Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Nov 11, 2020 at 9:01 AM
  • Earnings Preview
  • Buzz Stocks

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.

Published on Nov 11, 2020 at 8:00 AM
  • Indicator of the Week
    
Published on Nov 11, 2020 at 8:00 AM
  • Earnings Preview
  • Buzz Stocks

What to Expect from Wix.com Stock Ahead of Earnings

by Schaeffer's Digital Content Team

Wix.com, Ltd. (NASDAQ:WIX) is an Israeli software company that allows users to create their own websites without any coding experience. The company focuses on making the website-building process as simple and accessible to people with all experience levels. Wix.com is scheduled to report earnings this week on November 12 before the opening bell, and will be seeking to improve from its lackluster earnings report last quarter. WIX stock is currently trading up 231% from its 52-week low of $76.81 tapped on March 18. Yet, WIX stock is trading 20.5% off from its 52-week high of $316.34 hit on August 6. Overall, WIX stock has done exceptionally well in 2020, nearly doubling in value year-to-date.

Wix.com has beat expectations on three of its four most recent earnings reports. Looking back to the third quarter of 2019, Wix.com beat expectations by $0.08. The company reported an earnings per share (EPS) of $0.41. In the following quarter, fourth quarter of 2019, Wix.com replicated its previous quarter margin beat of $0.08 per share. However, Wix.com dropped its reported EPS down to $0.39. The company further dropped its reported EPS down to -$0.01 in the first quarter of 2020, but still managed to beat expectations by $0.02. Most recently, Wix.com missed its earnings target by a huge margin of $0.50 for the second quarter of 2020. The company reported an EPS of -$0.26 instead of the expected EPS of $0.24. For Wix.com's upcoming earnings report slated for Thursday, Wix.com is expected to report an EPS of -$0.15.

WIX stock is currently sporting a ranking of 84 out of 100 on the Schaeffer's Volatility Scorecard (SVS). A high SVS ranking like 84 indicates that WIX stock has consistently delivered bigger returns than its options implied volatility (IV) levels have predicted, meaning WIX stock may be a strong candidate for premium-buying strategies going forward. Using Schaeffer's robust historical database, we conduct extensive research on each underlying equity and determined which of those underlying equities’ options have historically had underpriced or overpriced options, which is how the SVS rankings are developed.

Although Wix.com is one of the biggest names amongst the build-a-site companies, there is no shortage of competition in the space. Wix.com has to compete for market share with the likes of WordPress, Squarespace, and Shopify (SHOP), undoubtedly limiting the company’s growth opportunities. That being said, out of the competitors mentioned, only Shopify trades publicly like Wix.com. Further, Shopify only focuses on the development of e-commerce sites, making Wix.com the frontrunner for consumers looking to invest in a web-building software company. This is likely the reason for both Wix.com and Shopify’s inflated stock prices today. Despite Wix.com’s relatively poor bottom-line performance, its revenue growth could be enough to keep pushing the stock price up over the coming 12 months

Stock investors, remain cautious about purchasing this stock. There has yet to be a sign of the company becoming profitable based on a deep-dive of the fundamentals. Although WIX stock will likely continue rising in price, there may safer options for investment available on the market today.

Published on Nov 11, 2020 at 7:16 AM
  • Buzz Stocks

Today's Stock Market News & Events: 11/11/2020

by Schaeffer's Digital Content Team

Stay-at-home stocks that thrived throughout this year's pandemic were rotated tossed aside yesterday as investors favored companies more directly linked to economic recovery. While the Dow was able to achieve another daily win, the Nasdaq and the S&P 500 phoned in losses on Tuesday. The Dow Jones Industrial Average (DJI - 29,420.92) rose 263 points for the day yesterday. The S&P 500 Index (SPX - 3,545.53) shed 5 points and the Nasdaq Composite (IXIC - 11,553.86) fell 159.9 points yesterday. The Cboe Volatility Index (VIX - 24.80) lost 1 point during Tuesday's session.

