Earnings Season Highlights

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A collection of noteworthy post-earnings reactions

Published on May 21, 2025 at 11:01 AM

Buzz Stocks
Analyst Update

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Palo Alto Networks Stock Slips After Q3 Results

by Laura McCandless

Software stock Palo Alto Networks Inc (NASDAQ:PANW) is slipping today, down 6.2% to trade at $182.52 at last glance, after the company's fiscal third-quarter results. Profits beat estimates, while revenue came in line with expectations, and gross margin fell more than anticipated. The firm also predicted a strong current quarter and hiked its full-year guidance.

No fewer than four analysts cut their price targets, including Northland Capital to $177 from $210, though Wells Fargo threw in a price-target hike to $235 from $225 and reiterated its "overweight" rating.

On the charts, PANW has had a volatile year so far, trading as high as $208.39 on Feb. 19 and as low as $144.15 on Apr. 7. Today, the shares are trading at their lowest level since late April, and testing their year-to-date breakeven level.

A short-term drop could've already been in the cards for Palo Alto Networks stock, per its 14-day relative strength index (RSI) of 70.9, which sits in "overbought" territory.

So far today, PANW has seen 72,000 calls and 48,000 puts traded so far in the options pits, which is 10 times the overall options volume typically seen at this point. The weekly 5/23 180-strike put is the most popular, with new positions being bought to open there.

Published on May 21, 2025 at 10:27 AM

Buzz Stocks

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2 Retail Stocks Slip as Tariff, Spending Concerns Weigh

by Jake Scott

Two major retailers are moving lower this morning following their latest earnings reports. Target Corp (NYSE:TGT) and Lowe’s Companies Inc (NYSE:LOW) each posted mixed results, with cautious outlooks and macro headwinds weighing on investor sentiment.

Target stock is down 7% at $91.32, after the retailer missed first-quarter revenue estimates and slashed its full-year sales outlook. Executives pointed to tariff uncertainty, weaker discretionary spending, and consumer backlash to recent diversity, equity, and inclusion rollbacks as key pressures. The retailer’s earnings of $2.03 per share topped estimates, but revenue of $24.53 billion fell short of the $24.52 billion consensus. Year to date, TGT is down 32.4%, with its descending 50-day moving average stalling out rallies this month.

Lowe's stock is off 1.4% at $227.79, despite beating bottom-line expectations with first-quarter earnings of $2.92 per share, versus $2.88 expected. Revenue came in just shy at $20.93 billion, missing by a hair. The company reaffirmed its full-year outlook, including earnings guidance of $12.15 to $12.40 per share and comparable sales growth between flat and 1%. LOW is now down 6.7% in 2025, and is staring up at its 80-day trendline.

Both stocks are seeing elevated intraday options activity, with volume running at 4 times the average pace for each. So far, 2,884 calls and 2,063 puts have traded on Target, while Lowe’s has seen 2,908 calls and 2,075 puts cross the tape.

Published on May 21, 2025 at 9:03 AM

Updated on May 21, 2025 at 9:06 AM

Opening View

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Dow, Nasdaq Futures Sharply Lower as Bond Yields Rise

by Fernanda Horner

Published on May 21, 2025 at 8:00 AM

Indicator of the Week

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Memorial Day Week: Best and Worst Stocks to Own

by Rocky White

Published on May 20, 2025 at 4:26 PM

Market Recap

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Stocks Cool Off as Profit-Taking Weighs on Tech

by Patrick Martin

Published on May 20, 2025 at 3:09 PM

Technical Analysis

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Sea Stock Could Soon Extend Rally

by Laura McCandless

One of Schaeffer's top stock picks for 2025, Sea Ltd (NYSE:SE), has been rallying on the charts after bouncing off newfound support at the $100 level. The shares just hit a May 16 three-year high of $165.31, and are still hanging out in that region, last seen trading at $162.51 today.

Plus, SE's recent peak comes amid low implied volatility (IV), per its Schaeffer's Volatility Index (SVI) of 35%, which sits in the 6th percentile of its annual range. This has occurred six other times in the past three years, after which the equity was higher one month later 83% of the time with an average 8.7% gain. From its current perch, a similar move would put Sea stock at $176.64, a level not seen since January 2022.

SE May20

SE saw plenty of bullish attention after its upbeat first-quarter report last week, which helped the stock notch its sixth consecutive post-earnings win. Still, five of the 21 analysts in coverage carry a "hold" rating, leaving some room for optimism. And if the stock does extend its rally, surpassing its 12-month consensus price target of $173.40, price-target hikes could provide tailwinds.

