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Earnings

6:24 a.m. May 14, 2021 - By Emily Bary
DoorDash, Airbnb stocks upgraded at Wells FargoWells Fargo analyst Brian Fitzgerald upgraded shares of Airbnb Inc. and DoorDash Inc. to overweight from equal weight Friday, following that he said showed momentum coming out of the pandemic. "Within our coverage group, we view ABNB as likely the strongest play on the future of remote and hybrid work," he wrote, while maintaining a $200 price target on Airbnb's stock. He was encouraged by momentum in urban regions, which represented 40% of nights booked in the latest quarter. In Fitzgerald's view, a rise in urban travel is "a shift back to one of Airbnb's power alleys." For DoorDash, he wrote that the company's beat-and-raise quarter "is large enough to offset the rotation to 'value' that has afflicted 'growth' stocks" so far this year. Upbeat indications included sequential and year-over-year increases in average order value among existing customers and a more than doubling of subscriptions to the company's DashPass product relative to a year earlier, he wrote. Fitzgerald raised his price target on DoorDash's stock to $170 from $165. Airbnb shares are up 2.2% in Friday morning trading, while DoorDash shares are up 14.8%.
11:06 a.m. April 30, 2021 - By Tomi Kilgore
S&P 500 earnings growth at the half way point is nearly double what was expectedWith the S&P 500 first-quarter earnings reporting season finally more than half over, as 60.4% of the index's components having reported results, the blended EPS growth estimate is now nearly double what it was when the reporting started, and about triple what it was at the end of the fourth quarter. The overall blended earnings-per-share growth rate, which includes reported results and consensus analyst estimates for yet-to-be-reported EPS, is 45.7% through Friday morning, according to FactSet data, nearly three weeks ago. At the end of the fourth quarter, the growth estimate was 15.6%. The current growth outlook is the highest since the first quarter of 2010, when earnings increased 55.4%. The sectors showing the biggest growth are consumer discretionary at 180.1% and financials at 133.5%, while industrials is the only sector currently showing an EPS decline, of 6.4%. The reason for the big improvement in the growth outlook is that 86% of companies that have reported have beat expectations, which is on pace to the the highest percentage since FactSet started tracking beat percentages in 2008. The S&P 500 is down 0.6% in afternoon trading, but has gained 6.0% in April.
9:36 a.m. April 29, 2021 - By Tomi Kilgore
Teladoc stock tumbles after another quarter of wider-than-expected loss prompts multiple price target cutsShares of Teladoc Health Inc. tumbled 9.3% toward a near 11-month low in afternoon trading Thursday, after the provider of tele-healthcare services reported yet another quarterly loss that was wider than expected. The stock has now plunged 42.6%, since the stock shot up 140% in a year to a record $294.54 on Feb. 8 as the company was a seen as a beneficiary of the COVID-19-related stay-at-home measures. But late Wednesday, the company reported a net loss that widened to $199.6 million, or $1.31 a share, from $29.6 million, or 40 cents a share, missing the FactSet per-share loss consensus of 54 cents, marking the fifth-straight miss. The company has reported a quarterly loss for every quarter since it went public in July 2015. After Teladoc's report, no less than 14 of the 31 analysts surveyed by FactSet lower their price targets, to bring the average target down to $241.07 from $259.81 at the end of March. The stock, which is headed toward the lowest close since June 9, 2020, has now shed 15.4% year to date, while the SPDR Health Care Select Sector ETF has gained 6.9% and the S&P 500 has advanced 8.9%.
2:36 p.m. April 28, 2021 - By Emily Bary
Discovery is seeing 'accelerating' streaming momentum, analyst says in upgradeDiscovery Inc. is seeing "accelerating" momentum with its streaming business, one reason that Wells Fargo analyst Steven Cahall now feels bullish on the stock. He upgraded Discovery shares to overweight from equal weight late Wednesday, arguing that "the price is right" following a period of volatility with the shares that temporarily gave them a "non-fundamental premium." Now that the stock has come down more than 50% from its March high, Cahall sees a return to a "fundamental setup." Though Discovery shares dropped 3.9% in Wednesday trading , Cahall saw "only good news" for Discovery's direct-to-consumer business as first-quarter paying subscribers of 13 million met his estimate. The company also disclosed that it has 15 million subscribers as of today, which is "tracking ahead for Q2 with 1-1.5 million net adds per month," according to Cahall. He wrote that he's "always liked the differentiated content as a setup for the DTC pivot, which is now accelerating ahead of our expectations." He lowered his price target to $46 from $59, accounting for a decline in the stock over recent weeks. Shares were up more than 1% in after-hours trading Wednesday.
10:56 a.m. April 28, 2021 - By Tomi Kilgore
Apple stock options point to smaller than usual post-earnings moveShares of Apple Inc. rose 0.1% in afternoon trading Wednesday, ahead of due out after the closing bell, while options prices are pointing to a smaller-than usual post-earnings price move. An options strategy known as a "straddle," which is a pure volatility play that involves the simultaneous buying of at-the-money bullish (call) and bearish (put) options expiring at the end of week, suggest a $4.74 move (about 3.5%) in either direction on Thursday in reaction to results, according to data provided by Options Research & Technology Services. Over the past 12 quarter, the average one-day post-earnings move in Apple's stock has been $6.27 in either direction, according to ORATS, which would imply a 4.7% move at current prices. The stock has slipped 1.9% over the past three months, while the Dow Jones Industrial Average has gained 10.9%.
