Buckle up: These stocks are expected to have the wildest moves this week
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It’s time to buckle up: Investors holding these stocks could be in for a wild ride this week. A review of companies set to report earnings this week shows that some names may post sharp moves following their results, according to CNBC calculations based on FactSet data. Those calculations are based on what’s called an options implied volatility, which refers to how much a stock’s price can change, up or down, after a major event such as an earnings announcement. For example, Snap , which reports Tuesday, could see its stock price move up or down about 17% following the news. The social media stock has already had a choppy start to the week, down more than 3% Monday after Snap said it’s laying off 10% of its global workforce . Wall Street is about halfway through a mixed reporting season. After a lackluster start to fourth-quarter results, following an early slate of weak reports from banks, earnings have improved recently due to some rosy results from the tech sector, according to a Friday note from FactSet senior earnings analyst John Butters. As of Friday, FactSet data shows S & P 500 earnings are tracking to have risen 1.6% on a year-over-year basis in the fourth quarter, up from a decline of 1.8% as of Jan. 19. But there are more reports to get through in the week ahead including results from major companies such as Ford Motor, the Walt Disney Company and PepsiCo. Here are some other stocks that may move the most in response to news this week. Spirit Airlines , which is set to report fourth-quarter results on Thursday, could potentially move 15% in either direction following the announcement. Last month, the airline operator raised its fourth-quarter guidance and said it’s planning to refinance its debt. But Spirit has been crushed this year, tumbling 62% in the wake of a federal judge’s decision to block JetBlue’s planned acquisition of the budget carrier. The two airlines are now seeking an expedited appeal of that decision. Affirm , the buy now, pay later financial services company, could move up or down 15% following its earnings results, which are set for release Thursday. In 2024, the stock is already down 16% after soaring more than 400% in 2023. In December, Morgan Stanley downgraded Affirm to underweight from equal weight, saying its valuation after last year’s surge is hard to justify. Roblox and Palantir Technologies also made the list of implied large moves in reaction to earnings.
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