Published on May 5, 2025 at 2:30 PM

Updated on May 20, 2025 at 2:43 PM

Strategies and Concepts

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Memorial Day Stock Market Holiday Facts

by Schaeffer's Digital Content Team

Yes, the U.S. stock market is closed on Memorial Day. Memorial Day is a federal holiday in the United States, observed on the last Monday of May each year, to honor and remember military personnel who have died in service to the country.

Both the New York Stock Exchange (NYSE) and the Nasdaq follow the federal holiday schedule and remain closed in observance of Memorial Day. This closure is part of their regular holiday schedule, which includes several other federal holidays, to allow traders, investors, and financial professionals to observe and celebrate the day.

What is the History Behind the Memorial Day Holiday?

Memorial Day, originally known as Decoration Day, originated after the Civil War as a day to honor and remember soldiers who died in military service. Its history and evolution are deeply tied to the legacy of the Civil War and the need for national healing.

The first widely recognized observance was on May 30, 1868, when General John A. Logan, leader of an organization for Union veterans, declared the day as "Decoration Day." The date was chosen because it wasn’t the anniversary of a specific battle, allowing it to honor all soldiers. Over time, Decoration Day expanded to honor those who died in all U.S. wars, not just the Civil War.

In 1967, Decoration Day was officially recognized as Memorial Day through federal legislation. In 1971, Memorial Day was declared a federal holiday as part of the Uniform Monday Holiday Act, which established the observance on the last Monday in May to create a three-day weekend for workers. The law aimed to provide a consistent holiday schedule and an opportunity for reflection on national sacrifices.

Is the Stock Market Open or Closed on the Memorial Day Holiday?

All U.S. stock markets are closed in observance of Memorial Day. This includes The New York Stock Exchange (NYSE), Nasdaq, Dow Jones Industrial Average (DJIA), S&P 500 (SPX), and more.

This year the Memorial Day holiday will be recognized on Monday, May 26, 2025. As a result, the U.S. stock markets, including the Nasdaq and New York Stock Exchange, will be closed for the full day, marking a holiday-shortened trading week. The stock market will reopen as normal at 9:30 a.m. ET on Tuesday, May 27, 2025.

For more insight into how stocks typically perform during Memorial Day week, click here.

What about Bonds? Are Bond Markets Open or Closed on the Memorial Day Holiday?

Yes, bond markets in the U.S. are generally closed on Memorial Day. The bond market, regulated by the Securities Industry and Financial Markets Association (SIFMA), follows a holiday schedule similar to that of the U.S. stock market.

Memorial Day is recognized as a full market holiday, meaning that both the stock and bond markets remain closed for trading. This includes the Treasury and corporate bond markets, giving financial professionals and investors the opportunity to observe the holiday.

How Might You Observe Memorial Day This Year?

In modern times, Memorial Day is observed with a blend of solemn remembrance for fallen military personnel and celebratory activities marking the unofficial start of summer in the United States. Here are common ways people observe the holiday:

Acts of remembrance, like visiting cemeteries/memorials. There is also a Moment of Remembrance at 3:00 PM local time where Americans are encouraged to pause for a minute of silence to reflect on the sacrifices of fallen soldiers.
Community events, like parades and wreath-laying ceremonies.
Patriotic displays, like displaying flags and participating in Memorial Day runs and walks.
Family gatherings, as Memorial Day marks the unofficial start to summer.
Supporting military causes, like volunteering to support veterans' organizations or donating to causes that aid military families.

Memorial Day continues to be a balance of reflection and celebration, honoring those who made the ultimate sacrifice while bringing people together to appreciate freedoms secured through their service.

NEXT MARKET HOLIDAY: JUNETEENTH ON 6/19/25
FOR MORE INFORMATION: Juneteenth Stock Market Holiday Facts

Published on May 20, 2025 at 1:56 PM

Earnings Preview

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Retail Stock With Contrarian Potential as Earnings Loom

by Patrick Martin

Most of Wall Street has stepped into the earnings confessional by now, but there are still some retail stragglers. One intriguing name to watch is Urban Outfitters, Inc. (NASDAQ:URBN), which reports first-quarter earnings after the market closes tomorrow, May 21. Ahead of the event, options traders are betting bearishly.