7:25 a.m. April 27, 2021 - By Tomi Kilgore
Dow's stock gets a boost as Argus analyst recommends buyingShares of Dow Inc. rose 0.7% in morning trading Tuesday, after Argus Research analyst Bill Selesky turned bullish on the chemicals and specialty materials company, citing signs of increased demand and stronger pricing. Selesky raised his rating to buy from hold, and set his stock price target at $69, which is about 10% above current levels. "We expect Dow to benefit in the near term from stronger pricing for commodity chemicals and increased demand in North America and China, and are significantly boosting our EPS estimates for both 2021 and 2022," Selesky wrote in a note to clients. "We also have a favorable view of Dow's low cost structure, solid cash flow, declining capital spending requirements, and sustainable dividend, with a yield of about 4.6%." Dow reported last week , and was well above expectations, helped by across all operating segments. The stock has climbed 15.1% over the past three months, while the Dow Jones Industrial Average has advanced 12.0%.
2:34 a.m. April 26, 2021 - By Tomi Kilgore
Etsy stock falls after KeyBanc analyst backs away from long-time bullish stanceShares of Etsy Inc. fell 1.9% in premarket trading Monday, after KeyBanc analyst Edward Yruma backed away from his long-time bullish call on the online crafts marketplace, citing valuation and a lower near-term likelihood of positive earnings revisions. Yruma downgraded Etsy to sector weight, after being at overweight since October 2017. He said after outperforming the broader market by a wide margin since his upgrade, valuation looks "fair" and current consensus analyst expectations look "reasonable." "We believe that Etsy remains one of the best long-term growth opportunities in our coverage," Yruma wrote in a note to clients. "However, we move to Sector Weight given what we view as a fair valuation and lower likelihood of near-term earnings beats." The stock has soared 224.2% over the past 12 months through Friday, while the Nasdaq Composite has climbed 62.3% and the S&P 500 has advanced 47.4%.
4:00 a.m. April 23, 2021 - By Tomi Kilgore
American Airlines stock bounces after Raymond James analyst backs away from bearish stanceShares of American Airlines Group Inc. climbed 1.2% in premarket trading Friday, after analyst Savanthi Syth at Raymond James said she was no longer bearish on the air carrier, as the recent selloff has provided to a more-balanced risk-reward profile. Syth raised her rating to market perform, after being at underperform since November. The stock fell 4.5% on Thursday after , to mark the 12th decline in the past 13 sessions, a stretch in which the stock tumbled 17.2%. Over the same time, the U.S. Global Jets ETF had lost 8.3% while the S&P 500 gained 1.4%. "The healthy domestic/near-international recovery (particularly in markets where American is strong), funds from PSP2 and PSP3, as well as pension relief included with PSP3 have lowered risks in the near- to medium-term relative to our late-November downgrade of AAL," Syth wrote in a note to clients.
10:42 a.m. April 21, 2021 - By Tomi Kilgore
Netflix stock drops below the 200-DMA again, but that might not be such a bearish signal yetShares of Netflix Inc. sank 7.2% in afternoon trading Wednesday, putting them on track to close below the 200-day moving average (DMA), in the wake of the streaming video company's . Many on Wall Street see the 200-DMA as a dividing line between longer-term uptrends and downtrends, but closing below the line hasn't always marked a bearish turn. While the stock is headed for the third close below the 200-DMA in six weeks, it is still up 3.4% over that time. The stock's last foray below the 200-DMA was in March 2020, as the stock closed below the line in four times in a five-day stretch, but that marked the post-COVID-19-crisis low. The two times before that the stock dropped below the 200-DMA, in October 2018 and July 2019, led to significant declines. Once difference between the decline that was limited and those that were extended is that with the limited one, the 50-DMA stayed above the 200-DMA, while the 50-DMA crosses below the 200-DMA soon after the stock price did for the extended declines. Currently, the 50-DMA extends to $534.15, according to FactSet, well above the 200-DMA at $514.19. Netflix shares have lost 5.7% year to date, while the S&P 500 has gained 10.9%.
4:27 a.m. April 16, 2021 - By Emily Bary
Affirm stock could head higher amid 'hypergrowth' of buy-now-pay-later offerings, analyst says in upgradeShares of Affirm Holdings Inc. are up 2% in premarket trading Friday after Seaport Global analyst Chris Brendler upgraded the stock to buy from neutral and set an $80 price target. He sees the stock as more attractive following a 34% selloff since he initiated coverage of the company 10 weeks back, whereas the S&P 500 has gained 7% in that time. "In our view, this underperformance comes despite increasing evidence that BNPL [buy-now-pay-later] is going to be huge in the US and based on a string of encouraging data points, we expect Affirm to materially exceed near-term expectations," Brendler wrote in a note to clients. The company offers financial options that let consumers pay in installments, and this trend seems to be reaching a "hyper growth adoption phase in the U.S.," Brendler continued, which could set Affirm up for success. "We also want to be in front of Affirm's Shopify partnership which has the potential to significantly accelerate Affirm's growth," he wrote. "Recent data suggests the wait is nearly over, and we expect management to provide an update on the upcoming earnings call."
4:32 a.m. April 15, 2021 - By Tonya Garcia
American Eagle Outfitters shares jump as Q1 revenue approaches $1 billionAmerican Eagle Outfitters Inc. stock rose nearly 5% in Thursday premarket trading after the retailer's first-quarter business update showed revenue that is "on track" to exceed $1 billion. "Demand has accelerated across the American Eagle and Aerie brands, generating strong margins, higher full-priced selling and reduced promotions," the company said. The FactSet sales consensus is for $974 million. American Eagle is scheduled to report first-quarter earnings on May 1. BMO Capital Markets expects the momentum to continue into the second quarter. "[T]ighter industrywide inventory, coupled with stronger consumer demand, bolstered by stimulus is presenting a trifecta yielding a surge in spending power at a time when demand is already outstripping supply," analysts wrote in a note. BMO rates American Eagle market perform with a $36 price target, up from $26. American Eagle stock has rallied 64.3% for the year to date while the S&P 500 index has gained 9.8% for the period.
