Here are the stocks set to have the wildest ride this week on earnings
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Stock market volatility is ramping up, and some companies slated to report earnings this week could see some sharp moves. The equity market is coming off of a tough slide last week — when the Dow and S & P 500 saw their worst weekly performances since last year — as concerns about persistent inflation and a rough start to the first-quarter earnings season drag down investor sentiment. Overall, nearly 40 S & P 500 names will have reported earnings by the end of the week, according to FactSet. Analysts came into the season forecasting more than 3% earnings growth for S & P 500 companies. If that’s the case, it will mark the third straight quarter of earnings expansion. Amid an uncertain market environment, investors may want to buckle up ahead of certain earnings reports this week. CNBC Pro screened for stocks that stand to have significant post-earnings moves in either direction, based on moves in the options market. Take a look at the names below: Netflix and United Airlines have the highest expected post-earnings implied move of 7.6%, according to FactSet. Netflix shares have raced ahead of the broader market this year, gaining 26.3%. Ahead of the streaming giant’s earnings due Thursday, Deutsche Bank reiterated its hold rating and raised its price target on the stock to $550 per share from $525, which implies 11.7% potential decrease. “We believe that in order for the stock to appreciate further, consensus estimates for 2024-2025 will need to be revised higher, as we believe a lot is already priced in at these valuation level,” analyst Bryan Kraft wrote in a note. “We think incremental subscriber growth from paid sharing will continue into this year, but at some point in 2024 will normalize at a lower level of net adds, with an ongoing benefit from a larger TAM and a less leaky customer acquisition funnel. Some semiconductor names also made the cut. Shares of Dutch semi play ASML and Taiwan Semiconductor could gain — or fall — as much as 5.6% and 5.8%, respectively. ASML shares are up nearly 28% for the year, while Taiwan Semiconductor has jumped more than 37%, fueled by strong AI-driven demand for chips. ASML was presented as the top stock idea from Dilation Capital’s Vijay Shilpiekandula, who was named the Sohn Idea Contest Winner earlier this month. ASML is an “R & D powerhouse” and “high-quality business” that looks attractive on a growth-adjusted basis compared to peers, the investor said on April 3. Financial heavyweight Blackstone and regional bank names Citizens Financial , Fifth Third and Comerica could also have a significant post-earnings move this week.
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