With the vaccine news taking the spotlight this week, you may have missed some key insights from our analysts. Be sure to catch up quickly before the open here:

  • NFLX stock was headed toward record levels
  • ULTA stock was targeted by call buyers on partnership news
  • NEE stock's options bull picked up on bidding buzz
  • SPG stock whiffed on its earnings, but eyed key trendline
  • LOW stock took a nosedive despite denying buyout rumors
  • Two stocks to keep an eye on this week: AMAT and RVLV

Today is Veteran's Day in the United States. As such, there will be no economic data reported. The U.S. stock markets are open for normal trading hours between 9:30 a.m. ET and 4:00 p.m. ET, but the bonds markets will be closed today and slated to reopen for normal trading on Thursday. There are, however, a solid handful of big names reporting earnings today so fasten your seatbelts, traders.


For your convenience, we have rounded up the companies slated to release earnings today, November 11:

Air Products and Chemicals, Inc. (NYSE:APD -- $309.97) provides atmospheric gases, process and specialty gases, equipment, and services worldwide. Air Products and Chemicals will report its fourth-quarter earnings before the bell today.

CGI Group, Inc. (NYSE:GIB -- $68.73) provides information technology (IT) and business process services. CGI Group will report its fourth-quarter earnings before the bell today.

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. DOYU stock is up 37.0% year-over-year. DouYu will report its third-quarter earnings before the bell today.

HUYA, Inc. (NYSE:HUYA -- $19.91) operates game live streaming platforms in the People's Republic of China. HUYA stock is currently up 24.3% year-to-date. HUYA will report its third-quarter earnings before the bell today.

Atmos Energy Corporation (NYSE:ATO -- $102.45) engages in the regulated natural gas distribution, and pipeline and storage businesses. Atmos Energy will report its fourth-quarter earnings before the bell today.

CMC Materials, Inc. (NASDAQ:CCMP -- $168.75) provides consumable materials to semiconductor manufacturers, and pipeline and adjacent industry customers worldwide. CMC Materials will report its fourth-quarter earnings before the bell today.

Enersys (NYSE:ENS -- $83.08) manufactures, markets, and distributes industrial batteries. Enersys will report its second-quarter earnings of 2021 before the bell today.

Hillenbrand, Inc. (NYSE:HI -- $33.15) operates as a diversified industrial company. Hillenbrand will report its third-quarter earnings before the bell today.

Manulife Financial Corporation (NYSE:MFC -- $16.86) provides financial advice, insurance, and wealth and asset management solutions. Manulife Financial will report its third-quarter earnings before the bell today.

Revolve Group, Inc. (NYSE:RVLV -- $21.84) operates as an online fashion retailer for consumers. Revolve Group will report its third-quarter earnings before the bell today.

Reynolds Consumer Products, Inc. (NASDAQ:REYN -- $29.00) produces and sells products in cooking, waste and storage, and tableware product categories. Reynolds Consumer Products will report its third-quarter earnings before the bell today.

SpartanNash Company (NASDAQ:SPTN -- $18.50) distributes and retails grocery products. SpartanNash will report its third-quarter earnings before the bell today.

TETRA Technologies, Inc. (NYSE:TTI -- $0.6188) operates as a diversified oil and gas services company. Tetra will report its third-quarter earnings before the bell today.

Vroom, Inc. (NASDAQ:VRM -- $38.29) operates an e-commerce platform for buying, selling, and trading of new and used cars in the United States. Vroom will report its third-quarter earnings before the bell today.


Here is a quick recap of how yesterday’s earning calls fared against expectations:

Advance Auto Parts, Inc. (NYSE:AAP -- $156.76) provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks. Earnings per share rose 33.81% year over year to $2.81, which beat the estimate of $2.66. Revenue of $2,542,000,000 rose by 9.95% year over year, which beat the estimate of $2,480,000,000.

