Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on May 12, 2021 at 10:16 AM
  • Intraday Option Activity
  • Buzz Stocks
Wendy's typically quiet options pits are exploding today, with traders from both sides of the aisle chiming in. So far, 6,441 calls and 5,587 puts have exchanged hands -- 68 times the intraday average.
Published on May 12, 2021 at 9:25 AM
  • Buzz Stocks

Intuit Inc. (NASDAQ:INTU) is gearing up for its fiscal third-quarter earnings release, expected out later this month after the market closes on Tuesday, May 25. The company said on Tuesday that it will most likely top the fiscal 2021 sales and earnings forecast it set in February, though revenue could lag because of this year's tax filing extension to  May 17. RBC lifted its price target to $490 from $480 in response. 

Intuit stock is flat despite the announcement, last seen just a hair's breadth above last night's close at $395. The past year has been a choppy one for INTU, with the $420 mark acting as a ceiling on two separate occasions since February, keeping the stock from reclaiming its Feb 16. all-time high of $423.74. Nevertheless, the security still sports a 37.2% year-to-date lead, with the 120-day moving average containing most of INTU's pullbacks since April 2020. 

Analysts are overwhelmingly bullish on the equity. Coming into today, 12 considered the stock a "strong buy," compared to just three "hold" ratings. Plus, the 12-month consensus price target of $451.61 is a 14.3% premium to current levels. 

Options traders have taken a much different stance. In fact, over six puts have been picked up for every call during the past two  weeks at the  International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all but 2% of readings from the past 12 months, suggesting a much healthier-than-usual appetite for long puts of late. 

Short sellers have been targeting INTU in droves, too. Short interest surged 26.5% in the most recent reporting period. The 2.91 million shares sold short still make up a slim 1.1% of the stock's available float, though, and it would take a little over two days to buy back these bearish bets at INTU's average daily pace of  trading. 

Published on May 12, 2021 at 9:25 AM
  • Earnings Preview

Breaking Down This Vehicle Giant's Earnings History

by Schaeffer's Digital Content Team
 
Published on May 12, 2021 at 9:16 AM
  • Earnings Preview
 
Published on May 12, 2021 at 9:06 AM
  • Opening View

Stock futures are poised to open lower this morning, reeling as investors again kick tech shares to the curb and key inflation data poured in. After logging its worst day since February, the Dow Jones Industrial Average (DJI) was last seen down over 120 points. Meanwhile, FAANG stocks, amongst other notable tech and semiconductor names, have S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures firmly in the red as well.

Key inflation data released showed an acceleration in April -- its fastest since September 2008. According to the Labor Department, the Consumer Price Index (CPI) rose 4.2% year-over-year, well above estimates of 3.6%. In addition, core CPI increased 3% in the same timespan. 

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

  • Schaeffer's Senior Quantitative Analyst Rocky White takes a look at a century-old trading theory
  • History says Roku stock could be a good bet.
  • Plus, more on Amazon's latest lawsuit; FUBO soars after upping its full-year outlook; and a lot to love about Wendy's stock.

Futures Chart May 12

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts traded on Tuesday, and 817,029 put contracts. The single-session equity put/call ratio fell to 0.57 and the 21-day moving average stayed at 0.49.
  2. Amazon.com, Inc. (NASDAQ:AMZN) is making headlines this morning, after winning an appeal against the European Commission. The European Union's (EU) general court said the commission failed to prove that the Big Tech titan received an unfairly favorable $303 million tax deal, with the money in question being owed to Luxembourg -- home to the company's European subsidiary. In response, AMZN was last seen marginally lower, down 0.2% pre-market, but the equity is still up 33.8% year-over-year.
  3. The shares of sports streaming provider Fubotv Inc (NYSE:FUBO) are soaring in electronic trading, last seen up 23.5%, after reporting first-quarter revenue that topped Wall Street's estimates. And although the company turned in a wider-than-expected quarterly loss, a raised full-year outlook is helping the struggling security, which is down 36.9% in 2021.
  4. Fast food name Wendys Co (NYSE:WEN) is up 5.2% before the open, after stepping into the earnings confessional, where it bested top- and bottom-line estimates for the first quarter. In addition, Wendy's said it saw higher comparable-restaurant sales, leading the company to raise its full-year outlook, hike its dividend, and increase its stock repurchase plan. Today's positive price action will add to WEN's 4% year-to-date lead.
  5. Attention today turns toward the latest Federal budget balance.