4:21 a.m. April 14, 2021 - By Tomi Kilgore
Exxon Mobil stock gains after Raymond James analyst backs off long-time bearish stanceShares of Exxon Mobil Corp. rose 1.0% in premarket trading Wednesday, after Raymond James analyst Justin Jenkins backed away from his more-than two-year long bearish stance, citing the emergence of earnings momentum and "less negative" relative valuation. "With the recent downdraft in the stock (off ~10% over the past month), we think it's the right time to get less negative in our outlook for [Exxon Mobil]," Jenkins wrote in a note to clients. "1Q21 earnings indicators show a solid measure of improvement, pushing the company in the right direction of that part of the "show me" story." Jenkins upgraded the oil giant's stock to market perform after being at underperform since November 2018. He said he believes the risk-vs.-reward profile "skews less negative in the context of our relative optimism on oil prices," and the likelihood for a return to normal in Exxon Mobil's downstream business. Despite the selloff in the past month, Exxon Mobil's stock has hiked up 35.2% year to date through Tuesday, while the SPDR Energy Select Sector ETF has rallied 26.3%, crude oil futures have run up 26.2% and the S&P 500 has advanced 10.3%. (This replaces an earlier item that incorrectly reported the analyst's first name. It has been corrected.)
11:12 a.m. April 12, 2021 - By Tomi Kilgore
Alibaba's stock rallies toward biggest gain in nearly 4 years as antitrust fine removes overhangShares of Alibaba Group Holding Ltd. shot up 9.1% in afternoon trading Monday, putting them on track for the biggest one-day gain in four years, as investors expressed relief following . The China-based ecommerce giant's Chief Executive Daniel Yong Zhang said in a conference call after the fine, "we don't expect material negative impact" following changes to comply with the regulator's orders. The company said it will not appeal the decision. "Positively, Alibaba does not expect further investigations on this matter, and we believe the removal of this overhang could be a positive for the shares," Raymond James analyst Aaron Kessler wrote in a note to clients. Kessler trimmed his stock price target to $330 from $350, to reflect increased investments in grocery and local deals categories as China-based ecommerce giant looks to expand in lower-tier cities, but reiterated his strong buy rating. Truist's Youssef Squali reiterated his buy rating and $330 stock price target, saying the long-term prospects of Alibaba remain "highly attractive." The stock, which is headed for the biggest one-day gain since it rose 13.3% on June 8, 2017, has advanced 8.0% over the past three months, while the iShares MSCI China ETF has slipped 3.9% and the S&P 500 has gained 8.4%.
4:47 a.m. April 9, 2021 - By Tomi Kilgore
Honeywell's stock jumps toward a record after Deutsche Bank analyst says its the right time to buyShares of Honeywell International Inc. rose 2.3% toward a record high in premarket trading Friday, after Deutsche Bank analyst Nicole DeBlase turned bullish, saying the aerospace and automotive products company has "the right exposures at the right time." DeBlase raised her rating to buy from hold. She said that despite attractive end-market exposures, including leverage to a global economic reopening and "best-in-class" quality metrics, the stock has been the worst performer in the multi-industry and electrical engineering (MI/EE) group this year. "We take this opportunity to upgrade the stock, particularly as we now see 5% and 10% upside to consensus EPS forecasts for 2021 and 2022, among the most attractive in the MI/EE group," DeBlase wrote in a note to clients. Separately, J.P. Morgan analyst Stephen Tusa raised his stock price target to $250 from $200 while reiterating his overweight rating, citing the "best mega-cap setup in 20 years." The stock has gained 3.4% year to date through Thursday, while the SPDR Industrial Select Sector ETF has climbed 12.4% and the Dow Jones Industrial Average has rallied 9.5%.
3:57 a.m. April 6, 2021 - By Ciara Linnane
Aphria revenue estimates lowered by Stifel ahead of Q3 earnings on weak cannabis consumption trendsStifel analysts lowered their fiscal third-quarter revenue estimates for Canadian cannabis company Aphria Inc. on Tuesday ahead of their release next Monday, putting their revenue and EBITDA forecasts below consensus. Analysts led by W. Andrew Carter said they now expect Canadian adult use shipment revenue to fall from the second quarter, due to weaker consumption trends and provincial inventory reduction/rationalization impacting shipments. "Amid renewed excitement for the cannabis sector yielding disproportionate gains for U.S. listed Canadian producers during 1Q21 (+98%, S&P 500 +6%), we believe valuations overall are incognizant of the market's structural challenges and near-term headwinds likely to pressure 1Q21 results," the analysts wrote in a note to clients. "Our focus remains on the pending merger with Tilray with our hold rating balancing our enthusiasm for the combined vehicle's robust growth prospects against more challenging near-term results with execution/integration critical to the platform's long-term success." Stifel rates Aphria and Tilray at hold. It raised its stock target price for Aphria to C$22.00 ($17.50) from C$15.50, or just below its closing price Monday of C$22.79. Stifel is now expecting Aphria to post revenue of C$163 million, from from a prior forecast of C$175 million. Aphria shares have gained 159% in the year to date, swept up in a broad-based rally driven by hopes for a relaxing of U.S. cannabis rules. Tilray is up 167% in the period. The Cannabis ETF has gained 58% and the S&P 500 has gained 8.6%.