AerCap Holdings N.V. (NYSE:AER -- $35.52) an aircraft leasing company, engages in the lease, financing, sale, and management of commercial aircraft and engines. Earnings per share fell 38.31% year over year to $1.24, which missed the estimate of $1.43. Revenue of $988,101,000 declined by 13.25% from the same period last year, which missed the estimate of $1,100,000,000.

BioNTech SE (NASDAQ:BNTX -- $104.80) operates as a clinical-stage biotechnology company. Earnings per share were down 586.67% year over year to ($1.03), which missed the estimate of ($0.42). Revenue of $78,831,000 higher by 151.99% year over year, which beat the estimate of $63,840,000.

CyberArk Software Ltd. (NASDAQ:CYBR -- $105.54) develops, markets, and sales software-based security solutions and services. Earnings per share fell 52.31% year over year to $0.31, which beat the estimate of $0.29. Revenue of $106,589,000 decreased by 1.41% year over year, which missed the estimate of $112,040,000.

D.R. Horton, Inc. (NYSE:DHI -- $64.95) operates as a home construction company. Earnings per share increased 65.93% year over year to $2.24, which beat the estimate of $1.76. Revenue of $6,400,000,000 rose by 27.01% year over year, which beat the estimate of $5,880,000,000.

Embraer SA (NYSE:ERJ -- $5.50) designs, develops, manufactures, and sells aircrafts and systems. Earnings per share decreased 211.54% year over year to ($0.81), which missed the estimate of ($0.45). Revenue of $758,700,000 declined by 35.48% year over year, which missed the estimate of $816,740,000.

Novanta, Inc. (NASDAQ:NOVT -- $122.58) designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems. Earnings per share were down 20.75% over the past year to $0.42, which beat the estimate of $0.39. Revenue of $142,929,000 declined by 7.23% from the same period last year, which beat the estimate of $141,350,000.

Rockwell Automation, Inc. (NYSE:ROK -- $254.74) engages in the provision of industrial automation and information services. Earnings per share fell 6.97% over the past year to $1.87, which beat the estimate of $1.76. Revenue of $1,570,000,000 decreased by 9.25% from the same period last year, which missed the estimate of $1,590,000,000.

Adaptive Biotechnologies Corporation (NASDAQ:ADPT -- $48.08) develops an immune medicine platform for the diagnosis and treatment of various diseases. Earnings per share fell 145.45% over the past year to ($0.27), which beat the estimate of ($0.28). Revenue of $26,299,000 higher by 0.92% from the same period last year, which beat the estimate of $23,580,000.

Alcon, Inc. (NYSE:ALC -- $65.63) researches, develops, manufactures, distributes, and sells eye care products. Earnings per share decreased 15.22% year over year to $0.39, which beat the estimate of $0.22. Revenue of $1,818,000,000 declined by 1.25% year over year, which beat the estimate of $1,670,000,000.

Amdocs Limited (NASDAQ:DOX -- $60.76) provides software and services. Earnings per share rose 13.89% year over year to $1.23, which beat the estimate of $1.18. Revenue of $1,053,000,000 higher by 2.23% from the same period last year, which beat the estimate of $1,030,000,000.

Ashland Global Holdings, Inc. (NYSE:ASH -- $78.51) provides specialty chemical solutions worldwide. Earnings per share were up 62.34% over the past year to $1.25, which beat the estimate of $0.75. Revenue of $609,000,000 unchanged by 0.00% from the same period last year, which beat the estimate of $594,090,000.

Brooks Automation, Inc. (NASDAQ:BRKS -- $60.71) provides automation and cryogenic solutions worldwide. Earnings per share rose 95.83% over the past year to $0.47, which beat the estimate of $0.36. Revenue of $246,196,000 rose by 22.96% from the same period last year, which beat the estimate of $234,880,000.

Coherent, Inc. (NASDAQ:COHR -- $140.45) provides lasers, laser-based technologies, and laser-based system solutions. Earnings per share rose 13.48% over the past year to $1.01, which beat the estimate of $0.80. Revenue of $316,751,000 decreased by 5.58% from the same period last year, which beat the estimate of $309,640,000.