OV Buzz May 12

Asian, European Investors Monitor Latest Inflation Data

Asian markets were mixed on Wednesday, after fresh data out of China showed both consumer and factory gate prices rising, with the latter growing at its fastest pace in thee and a half years. Additionally, investors remain worried about inflation, as well as potential Covid-19 restrictions in Taiwan after an outbreak. Pacing the laggards was Japan’s Nikkei -- which fell 1.6% after Nissan reported outsized annual operating losses -- followed by South Korea’s Kospi's 1.5% dip. Meanwhile, Hong Kong’s Hang Seng added 0.8%, and China’s Shanghai Composite rose 0.6%.

European markets are mostly higher, on the other hand, as earnings from the likes of German giants Allianz and Bayer roll in. Investors are also closely monitoring the latest concerning inflation data in the U.S. In turn, London’s FTSE 100 was last seen up 0.7%, the German DAX is up 0.3%, and France’s CAC 40 is slightly below breakeven with a 0.03% loss.

Published on May 12, 2021 at 8:00 AM
  • Indicator of the Week
    
Published on May 12, 2021 at 6:38 AM
  • Buzz Stocks

Today's Stock Market News & Events: 5/12/2021

by Schaeffer's Digital Content Team

Things attention turns toward the consumer price index (CPI) and core CPI readings. In addition, the latest Federal budget balance is due out today.

The following companies are slated to release quarterly earnings reports today, May 12:

APi Group Corp. (NYSE:APG -- $20.85) provides safety, specialty, and industrial services. APi Group will report its Q1 earnings of 2021 before the bell today.

Dream Finders Homes Inc. (NASDAQ:DFH -- $27.95) operates as a holding company for Dream Finders Holdings LLC. Dream Finders Homes will report its Q1 earnings of 2021 before the bell today.

Dynatrace Inc. (NYSE:DT -- $45.38) provides a software intelligence platform for the enterprise cloud applications. Dynatrace will report its Q1 earnings of 2021 before the bell today.

Lumentum Holdings Inc. (NASDAQ:LITE -- $82.14) manufactures and sells optical and photonic products. Lumentum will report its Q1 earnings of 2021 before the bell today.

SFL Corp. Ltd. (NYSE:SFL -- $7.95) engages in the ownership, operation, and chartering out of vessels and offshore related assets. SFL will report its Q1 earnings of 2021 before the bell today.

Tower Semiconductor Ltd. (NASDAQ:TSEM -- $27.57) an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices. Tower Semiconductor will report its Q1 earnings of 2021 before the bell today.

The Wendy's Co. (NASDAQ:WEN -- $22.80) operates as a quick-service restaurant company. Wendy's will report its Q1 earnings of 2021 before the bell today.

Wix.com Ltd. (NASDAQ:WIX -- $289.90) develops and markets a cloud-based platform. Wix.com will report its Q1 earnings of 2021 before the bell today.

Wolverine World Wide Inc. (NYSE:WWW -- $42.74) designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories. Wolverine will report its Q1 earnings of 2021 before the bell today.

1Life Healthcare Inc. (NASDAQ:ONEM -- $38.78) operates a membership-based primary care platform. 1Life Healthcare will report its Q1 earnings of 2021 after the market closes today.

Amdocs Ltd. (NASDAQ:DOX -- $74.80) provides software and services to the communications, cable and satellite, entertainment, and media industry service providers. Amdocs will report its Q1 earnings of 2021 after the market closes today.

American Well Corp. (NYSE:AMWL -- $12.71) operates as a telehealth company. American Well will report its Q1 earnings of 2021 after the market closes today.

Boot Barn Holdings Inc. (NYSE:BOOT -- $72.20) operates as a lifestyle retail chain. Boot Barn Holdings will report its Q1 earnings of 2021 after the market closes today.

Bumble Inc. (NASDAQ:BMBL -- $50.65) provides online dating and social networking platforms. Bumble will report its Q1 earnings of 2021 after the market closes today.

Datto Holding Inc. (NYSE:MSP -- $24.92) provides cloud-based software and technology solutions. Datto Holding will report its Q1 earnings of 2021 after the market closes today.