8:19 a.m. April 5, 2021 - By Tomi Kilgore
Lamb Weston stock rallies after BofA analyst said it's time to buy, ahead of earnings reportShares of Lamb Weston Holdings Inc. hiked up 2.4% in midday trading Monday, after BofA Securities analyst Bryan Spillane recommended investors buy ahead of earnings, as the frozen potato products seller is set to approach pre-COVID levels amid pent-up consumer demand for eating out. Spillane raised his rating to buy from neutral, while lifting his stock price target to $100 from $84. His target now tops the list of highest targets of the 8 analysts surveyed by FactSet. "Overall restaurant demand is improving and we are seeing positive signals across quick serve restaurants (QSR) and foodservice operators that could drive margin-accretive revenue growth for [Lamb Weston] heading into FY22," Spillane wrote in a note to clients. He said food distributors are adding staff in anticipation of a strong rebound in foodservice sales, which are set to accelerate at demand improves. The company is expected to report fiscal third-quarter results before Wednesday's opening bell. In fiscal second quarter ended Nov. 29, foodservice sales fell 21% from a year ago while total sales fell 12%. The stock has edged up 1.5% year to date, while the S&P 500 has gained 8.6%.
3:25 a.m. April 5, 2021 - By Tomi Kilgore
JetBlue stock jumps after Raymond James upgrades to outperformShares of JetBlue Airways Corp. jumped 3.4% in premarket trading Monday, after Raymond James analyst Savanthi Syth upgraded the air carrier, citing earnings momentum and improving trends in its core markets, including the recovery in near-international. Syth raised her rating to outperform from market perform, and set a stock price target of $24, which was 17.8% above Thursday's closing price of $20.37. Syth noted that daily bookings accelerated from about $6 million in early March to $10 million to $12 million towards the end of the month, while the company needed to reach about $13 million to $15 million to reach operating cash flow breakeven. "Pent-up demand to beach destinations continues, with near-international (i.e., Mexico/Caribbean) recovering following the sharp but short-lived drop-off when the U.S. implemented testing for international arrivals on Jan 26," Syth wrote in a note to clients. JetBlue's stock has rallied 40.1% year to date through Thursday, while the U.S. Global Jets ETF has climbed 20.9% and the S&P 500 has gained 7.0%.
12:01 a.m. March 30, 2021 - By Steve Goldstein
Credit Suisse shares crawl higher after Monday drop; one analyst cuts EPS view by 47%Credit Suisse shares edged higher Tuesday, after slumping 14% on Monday when it warned of a significant loss from a margin call of a U.S. client believed to be Archegos Capital Management. Berenberg analyst Eoin Murray cut his 2021 earnings per share estimate by 47%, and 2022 EPS view by 6%, incorporating a 3 billion franc loss on the U.S. fund and a 500 million franc hit from Greensill. Murray said Credit Suisse will have to suspend its stock buyback for the rest of 2021 and into 2022, and said "second order" effects may impact the bank. "It is likely to lead to a reassessment of how it takes and manages risk in our view. Whenever a bank does this, it inevitably leads to lower growth and lower revenues compared to market expectations," he said.
6:20 a.m. March 25, 2021 - By Tomi Kilgore
GameStop, AMC stocks bounce after sharp losses, as they look to halt losing streaksShares of GameStop Corp. jumped 12.0% and of AMC Entertainment Holdings Inc. rallied 6.9% in morning trading Thursday, following sharp losses in the previous session, as they looked to snap losing streaks. GameStop's stock had plunged 33.8% on Wednesday, , on the back of and an analyst downgrade, to cap a five-day, 42.7% selloff. Meanwhile, AMC shares had tumbled 15.4% on Wednesday, and 35.6% amid a four-day losing streak, as losses spread among other . GameStop shares have soared 615.4% year to date and AMC's stock has run up 354.7%, while the S&P 500 has edged up 3.2%.
10:02 a.m. March 24, 2021 - By Tomi Kilgore
CME stock rallies after BofA says buy, citing improving revenue backdrop and attractive yieldShares of CME Group Inc. rallied 2.3% in afternoon trading Wednesday, after BofA Securities analyst Michael Carrier said it's time to buy the derivatives marketplace, given his upbeat outlook for revenue and an attractive yield. Carrier raised his rating to buy from neutral, while lifting his stock price target to $220 from $200. "We see an improving revenue backdrop as we get past a 1H20 tough volume [comparisons], the economy rebounds and interest rate expectations are on the rise, and as rates head higher, volatility and volumes across asset classes will likely be elevated as well," Carrier wrote in a note to clients. He said if the interest rate and inflation backdrop continue to rise, then he could see revenue growth and earnings-per-share growth "comfortably" in the double-digit percentage range, and a dividend yield running into the 4% range from the current 3.5% expectation. The stock has rallied 14.6% over the past three months, while the SPDR Financial Select Sector ETF has run up 16.0% and the S&P 500 has advanced 6.0%.