URBN has a varied history of post-earnings moves. The stock melted up by 8.2% after its earnings report in late February, and tacked on 18.3% in late November. The shares averaged a post-earnings move, regardless of direction, of 10.8% after the last eight reports. This time around, the options market is pricing in a larger-than-usual post-earnings swing of 14.1%.

The stock was last seen trading at $61.68, consolidating below a May 16 record high of $63.21. The shares are up 12% year-to-date, catapulting off their 320-day moving average from their April lows.

URBN Stock Chart

There's contrarian potential everywhere you look. Of the 11 brokerages covering URBN, seven maintain "hold" or worse ratings, while the consensus 12-month price target of $59.42 is a 3.5% discount to its current perch. A stellar post-earnings reaction could prompt a flurry of bull notes.

Short sellers, meanwhile, are piling on, with short interest 42% higher in the two most recent reporting periods. The 8.98 million shares sold short accounts for 14.4% of the equity's total available float, and at its average pace of trading, it would take shorts almost four days to buy back their bearish bets.

Options traders also lean bearish, with URBN's 50-day put/call volume ratio of 2.10 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 97th percentile of its annual range. Echoing this, its Schaeffer's put/call open interest ratio (SOIR) of 1.41 sits in the 87th percentile of readings from the past month.

Published on May 20, 2025 at 12:02 PM

Midday Market Check

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Tech Sector Steers Wall Street Lower Amid Fed Speeches

by Laura McCandless

Stocks are swimming in red ink midday. The Nasdaq Composite (IXIC) is struggling the most as tech stocks move broadly lower, while the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) look to snap their three- and six-day win streaks. Several Fed officials will make speeches throughout the day today, with investors searching for insight after Moody's credit downgrade.

Continue reading for more on today's market, including:

MongoDB stock downgraded on slow AI progress.
Home Depot announced it will not raise prices due to tariffs.
Plus, options traders blast quantum computing name; AS soars after earnings; and NMAX continues its trek lower.

MMC May 20

D-Wave Quantum Inc (NYSE:QBTS) is seeing the most volume in the options pits today. So far, 269,000 calls and 111,000 puts have been exchanged, which is already 7 times the options volume QBTS typically sees at this point in the day. The weekly 5/23 16-strike call is the most popular, with new positions being opened there. At last glance, QBTS was up 28.5% at $16.90, after the company announced that its most advanced system, the Advantage2 quantum computer, was commercially ready.

Outdoor retail stock Amer Sports Inc (NYSE:AS) was last seen up 17.4% at $36.85, after the Arcteryx parent's strong first-quarter results and upbeat full-year forecast. Publicly traded since February of 2024, today's pop has AS soaring to record highs. Year over year, the equity is up roughly 130%.

AS May20

Broadcasting name Newsmax Inc (NYSE:NMAX) was down 9.1% at $23.46 at last check, continuing its steep slide from its late-March initial public offering (IPO). The stock hit a high of $265 on April 1, and has seen many challenges since then, though announcing revenue growth on Friday. Since the start of the quarter, NMAX has lost 71.7%.

Published on May 20, 2025 at 9:11 AM

Updated on May 20, 2025 at 11:36 AM

Opening View

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S&P 500 Futures Slump, Put Win Streak at Risk

by Fernanda Horner

Published on May 20, 2025 at 11:14 AM

Analyst Update

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Quantum Computing Stock Breaks Record on New Launch

by Fernanda Horner

The shares of D-Wave Quantum Inc (NYSE:QBTS) are up 29.6% to trade at a record high of $17.04 at last glance. Today's surge comes after the company announced the launch of its sixth-generation quantum computer, featuring its most advanced quantum processor yet. The system will reportedly be useful for real-world applications, including artificial intelligence (AI), optimization, and materials simulation.

QBTS is pacing for its fifth gain over the last six sessions, as well as its third-straight pop. The security already boasts an astounding 1,188.2% year-over-year lead, and has already doubled in 2025. Shares are also consolidating above the $112 level, which capped rallies in December and March.

Options volume is already running at 9 times the intraday average volume, with 219,000 calls and 75,000 puts across the tape so far. The most active by far is the weekly 5/23 16 call, though new positions are now being bought to open at the leading six call contracts.

This denotes a sentiment shift, with pessimism rapidly unwinding. This is per D-Wave Quantum stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks higher than 97% of readings from the past 12 months.

Published on May 20, 2025 at 10:29 AM