GoHealth Inc. (NASDAQ:GOCO -- $11.88) operates as a health insurance marketplace. GoHealth will report its Q1 earnings of 2021 after the market closes today.

GrowGeneration Corp. (NASDAQ:GRWG -- $39.96) owns and operates retail hydroponic and organic gardening stores. GrowGeneration will report its Q1 earnings of 2021 after the market closes today.

Jack in The Box Inc. (NASDAQ:JACK -- $122.32) operates and franchises Jack in the Box quick-service restaurants. Jack in The Box will report its Q1 earnings of 2021 after the market closes today.

ON24 Inc. (NYSE:ONTF -- $38.82) provides a cloud-based digital experience platform. ON24 will report its Q1 earnings of 2021 after the market closes today.

Pan American Silver Corp. (NASDAQ:PAAS -- $34.66) engages in the exploration, development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines. Pan American Silver will report its Q1 earnings of 2021 after the market closes today.

Poshmark Inc. (NASDAQ:POSH -- $44.05) operates as a social marketplace for new and secondhand style products. Poshmark will report its Q1 earnings of 2021 after the market closes today.

Sonos Inc. (NASDAQ:SONO -- $34.87) designs, develops, manufactures, and sells multi-room audio products. Sonos will report its Q1 earnings of 2021 after the market closes today.

Tattooed Chef Inc. (NASDAQ:TTCF -- $17.09) produces and sells a portfolio of frozen foods. Tattooed Chef will report its Q1 earnings of 2021 after the market closes today.

Vroom Inc. (NASDAQ:VRM -- $36.88) operates an e-commerce platform for buying and selling of new and used cars. Vroom will report its Q1 earnings of 2021 after the market closes today.

ContextLogic Inc. (NASDAQ:WISH -- $11.78) operates as a mobile ecommerce company. ContextLogic will report its Q1 earnings of 2021 after the market closes today.

Looking ahead to tomorrow, more initial and continuing jobless claims data are due out. Plus, with inflation a hot topic of late, the producer price index (PPI) will garner some much earned attention. All economic dates listed here are tentative and subject to change.

Published on May 11, 2021 at 4:41 PM
  • Market Recap
  
Published on May 11, 2021 at 1:35 PM
  • Buzz Stocks
 
Published on May 11, 2021 at 1:31 PM
  • Intraday Option Activity
So far, 32,000 puts have crossed the tape, with puts running at double what's typically seen at this point. The weekly 5/14 325-strike put, where new positions are being opened, is seeing the most activity. 
Published on May 11, 2021 at 1:28 PM
  • Quantitative Analysis

Earlier this month, streaming name Roku Inc (NASDAQ:ROKU) locked in eight-consecutive losses before an upbeat earnings report saved the equity, helping it jump to $337.24 on May 7, though the security has since pulled back once again. However, investors shouldn't be too concerned yet, as this dip has Roku stock trading near a bullish trendline, per data from Schaeffer's Senior Quantitative Analyst Rocky White.

Specifically, ROKU has come within one standard deviation of its 200-day moving average following a lengthy stretch above the trendline, defined for this study as having traded north of the moving average 60% of the time in the past two months and in eight of the last 10 trading days. The equity has seen two similar pullbacks within the past three years, and one of those instances resulted in an average 21-day gain of 18.2%.

ROKU Chart May 11

From its current perch at $308.43, a move higher of similar magnitude would put ROKU at $364.56. In simpler terms, this would give the equity the boost it needs to reclaim its 2021 breakeven and add to its 133.6% year-over-year lead. 

Now that earnings are in the rearview, a volatility crush means the stock's near-term options are attractively priced at the moment. Roku stock's Schaeffer's Volatility Index (SVI) stands at 56%, in the low 7th percentile of its annual range, indicating that now is a good time to jump aboard the streaming name's next move with options. What's more, Roku stock has tended to exceed these volatility expectations during the past 12 months. This is based on its Schaeffer's Volatility Scorecard (SVS) of 96 (out of 100).

Published on May 11, 2021 at 12:15 PM
  • Earnings Preview

What's Next for Ingles Markets Stock Post-Earnings

by Schaeffer's Digital Content Team
 

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