Earnings Season Swings: Anticipating Major Stock Movements
As the first-quarter earnings season reaches its peak, many high-profile companies are poised for substantial market fluctuations. The LA News Center reports that investor optimism remains high, with over 77% of S&P 500 firms surpassing analyst projections. S&P 500 earnings have grown by 5.6% annually in the first quarter, according to LSEG data.
This week, a notable group of companies is scheduled to release their earnings, including Super Micro Computer, Amazon, Moderna, and Peloton. Utilizing options market expectations, CNBC Pro has identified potential candidates for significant post-earnings movements.
Top Movers: High Implied Volatility
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Peloton: This fitness company leads the pack with an implied volatility of 21%. Despite a 3% gain on Monday, Peloton’s stock has plunged over 46% year-to-date due to challenges in retaining app subscribers. Despite recent initiatives, Bank of America remains cautious about subscriber growth and maintains an underperform rating.
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Super Micro Computer and Advanced Micro Devices: Both chipmakers are poised for potential swings of up to 12.6% and 7.4%, respectively. Despite year-to-date declines, JPMorgan remains bullish on Super Micro, citing a strong product portfolio and long-term growth prospects in the expanding AI server market.
Pinning Down Pinterest’s Prospects
Pinterest is another highly anticipated stock with potential volatility of 11.2%. Goldman Sachs anticipates robust first-quarter revenue for the image-sharing giant due to a favorable digital advertising environment. However, it remains cautious about potential revenue hurdles in the second half of the year.
Additional Movers to Watch
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Amazon: The e-commerce behemoth is expected to report robust growth, driven by its cloud computing and subscription services.
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Moderna: The pharmaceutical giant faces gauging investor sentiment after a disappointing fourth quarter.
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UPS: The shipping and logistics company could benefit from ongoing supply chain disruptions and global trade activity.
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Honeywell: The conglomerate faces potential volatility due to its exposure to aerospace and defense sectors.
Implied Price Movements
To gauge potential price movements, CNBC Pro has calculated the following implied swings:
- Peloton: 21%
- Super Micro Computer: 12.6%
- Advanced Micro Devices: 7.4%
- Pinterest: 11.2%
- Amazon: 7.1%
- Moderna: 8.2%
- UPS: 8.9%
- Honeywell: 6.2%
Stay Tuned for Earnings Impact
The upcoming earnings reports will play a crucial role in shaping market sentiment and stock prices. Investors should closely monitor the performance of these key companies to navigate the current market volatility and identify potential opportunities for growth.
Data sourced from: cnbc.com