6:51 a.m. March 24, 2021 - By Tomi Kilgore
Bank of New York's stock surges to lead financial sector after BofA swings to bullish from bearishShares of Bank of New York Mellon Corp. jumped 3.6% in morning trading Wednesday, enough to pace its peer group's gainers, after BofA Securities analyst Michael Carrier swung to bullish from bearish on the financial services company, citing an improving earnings outlook and attractive valuation. "Despite the near-term low short-rate headwinds, we expect the combination of rising rates, strategic initiatives and active expense/capital management to drive stronger revenue and earnings growth over the next few years," Carrier wrote in a note to clients. He raised his rating to buy from underperform, and boosted his stock price target to $50 from $43. He said Bank of New York (BK) has a bit more of a defense business mix than some peers, "so if rising rates create some market indigestion in the near term, we expect BK to hold up relatively well." The stock, which was the top gainer among SPDR Financial Select Sector ETF components, has rallied 12.0% over the past three months, while the financial ETF has advanced 16.6% and the S&P 500 has gained 6.2%. Over the same time, the yield on the 10-year Treasury note has increased by about 72 basis points to 1.645%.
3:45 a.m. March 17, 2021 - By Tomi Kilgore
Plug Power's stock plummets as financial restatement, accounting errors prompts analyst downgradeShares of Plug Power Inc. plummeted 17.7% in premarket trading, after because of accounting errors prompted a downgrade at Truist. Analyst Tristan Richardson cut his rating to hold from buy, while slashing his price target by 35% to $42, from $65. "We have been generally constructive the company's fundamental outlook long-term; however, following these disclosures we expect limited opportunity for outperformance in the near-term," Richardson wrote in a note to clients. "While the company reiterated long-term targets and the accounting issues appear transitory in nature, we see limited upside until resolution, particularly amidst a broader re-rate in alternative energy-oriented equities." The stock has rallied 39.6% over the past three months through Tuesday and soared 1,201.2% over the past 12 months, while the S&P 500 has gained 6.5% the past three months and advanced 56.7% the past year.
2:27 a.m. March 15, 2021 - By Steve Goldstein
Stellantis climbs as Deutsche Bank initiates coverage at buyShares of automaker Stellantis rose 3% to €15.02 in Milan as Deutsche Bank started coverage at buy with a €20 price target. Analyst Tim Rokossa says the merger of PSA and FCA will make it the fourth-largest automaker by sales, and that CEO Carlos Tavares is in an ideal position to combine the two companies' strengths. "Stellantis is a clear buy, in our view, due to the reasons for which investors traditionally chase auto stocks: earnings and cash flow momentum. Its lack of BEV product focus will limit the multiple that the market is willing to pay for, in our view," he added.
10:46 a.m. March 11, 2021 - By Tomi Kilgore
Avocado seller Mission Produce stock falls after BofA downgrades on valuation concerns, but lifts price targetShares of Avocado seller Mission Produce Inc. dropped 3.8% in afternoon trading, after J.P. Morgan analyst Thomas Palmer backed away from his bullish view, citing concerns over valuation. The stock has pared earlier losses of as much as 6.9% in intraday trading. Palmer downgraded the stock to neutral, after initiating coverage of the company on Oct. 26 at overweight, but raised his price target to $22 from $19. The stock, which went public on Oct. 1, has gained 56.8% since Oct. 26 while the S&P 500 has gained 16.2%, even as Palmer noted that his annual estimate for earnings before interest, taxes, depreciation and amortization (Ebitda) was little changed. "We remain constructive on the longer-term growth prospects of the avocado industry and even more so Mission's position within it," Palmer wrote in a note to clients. "But we no longer see enough upside in the shares to warrant a constructive rating." Earlier this week, Mission Produce announced that .
3:23 a.m. March 3, 2021 - By Tomi Kilgore
Roku stock rallies after KeyBanc turns bullish, sets $518 price targetShares of Roku Inc. rallied 2.8% in premarket trading Wednesday, after KeyBanc Capital analyst Justin Patterson said its time to buy, saying the streaming platform for TV is redefining video monetization. Patterson raised his rating to overweight from sector weight, and established a stock price target at $518, which is 32.9% above Tuesday's closing price of $389.67. The upgrade comes on of Nielsen Holdings PLC's Advanced Video Advertising business. "Previously, Roku was capturing over 3.5 hours/day of digital viewership (although not all of it was monetizable)," Patterson wrote in a note to clients. "With the acquisition of Nielsen's advertising assets, Roku can now monetize the other 2.5-3 hours/day on linear TV." He said that benefits both average revenue per user (ARPU) and the company's positioning with programmers. Roku's stock has rallied 34.8% over the past three months, and soared 258.8% over the past 12 months. The S&P 500 has gained 28.9% over the past year.
11:24 a.m. March 2, 2021 - By Tomi Kilgore
Rocket Companies stock skyrockets, S3 says rally and short selling is reminiscent of another 'meme' stockShares of Rocket Companies Inc. blasted 74.4% higher on very heavy volume in afternoon trading Tuesday, enough to pace all gainers on major U.S. exchanges, and put them on track for a record close. Trading volume was 306.4 million shares, compared with the full-day average of about 13.0 million shares over the past 30 days. The real estate services company, with brands including Rocket Mortgage and Rocket Homes, did not immediately respond to a request for comment. The stock is headed for the biggest one-day gain since it went public on Aug. 6, 2020, while volume nearly triple the previous record 111.6 million shares on Aug. 6. The stock has now skyrocketed 113.6% over the past three days, since the company reported better-than-expected fourth-quarter earnings and announced . S3 Analytics said there has been a "large amount of short selling" into the stock's (RKT) recent rally, with short interest interest increasing to 47.9 million shares, or 45.8% of the public float. "RKT's stock price and short selling activity is reminiscent of another recent highflying -- GameStop Inc. ," wrote Ihor Dusaniwsky, managing director of predictive analytics at S3 in a note to clients. The stock has now rallied 110.8% over the past three months, while the S&P 500 has tacked on 5.9%.
