Welcome to Extreme Investor Network, your go-to source for the latest insights and trends in the world of investing. As we navigate through the busy first-quarter earnings season, there are several stocks still set to report that could be due for big swings. First-quarter earnings have been a major driver of the recent stock market surge, with over 77% of companies in the S & P 500 surpassing analysts’ expectations, according to FactSet.
According to LSEG data from Friday, the S & P 500’s year-over-year earnings growth for the first quarter is at about 5.6%. This week, a significant number of companies in the S & P 500 and the Dow Jones Industrial Average are scheduled to report earnings, ranging from big-name AI plays like Super Micro Computer and Amazon to health-care giants such as Moderna.
Here at Extreme Investor Network, we have screened for the names with options expiring Friday that could see significant post-earnings moves based on investors’ expectations in the options market. By taking 85% of the total premium of an at-the-money straddle, we have calculated the price movement for these stocks.
One such stock is Peloton, which is expected to have the highest implied post-earnings move at 21%, according to FactSet. With the stock falling more than 46% this year, analysts are cautious about its subscriber growth potential. Bank of America analyst Curtis Nagle reiterated his underperform rating and $3.25 price target ahead of Peloton’s earnings, expressing concerns about sustained user growth.
Chipmakers Super Micro Computer and Advanced Micro Devices are also on our radar, as they could potentially see major moves of up to 12.6% and 7.4%, respectively, this week. Despite some recent drops in their stock prices, JPMorgan remains bullish on Super Micro, citing the company’s strong product portfolio and position in the AI server market.
Another stock to watch is image-sharing platform Pinterest, which could swing up or down by 11.2%, according to FactSet. Goldman Sachs anticipates higher first-quarter revenue for Pinterest due to a strong digital advertising environment, although some challenges may arise in the second half of the year.
Stay tuned to Extreme Investor Network for more updates on these and other stocks as we continue to provide valuable insights and analysis to help you make informed investment decisions. Remember, knowledge is power in the world of investing.