Covetrus, Inc. (NASDAQ:CVET -- $26.63) operates as an animal-health technology and services company. Earnings per share were up 52.94% year over year to $0.26, which beat the estimate of $0.18. Revenue of $1,126,000,000 up by 10.61% from the same period last year, which beat the estimate of $1,050,000,000.

Datadog, Inc. (NASDAQ:DDOG -- $94.89) provides monitoring and analytics platform. Earnings per share rose 0.00% over the past year to $0.05, which beat the estimate of $0.01. Revenue of $154,675,000 up by 61.35% from the same period last year, which beat the estimate of $144,310,000.

Fair Isaac Corporation (NYSE:FICO -- $430.50) develops analytic, software, and data management products and services. Earnings per share were up 61.69% year over year to $3.25, which beat the estimate of $2.32. Revenue of $374,356,000 higher by 22.60% from the same period last year, which beat the estimate of $316,400,000.

Fox Factory Holding Corporation (NASDAQ:FOXF -- $83.48) designs, engineers, manufactures, and markets ride dynamics products worldwide. Earnings per share were up 28.92% over the past year to $1.07, which beat the estimate of $0.87. Revenue of $260,700,000 up by 23.37% year over year, which beat the estimate of $252,490,000.

Health Catalyst, Inc. (NASDAQ:HCAT -- $35.74) provides data and analytics technology and services to healthcare organizations. Earnings per share rose 22.22% over the past year to ($0.21), which beat the estimate of ($0.27). Revenue of $47,191,000 up by 19.70% from the same period last year, which beat the estimate of $44,590,000.

Kornit Digital Ltd. (NASDAQ:KRNT -- $66.52) develops, designs, and markets digital printing solutions. Earnings per share were up 100.00% year over year to $0.18, which beat the estimate of $0.13. Revenue of $57,392,000 up by 28.74% year over year, which beat the estimate of $55,140,000.

Model N, Inc. (NYSE:MODN -- $35.46) engages in the provision of revenue management cloud solutions for the life science and technology industries. Earnings per share increased 16.67% year over year to $0.14, which beat the estimate of $0.09. Revenue of $41,460,000 higher by 13.27% year over year, which beat the estimate of $40,420,000.

Palomar Holdings, Inc. (NASDAQ:PLMR -- $99.38) provides specialty property insurance. Earnings per share fell 250.00% over the past year to ($0.60), which missed the estimate of ($0.54). Revenue of $42,020,000 higher by 52.13% year over year, which missed the estimate of $87,510,000.

Perspecta, Inc. (NYSE:PRSP -- $22.42) engages in the provision of end-to-end enterprise information technology services. Earnings per share were down 1.85% year over year to $0.53, which beat the estimate of $0.50. Revenue of $1,142,000,000 declined by 2.56% from the same period last year, which beat the estimate of $1,110,000,000.

Sanmina Corporation (NASDAQ:SANM -- $28.71) provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services. Earnings per share were up 30.95% over the past year to $1.10, which beat the estimate of $0.77. Revenue of $1,875,000,000 decreased by 0.90% from the same period last year, which beat the estimate of $1,790,000,000.

Silk Road Medical, Inc. (NASDAQ:SILK -- $68.19) operates as a medical device company. Earnings per share decreased 19.23% over the past year to ($0.31), which missed the estimate of ($0.28). Revenue of $20,067,000 up by 17.86% year over year, which beat the estimate of $19,590,000.


If it seems as though everything for the week will be packed into tomorrow, that's because it is. Initial and continuing jobless claims are due out. Additionally, there's the core consumer price index (CPI) and federal budget data set to be released as well.

Published on Nov 10, 2020 at 2:35 PM
  • Quantitative Analysis

The shares of Netflix Inc (NASDAQ:NFLX) are up 2.2% at $480.92 this afternoon. And while the streaming concern has been cooling down after flirting with its July 13, all-time high of $575.37 in recent weeks, the security is still enjoying an impressive 63.8% year-over-year lead. Even better, the equity's latest pullback has it near a historically bullish trendline, which could catapult NFLX higher in the coming weeks.