7:12 a.m. Feb. 26, 2021 - By Tomi Kilgore
Select Medical stock soars after upbeat earnings and outlook prompts a double upgrade at BofAShares of Select Medical Holdings Corp. soared 19.5% toward a record in morning trading Friday, after the medical rehabilitation services company reported a fourth-quarter profit that rose well above expectations and provided an upbeat outlook, prompting BofA Securities analyst Kevin Fischbeck to swing to bullish from bearish. The company reported late Thursday earnings per share rose to 57 cents from 24 cents, above the FactSet consensus of 36 cents, the seventh-straight quarter that EPS beat forecasts. Revenue grew 6.2% to $1.46 billion, beating expectations of $1.41 billion. The company said it expects 2021 EPS of $2.26 to $2.48, compared with the FactSet consensus at the end of January of $1.64. BofA's Fischbeck double upgraded the stock (SEM) to buy from underperform, while raising his price target to $36 from $30. "SEM has been a net beneficiary from COVID, and there is now reason to believe that a decent amount of the critical illness recovery hospitals (CIRH) share shift that occurred will be sustained post-COVID, while the outpatient businesses rebound," Fischbeck wrote in a note to clients. The stock, on track for the second-biggest one-day gain since going public in September 2009, has run up 28.8% over the past three months, while the SPDR Health Care Select Sector ETF has tacked on 4.5% and the S&P 500 has gained 5.7%.
9:54 a.m. Feb. 24, 2021 - By Tomi Kilgore
Occidental Petroleum's stock soars to lead S&P 500 gainers, as crude oil prices rally toward a 13-month highShares of Occidental Petroleum Corp. shot up 9.1% in afternoon trading Wednesday, fueled by and continued praise from Wall Street analysts regarding the oil and gas company's plans to reduce debt. The stock, which was the biggest gainer in the S&P 500 , is on track to close at its highest price since March 5. The company had reported after Monday's closing bell a wider-than-expected loss and a revenue miss for the third-straight quarter, but said it remained focused on strengthening its balance sheet by using asset sales to reduce debt and to extend current debt maturities. Analyst Neal Dingmann at Truist reiterated his hold rating but raised his stock price target to $28 from $24, saying the company continues to "best manage its material debt," which positions it for an eventual return to dividend growth. Meanwhile, continuous crude oil futures rallied 2.4% toward the highest settlement since Jan. 6, 2020. Over the past three months, Occidental's stock has soared 69.4%, while crude futures have run up 40.6% and the S&P 500 has gained 8.0%.
4:13 a.m. Feb. 24, 2021 - By Ciara Linnane
Aurora Cannabis reiterated as underperform by Jefferies after earnings 'reinforce concerns on its underlying business'Jefferies analyst Owen Bennett reiterated his underperform rating on Aurora Cannabis Inc. stock on Wednesday, and said "only reinforced our concerns on its underlying business." Canadian sales pressure "were more pronounced than we had assumed, with little improvement on the margin profile," Bennett wrote in a note to clients. "Second, given the near-term debt overhang and its high cash burn rate, we raise questions marks on whether Aurora's balance sheet is strong enough to support a potential US push." The analyst raised his stock price target to C$9.44 ($7.51) from C$4.59, to reflect U.S. developments. The cannabis sector has rallied in recent weeks amid high hopes for reforms of U.S.' strict cannabis laws, that continue to classify the plant as a Schedule I drug, alongside heroin. The new administration is deemed more cannabis-friendly than the last one, and already Senate Majority Leader Chuck Schumer "While Aurora is not as expensive as certain other Canadian peers, for the others you can make a much better case for US optionality," said Bennett. "For example, Canopy takes ownership in an MSO and Cronos is sitting on C$1bn in cash with little debt, so can buy US assets, or at least invest aggressively. The same can't be said for Aurora." The analyst lowered his full-year gross margin forecast and raised his sales, general & administration cost forecasts. Aurora's U.S.-listed shares were up 4.3% premarket, but have fallen 43% in the last 12 months, while the Cannabis ETF has gained 87% and the S&P 500 has gained 16%.
10:58 a.m. Feb. 23, 2021 - By Tomi Kilgore
Marathon Oil stock surges to pace S&P 500 gainers after upbeat earnings, outlookShares of Marathon Oil Corp. shot up 8.7% toward a one-year high in afternoon trading, enough to pace the S&P 500's gainers, after the natural gas company reported and provided upbeat outlook for capital expenditures and free cash flow (FCF). Trust analyst Neal Dingmann reiterated the buy rating he's had on the stock since mid-January, while boosting his price target by 25%, to $15 from $12. His new target ties him Tudor Pickering Holt's Matthew Portillo for the highest of the 29 analysts surveyed by FactSet. Dingmann highlighted the company's plan of holding 2021 spending at about $1 billion, regardless of how much oil prices rise, so it can focus on debt repayment. "The capital discipline will not only provide meaningful FCF, but the program extends the life of the war chest of core Bakken and Eagle Ford locations to 10+ years, though an accretive acquisition is always possible," Dingmann wrote in a research note. "While we forecast 1Q21 production to be sequentially lower, partially driven by the recent weather in Texas, we still believe the company could reward shareholders soon in some fashion." The stock has soared 79.7% over the past three months, while the SPDR Energy Select Sector ETF has rallied 26.4% and the S&P 500 has gained 8.2%.
