As the busy first-quarter earnings season progresses, big swings may very well be in store for several stocks yet to report. First-quarter results gave stocks a lift this week, as greater than 77% of corporations within the S&P 500 beat analysts’ expectations, in accordance with FactSet. The S&P 500’s first-quarter annual earnings growth is about 5.6%, in accordance with Friday data from LSEG. This week, nearly a 3rd of the businesses within the S&P 500 and 20% of the Dow Jones Industrial Average will report earnings. The available names range from well-known AI corporations Super Micro Computer and Amazon to healthcare giants like Moderna. CNBC Pro searched for names with options expiring on Friday that might see significant upside or downside after earnings, based on investor expectations in the choices market. We took 85% of the whole premium of an at-the-money straddle and used that to calculate the value movement. Here are the names that fit the factors: According to FactSet, Peloton has the very best expected post-earnings implied change at 21%. The stock, which rose about 3% on Monday, has fallen greater than 46% this yr because it has struggled to retain app subscribers. Earlier this yr, the house fitness brand quietly removed the unlimited free membership tier for its app, lower than a yr after its launch, after the corporate realized it had didn’t convert enough users into paying subscribers. Ahead of Peloton’s earnings on Thursday, Bank of America analyst Curtis Nagle reiterated his Underperform rating and $3.25 price goal, suggesting shares could rise by just 1.3 % could increase. “Despite new initiatives such as the launch of the partnership with TikTok in January, we remain cautious about subscriber growth, which is still accelerating,” Nagle wrote in a note Monday. “In our view, a return to sustainable user growth (along with cost efficiency and the elimination of debt maturities) would be required for a significant improvement in investor sentiment and share price.” Chipmakers Super Micro Computer and Advanced Micro Devices could also see larger moves this week as they might rise and fall by as much as 12.6% and seven.4% respectively. Both stocks have fallen greater than 11% this yr and have lost some momentum as chipmakers’ rally has cooled in recent weeks. JPMorgan maintained its bullish stance on Super Micro on Tuesday, reiterating its obese rating and $1,150 price goal, implying a possible upside of greater than 34%. Despite the stock’s decline this quarter, the corporate said its long-term expectations for Super Micro’s revenue and market share as a part of the general AI server market remain unchanged. “Super Micro is positioned with a strong product portfolio that includes complete rack-scale solutions and liquid-cooled systems, and a unique building block approach to product development that enables rapid product updates given the AI-driven strong demand outlook for computing,” JPMorgan analyst Samik said Chatterjee. Image-sharing platform Pinterest could rise or fall by 11.2%, in accordance with FactSet. Goldman Sachs said Pinterest could see higher revenue in the primary quarter, partly as a consequence of a stronger digital promoting environment. However, the corporate’s sales may decline barely within the second half of this yr, the corporate said, while still maintaining its buy rating.
Thursday, November 28, 2024
