Three US stocks that could see big moves after results this week

The earnings season is coming to an end, but there are still reports from several companies that could bring big moves – in both directions. Fifty-five S&P 500 companies, including Disney and Uber, will report their results this week. By Monday morning, more than 80% of S&P 500 companies had reported their numbers, and nearly 80% of them beat market expectations. On that note, CNBC Pro picked stocks with a market cap of more than $1 billion that could see sharp moves up or down after the results, based on trading activity in the options market:

Upstart Holding could see the biggest move after results this week, up nearly 19%. Shares in the personal loan firm rose more than 6% yesterday ahead of results, but are still down more than 37% for the year. Despite Monday’s rise, most analysts polled by LSEG have a “sell” rating, and the stock is expected to fall another 23%.

One of those bearish analysts is Mihir Bhatia of , who last month resumed coverage with an underperform rating. According to Bhatia, the company’s lead in artificial intelligence and its funding model are debatable. The stock is too expensive with these unanswered questions, he said, especially considering the premium valuation compared to others. “We think Upstart has many hurdles to overcome to regain the confidence of investors and lenders,” Bhatia wrote to clients.

The company’s shares also made it to the list Lyft. According to the options market, Lyft could move more than 15% in either direction. This year has been good for Lyft so far, with shares up more than 16%. However, the average analyst polled by LSEG has a “hold” rating on the stock, with a price target that suggests the stock will decline 4.5% over the next year.

Jefferies analyst John Colantuoni said late last month that he hoped to gain more insight into the company’s relative performance in the ride-sharing space because maintaining market share is “essential to a long-term profit story.” Colantuoni, who also has a “hold” rating on Lyft, said if the California-based company makes worrisome comments about future market share, the stock’s rally could fizzle out after the results. “We feel investors expect LYFT to deliver better numbers in 1Q/2Q thanks to higher-than-expected orders, although recent stock losses (Jan/Feb) could indicate a substantial slowdown in Q2,” he told clients.

Marketers will be watching as well Warner Bros. Discovery, which could make an 8.5% change. Its shares fell nearly 30% in 2024. But after this sell-off, Wall Street is expecting a comeback. Analysts on average have a “buy” rating on the stock and a price target that suggests the stock could rise more than 65% in the next 12 months.

Jessica Reif Ehrlich of is one of those who believe this stock will head higher. The analyst, who has a “buy” rating on WBD, pointed to the positive trend in direct-to-consumer sales as a reason for growth. Direct-to-consumer sales and a wave of content may “drive growth in 2024.” Looking beyond this year, momentum in the studio segment may help growth. “We continue to believe that WBD has a compelling mix of assets and view current valuations as undemanding,” she wrote to clients last month.

Source: CNBC