-the-close on Dec. 1 -- Stitch Fix is expected to report a loss of 20 cents, resuming its upward trajectory from the first quarter of this year.

Revenue has grown by more than $100 million annually for the past four years. In 2018, Stitch Fix grew revenue by roughly $250 million. In 2019, the company grew revenue by $350 million. Despite the decrease in revenue achieved in the last two quarters, Stitch Fix still grew revenue by $134 million in 2020.

The company’s net income has been largely inconsistent over last four years. In the last three fiscal quarters, Stitch Fix has reported a decline in net income. Stitch Fix currently has $286.49 million in cash and $164.51 million in total debt. The company’s balance sheet holds $769.43 million in total assets and $368.39 million in total liabilities. Stitch Fix has $401.04 million in total equity on the balance sheet.

In conclusion, SFIX stock is very much a speculative play for investors at this point. However, as traditional brick and mortar clothing companies are shuffling to shift their businesses to online sales, Stitch Fix already has a huge advantage due to its unique service that is already online-based (and, thus, COVID-friendly). Furthermore, the company’s consistently growing revenue are a sign that there is, in fact, a demand for the service provided. This indicates that the company is likely to continue growing its customer base.


The company carries a surprisingly good balance sheet, despite its short history. Stitch Fix has the ability to pay off its total debt with the cash it has available and still have $122 million left over on its balance sheet. Ultimately, the company has a promising business model and the strong leadership required for growth. Stitch Fix could likely start to see the growth its innovation demands sooner rather than later.