9:11 a.m. Feb. 23, 2021 - By Tomi Kilgore
Kroger stock falls after BofA analyst turns bearish, about a week ahead of earnings reportShares of Kroger Co. slumped 1.2% in afternoon trading Tuesday, after BofA Securities analyst Robert Ohmes turned bearish ahead of the grocers earnings report due out next week. Ohmes downgraded Kroger to underperform from neutral, and slashed its stock price target to $28, which is 15.6% below current levels, from $40. He expects Kroger to report fiscal fourth-quarter same-store sales that beat expectations, given strong sales through the end of January, but expects identical sales to "inflect negatively" starting in early March given the peak COVID-19-related stock piling that occurred a year ago. The FactSet consensus for same-store sales, which are scheduled to be reported on March 4, is for 10.2% growth. Ohmes also sees potential for more aggressive promotions this year to pressure margins, as well as margin risks related to fuel sales given strong fuel profitability a year ago. Ohmes is also concerned that stimulus payments and increased vaccinations "could trigger a substantial boost to services spending," including restaurants, that could hurt sales at food retailers this year. Kroger's stock has edged up 0.5% over the past three months, while the SPDR Consumer Staples Select Sector ETF has slipped 2.0% and the S&P 500 has gained 7.4%.
6:19 a.m. Feb. 22, 2021 - By Emily Bary
Nvidia target boosted to $700 at Susquehanna ahead of earningsSusquehanna analyst Christopher Rolland upped his price target on shares of Nvidia Corp. to $700 from $625 Monday, matching the highest price target among analysts surveyed by FactSet. His note comes ahead of Nvidia's Wednesday afternoon earnings report. "From a high level, we expect another beat-and-raise quarter as continued stay-at-home dynamics, Ampere gaming ramp, and a resurgence in crypto-mining drives GPU demand to all-time highs," Rolland wrote. He pointed to optimism on the part of Nvidia's management team when he spoke with them in January. "[T]hey were excited about a great holiday season and were insistent that any supply shortage is a product of the stronger than expected demand environment," he wrote. Shares are up 0.9% in Monday morning trading. They've gained 15% over the past three months as the S&P 500 has climbed 9%.
4:32 a.m. Feb. 19, 2021 - By Tomi Kilgore
DraftKings stock rallies after Oppenheimer boosts price target ahead of earningsShares of DraftKings Inc. rallied 2.9% in premarket trading Friday, after Oppenheimer analyst Jed Kelly boosted his price target by 23%, citing optimism ahead of the sports betting company's fourth-quarter results. Kelly reiterated his outperform rating, while lifting his price target to $80, which implies a 37.3% gain off of Thursday's closing price of $58.28, from $65. DraftKings is expected to report results on Feb. 26, with analysts expecting, on average, a quarterly per-share loss of 43 cents and revenue of $232.7 million. Kelly said he expects the company to raise its 2021 revenue guidance it reports results, as an analysis of state data implies "solid upside" to revenue expectations. He said he believes investors are underappreciating iGaming momentum, saying if current marketshare trends hold, he believes DraftKings can potentially generate more than $1 billion of 2021 revenue in the states where it is currently live. The current FactSet consensus for 2021 revenue is $867.4 million. The stock has more than tripled (up 224.3%) over the past 12 months, while the S&P 500 has gained 15.6%.
3:58 a.m. Feb. 19, 2021 - By Tomi Kilgore
Kraft Heinz stock pulls back from 2-year high after J.P. Morgan backs away from bullish viewShares of Kraft Heinz Co. slipped 1.2% in premarket trading Friday, to pull back from a 2-year closing high in the previous session, after J.P. Morgan analyst Ken Goldman downgraded the food and condiments company, citing valuation concerns. The stock has surged 10.2% over the past two days and 15.0% since it reported before the Feb. 11 open, to close Thursday at $38.96, the highest closing price since Feb. 21, 2019. Goldman lowered his rating to neutral, after being at overweight since March 25, 2020, while keeping his price target at $41, which is just 5.2% above Thursday's close. The stock has soared 69.5% since Goldman's upgrade through Thursday, while the SPDR Consumer Staples Select Sector ETF has rallied 28.7% and the S&P 500 has run up 59.9%. "We had not anticipated the [Kraft Heinz] shares working this well this fast, but now that they have, we want to respect valuation and the potential limits to upside, as we see them," Goldman wrote in a note to clients.
2:23 a.m. Feb. 16, 2021 - By Tomi Kilgore
Shopify's stock rallies into record territory after Susquehanna analyst boosts price target by 37%Shares of Shopify Inc. climbed 0.9% in premarket trading Tuesday, putting them on track to open in record territory, after Susquehanna analyst John Coffey raised his price target by 37% ahead of the ecommerce platform company's fourth-quarter report, citing optimism over the payments business. Coffey boosted his price target to $1,300 from $950, while keeping his rating at neutral. His new target is still 11% below Friday's closing price of $1,455.49. "Our thesis on [Shopify] is it is quickly becoming a payments company that does software -- versus its earlier existence as a software company that did payments," Coffey wrote in a note to clients. "We believe , which allows Shop Pay ([Shopify's] consumer-facing, PayPal-like wallet) to be used on the checkout pages of Facebook and Instagram, furthers this narrative." Shopify is scheduled to report earnings before Wednesday's open. The stock, which is headed for an open above the Feb. 11 record close of $1,463.31, has fun up 58.3% over the past three months through Friday, while the S&P 500 has advanced 8.5%.
