Welcome to Extreme Investor Network, where we provide expert insights and analysis on the latest trends in the world of investing. The busiest week of earnings season is upon us, with approximately 160 of the S&P 500 companies gearing up to report their quarterly results. This presents a prime opportunity for investors to capitalize on potential major moves in the stock market.
As Wall Street navigates through a period of sector rotation, where investors are shifting focus from technology sector winners to smaller-cap names, it’s essential to stay on top of the latest earnings reports. CNBC Pro recently screened FactSet data to identify stocks with market caps of at least $1 billion that are expected to release their second-quarter numbers this week. By analyzing options market activity, we can pinpoint stocks that are likely to experience significant volatility post-earnings.
One standout stock on our radar is Snap, scheduled to report earnings on Thursday after the bell. With an expected move of 17%, Snap has been under pressure recently, down nearly 21% in 2024. Despite this, analysts remain divided on the stock, with 30 out of 42 analysts maintaining a hold rating. However, with 10 analysts issuing a buy or strong buy rating and an average price target of $15, there could be potential upside for Snap.
In the auto industry, Carvana and Hertz are also poised to make waves with expected moves of 15.1% and 15%, respectively. Carvana, which has seen its stock surge over 140% this year, continues to attract bullish sentiment from analysts. JPMorgan analyst Rajat Gupta sees further upside potential for Carvana, citing the company’s strategic investments in infrastructure and network as key drivers of growth.
Lastly, Meta, formerly known as Facebook, is set to release its earnings on Wednesday after the bell, with an expected move of 8.3%. Despite its market cap of over $1 trillion, Meta could still experience significant movement post-earnings. Analysts are overwhelmingly bullish on Meta, with 55 out of 63 analysts holding a buy or strong buy rating. Wolfe Research analyst Shweta Khajuria anticipates that Meta will surpass second-quarter estimates and projects over 33% upside for the stock.
As we enter a pivotal week in earnings season, it’s crucial for investors to stay informed and capitalize on potential opportunities in the market. Stay tuned to Extreme Investor Network for expert analysis and unique insights to help you navigate the ever-changing landscape of investing.