More specifically, Netflix stock just came within one standard deviation of its 160-day moving average, after spending most of 2020 above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, three similar signals have occurred during the past three years. One month after each signal, NFLX enjoyed a 18.7% gain. From its current perch, a move of similar magnitude would put the stock above the $570 mark -- closer to its record high.

NFLX 160 Day

Though shorts are already hitting the exits, there is still some pessimism left to be unwound, which could push the security even higher. Short interest dropped 15.4% in the last two reporting periods, but the 9.42 million shares sold short still make up 2.2% of the stock's available float.

Now certainly looks like an good time to take advantage of NFLX's next move with options. The security's Schaeffer's Volatility Index (SVI) of 41% sits in the relatively low 21st percentile of its annual range. This means the stock is currently sporting attractively priced premiums. 

Published on Nov 10, 2020 at 11:16 AM
Updated on Nov 10, 2020 at 2:12 PM
  • Buzz Stocks
That optimism still rings true today, despite SPG's earnings miss. So far, 12,000 calls have crossed the tape -- four times the average intraday amount, and more than twice the number of puts traded. 
Published on Nov 10, 2020 at 12:53 PM
  • Intraday Option Activity
  • Buzz Stocks
Ulta Beauty (ULTA) and Target (TGT) are opening makeup and skincare shops in just over 100 of Target stores across the U.S. Each shop will occupy about 1,000 square feet and be staffed by Target employees trained by Ulta. 
Published on Oct 30, 2020 at 10:10 AM
Updated on Nov 10, 2020 at 11:29 AM
  • Buzz Stocks
 
Published on Nov 10, 2020 at 11:12 AM
  • Buzz Stocks
 
Published on Nov 10, 2020 at 11:02 AM
  • Buzz Stocks

A Bloomberg report that Lowe's Companies Inc (NYSE:LOW) is in talks to buy construction materials distributor HD Supply Holdings (HDS) is being denied by the company. The report, which came out yesterday, mentioned other potential buyers for HDS, and sent the stock soaring. Lowe's, meanwhile, saw a sharp drop, though it looks to be recuperating today, up 0.8% at $154.69 at last check. 

Now, the security is still looking up at its 100-day moving average -- a  former point of support that the security dropped south of during yesterday's session. A floor at the 120-day moving average has moved in however, keeping it at a 29% lead for the year. 

Analysts are mostly optimistic over LOW, with 16 of the 21 in coverage calling it a "buy" or better. Plus, the 12-month consensus price target of $185.04 is a hefty 19.7% premium to current levels, and represents a level not yet touched by the equity. 

A look at today's options trading shows bulls picking up the pace today, with 4,493 calls across the tape -- double the intraday average -- compared to just 950 puts. Most popular is the November 180 call, followed by the weekly 11/13 160 call. This suggests investors could be speculating on more upside for the equity in the coming weeks. 

 

 

 

Published on Nov 10, 2020 at 9:20 AM
  • Earnings Preview
  • Buzz Stocks

Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer for women. The company is known for its impressive implementation of social media platforms and its collaborations with influencers. Revolve Group is slated to report earnings tomorrow, November 11 after the close. RVLV has tripled off its March lows near $7, but is 12% from the 52-week high it scored on Aug. 14.

As far as earnings announcements go, Revolve has beat expectations on all four of its most recent earnings reports. When reporting on the third quarter of 2019, Revolve beat expectations by $0.02. The company reported an earnings per share (EPS) of $0.13. In the following financial report released showing results from the fourth quarter of 2019, Revolve's earnings dropped to $0.12 per share, but beat expectations by $0.01. Revolve further dropped in its reported EPS down to $0.06 for the first quarter of 2020, but again still managed to beat expectations by $0.02. Most recently, Revolve's quarterly earnings report revealed that the company beat its target by approximately 900%. The company reported an EPS of $0.20 instead of the anticipated EPS of $0.02. With the next earnings report slated for release tomorrow, Revolve is expected to drop its EPS to $0.14.