3:45 a.m. Feb. 12, 2021 - By Ciara Linnane
Aurora Cannabis stock slides 4% premarket as MKM downgrades stock to sell MKM analyst Bill Kirk downgraded the stock of Aurora Cannabis Inc. to sell on Friday, after the company's fiscal second-quarter earnings published late Thursday fell short of expectations. The numbers were "concerning on two fronts," Kirk wrote in a note to clients. The company's consumer cannabis revenue of C$28.6 million ($22.5 million) was down 17% from the first quarter and at its lowest level since the second quarter of 2019, he wrote. The company's guidance for positive adjusted EBITDA also failed to materialize and showed deterioration from the first quarter. "We don't see a cost-cutting or growth path that gets to near-term positive EBITDA," Kirk wrote. "For perspective, Aurora collected more in COVID-related subsidies in 2Q than it generated in gross profit dollars." Aurora may be further commoditizing its flower offering by outsourcing sales functions and may struggle to distinguish itself from rivals and the excess supply in the Canadian market, said Kirk. With pricing pressures still in play, the company's decision to push grows into more premium price points "seems like a recipe for consumer/province frustration," said the analyst. In an industry that is now showing years of sequential growth, Aurora sold less recreational weed in the quarter than in any full quarter since Canada fully legalized cannabis in October of 2018, he wrote. "To the company's credit, Aurora has some strong IP from its MedReleaf acquisition and strong brands in San Rafael and Whistler (both acquired)," said Kirk. "They will try to premiumize around those offerings, but we believe the shift back toward higher price point products will be difficult. Downgrading to Sell, while maintaining our C$9 PT." Aurora shares were down 4.2% premarket, and have fallen 17% in the last 12 months, while the Cannabis ETF has gained 99.9% and the S&P 500 has gained 16%.
6:59 a.m. Feb. 11, 2021 - By Claudia Assis
General Motors stock's price target upped at RBC, Deutsche BankAnalysts at Deutsche Bank and RBC Capital on Thursday raised their price targets on General Motors Co. stock after the auto maker reported fourth-quarter earnings well above Wall Street expectations and reiterated its goals toward electric vehicles and self-driving cars. At RBC, Joseph Spak raised his price target by 22% to $67, and reiterated the equivalent of a buy rating on the stock. Continued "strong execution through challenging times" allows GM to accelerate investment towards EVs and AVs, and allows investors "to worry less about some near-term challenges like the chip shortage," he said. At Deutsche Bank, analyst Emmanuel Rosner tweaked his price target on GM by $1 to $65, saying that despite GM's "somewhat lackluster" guidance, "underlying execution remains very strong, leaving it well on track for high profitability when industry conditions normalize," he said. "Most importantly, we continue to be very encouraged with GM's aggressive electrification and autonomous driving strategy." Shares of GM have gained 52% in the past 12 months, compared with gains around 17% for the S&P 500 index.
6:23 a.m. Feb. 5, 2021 - By Emily Bary
Peloton stock gets a downgrade from Raymond James after earningsRaymond James analyst Aaron Kessler downgraded shares of Peloton Interactive Inc. to market perform from outperform Friday, following an earnings report in which the company but also sustained delivery delays. Shares are down 7.5% in Friday morning trading. Kessler worries that demand for Peloton equipment could "soften somewhat" once social-distancing restrictions ease upon further progress in vaccine distribution. While he still has a long-term positive view on the company's fundamentals, he argued that the stock looks fairly valued trading at about 26 times his expectations for calendar 2021 gross profits and 21 times his expectations for calendar 2022 gross profits, as of the publication of his note before trading began Friday. Peloton shares have gained 23% over the past three months as the S&P 500 has risen 11%.
5:36 a.m. Feb. 4, 2021 - By Emily Bary
Qualcomm stock gets a downgrade at Citi after earningsCiti Research analyst Christopher Danely downgraded shares of Qualcomm Inc. to neutral from buy Thursday, following what he called a "mixed" . While Qualcomm exceeded Danely's expectations with its fiscal first-quarter revenue and earnings per share, gross margins decelerated and came in below his estimates. " We upgraded QCOM last year based on upside driven by share gains and the 5G upgrade cycle," Danely wrote. "We believe the upside is over and expect more instances of downside such as the lower margins." He argued that Qualcomm's margins came under pressure during the 4G wave as the upgrade cycle "matured," a trend he expects to repeat with the 5G upgrade cycle. Danely lowered his price target on Qualcomm's stock to $165 from $194. The shares are off 8% in morning trading Thursday. They've risen 17% over the past three months as the S&P 500 has risen 12%.
4:05 a.m. Feb. 3, 2021 - By Tomi Kilgore
Amazon gets first $5,000+ stock price target, and Alphabet gets first $3,000 targetAnalyst Shyam Patil at Susquehanna is now Wall Street's most bullish on Amazon.com Inc.'s stock, after he raised his price target to $5,200 from $4,000, while reiterating his positive rating, in the wake of the e-commerce giant's . Patil is also the most bullish on Google-parent Alphabet Inc. , after he boosted his target by 50% to $3,000 from $2,000. For Amazon, Patil's new target is 30.6% above the average target of the 48 analysts surveyed by FactSet of $3,982.03, and implies a 53.8% gain off Tuesday's closing price of $3,380.00. "Ultimately, we see [Amazon] as a long-term secular grower whose leadership in its three key markets -- e-commerce, cloud and advertising -- should emerge even stronger coming out of the pandemic," Patil wrote in a note to clients. For Alphabet, Patil's new target is 33.5% above the average target of the 43 analysts surveyed by FactSet of $2,247.44. He said a big acceleration in search and YouTube for Alphabet drove a , and expects a recovery in travel "should be a tailwind," as it represented 10% of search pre-COVID-19. Shares of Amazon rose 1.6% in premarket trading and Alphabet's stock climbed 7.4%, while futures for the S&P 500 edged up 0.3%.
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