These stocks are expected to be the most volatile in terms of earnings this week
Some popular stocks could see big moves thanks to this week’s earnings reports. The third-quarter season is getting into full swing even though some companies remained closed Monday for Columbus Day. The major reporters on the list range from United Airlines to Goldman Sachs. CNBC Pro sifted through to find the stocks that could see the biggest moves in both directions after this week’s earnings release. To do this, CNBC Pro looked at the expected move based on activity in the options market. These are the stocks that could see the biggest moves post-earnings: Walgreens is expected to see the biggest moves, up or down 12.2%. The pharmacy chain’s shares were reported Tuesday to be in dire straits. The stock has fallen more than 60% in 2024, giving it its third straight year of losses and eighth negative year in the past nine years. WBA YTD Mountain Walgreens Boots Alliance, year-to-date The company was replaced by Amazon in the Dow Jones Industrial Average earlier this year. While the typical analyst polled by LSEG is a hold, they expect a recovery ahead with price targets suggesting the stock could rise more than 13%. Looking down the list, aluminum stock Alcoa reported on Wednesday and implied a 7% gain in both directions. The stock rose more than 20% in 2024, marking its first positive year in three years. Analysts surveyed by LSEG have buy ratings and price targets that suggest the stock could rise 7%. Bank of America joined the bullish camp earlier this month, upgrading the stock to buy from neutral. Analyst Lawson Winder said he recommends Alcoa as a way to gain exposure to rising aluminum prices. At the end of the week, investors’ attention will focus on Netflix’s report on Thursday. The options market is predicting shares of the megacap tech stock will rise or fall 6.8%. Netflix shares are up about 48% year to date, building on last year’s gain of about 65%. Oppenheimer’s Jason Helfstein is a Wall Street analyst who raised his price target on the streaming stock ahead of the earnings report, signaling that he sees an uptrend following a strong report. “We believe NFLX’s dominance will continue, given its clear advantage in producing highly engaged content and monetizing that content more effectively than with competitors”. Helfstein’s superior ratings give him the majority on Wall Street. The average analyst surveyed by LSEG has a buy rating, with price targets suggesting the stock will hover around stable levels over the next year.