One thing that stands out when looking at RVLV's technical backdrop is the amount of short interest tied up into the stock. Short sellers upped the ante by 32% in the two most recent reporting periods, and the 8.67 million shares sold short accounts for a whopping 64% of the stock's total available float. At RVLV's average pace of trading, it would take almost six days for shorts to buy back their bearish bets; ample amount of buying power that can hit the market.

Revolve has performed fairly well throughout the pandemic this year. The company only saw a slight reduction in revenue when compared to what it produced last year, but has still managed to increase its bottom-line profits over the past 12 months. As an already-thriving online retail company, Revolve was spared from the pain that brick and mortar retail companies saw this year, and may continue to see well into next year or beyond. The company solved a lot of its issues by reducing its inventory.  Revolve was also able to improve on its already outstanding balance sheet during the coronavirus pandemic.

The most notable impact of the pandemic on Revolve was that it caused a slow-down in the company's growth rate in a year where the company was previously positioned to do exceptionally well. Nonetheless, the $150 million in cash Revolve holds should be more than enough to help the company resume its growth pattern, which was already notably jumpstarted with its above and beyond report on second quarter of 2020 earnings.

Because of its continued growth throughout this year, RVLV  is not particularly well-priced for stock investors to jump on now. If the company releases a strong earnings report on Wednesday, there is a strong likelihood that the stock price will increase further.

Published on Nov 10, 2020 at 9:01 AM
  • Earnings Preview
  • Buzz Stocks

Keep an Eye on Applied Materials Stock This Week

by Schaeffer's Digital Content Team

Applied Materials, Inc. (NYSE:AMAT) is one of the leading producers of equipment for the production of computer chips, flat panel screens, and solar energy devices. The company is headquartered in Silicon Valley but operates in many locations across the world. Most recently, Applied Materials acquired Kokusai Electronics, which expanded the company’s operations in Japan and Asia.

Applied Materials is slated to report earnings this week on Thursday, November 12 after the close. AMAT is currently only $0.33 away from its 52-week high, and has nearly doubled off its 52-week low of $36.64. Year-to-date, the stock is up 17%.

Applied Materials has beat expectations on three of its four most recent earnings reports. In the fourth quarter of 2019, Applied Materials beat expectations by $0.04. The company reported an earnings per share (EPS) of $0.80. The company increased its EPS to $0.98 in its financial reporting on the first quarter of 2020 and beat expectations by $0.05. The only miss in earnings Applied Materials has reported in the past 12 months came in the second quarter of 2020. The company missed earnings by $0.05, reporting an EPS of $0.89. Most recently, Applied Materials reported an EPS of $1.06 instead of the expected EPS of $0.95, beating its target by 12%. As for the earnings report slated for release on Thursday, Applied Materials is expected to boost its EPS to $1.17.

Applied Materials has a forward dividend of $0.88 and a yield of 1.25% and has grown its dividend since 2005, while its last dividend came in at 22 cents. Applied Materials is currently sporting a ranking of 29 on the Schaeffer's Volatility Scorecard (SVS). Using Schaeffer's robust historical database, we conduct extensive research on each underlying equity and determined which of those underlying equities’ options have historically had underpriced or overpriced options. We rank each equity’s options relative to the others in our universe, with scores ranging from zero to 100. Lower SVS readings point to stocks that have consistently realized lower volatility than their options have priced in -- pointing to possible premium-selling candidates.

Applied Materials is in a prime position to reap the benefits of the ongoing digital era. The company's biggest customers are three of the biggest chipmakers in the world: Samsung Electronics, Taiwan Semiconductor Manufacturing Company (TSM), and Intel (INTC). Furthermore, the company is primarily known as a star in the semiconductor industry, but has three different segments that it operates: Semiconductor Systems, Applied Global Services, and Display. This diversification of revenue sources from a fundamental perspective, makes AMAT stock a good candidate for investors searching for a tech-related stock at an inexpensive price.

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