Markets rallied to start the week, with the the S&P ending Monday's session up .40%, reversing morning losses. Asia markets closed mostly lower overnight while Europe indexes are in the green this morning. U.S. futures are pointing to a lower open as I write this, the Dollar, Oil, and Yields are higher while Gold is lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-80/
Markets closed higher on Monday, reversing morning losses. The S&P is now up for 4 straight sessions and is looking for its 5th week in a row of gains. This morning earnings from WMT and HD came in well above expectations. WMT earnings came in above expectations on the revenue side and they upped their guidance. A sigh if relief. HD earnings also came in above expectations. Tomorrow we get TGT earnings... if they report anything inline, could bode well for markets and maybe that $430 wall on the SPY falls. We also have the Fed minutes tomorrow at 2pm. The SPY closed right near the 200dma. A bullish sign if markets can break and hold that area and maybe $435+ is in the cards in the coming week or two:
I added ICPT calls yesterday. The company has(or will have soon after its sales agreement deal) over $750 mil in cash. The company trades a little more than 1x's revenues and has some possible positive catalysts on the horizon. Not to mention it sports an insane 37% short interest:
Have to think this soars into the mid-high $20s in the coming weeks. May look for some leap calls as well into 2023. Some charts:
Further out:
And even further out:
IIPR was one of my top 5 stocks a few years ago back when it was in the 70s. It rallied all the way up near $300 before pulling back. It is an interesting play on the cannabis space. The chart looks great and think maybe a move to $110+ this week as other names rally like TLRY... ect. May look at some calls today and thanks uknownblood for the chart yesterday:
I was looking to add some calls on ULTA into their earnings next week but the stock spiked out of the gate. It received some more positive analyst commentary this morning. Will be watching again for some calls to play for a move to $420+ before they report next week:
The JYNT is back on watch. The stock has been absolutely decimated as the market sold high multiple names. JYNT is still a great growth story and should be back into the $30-40s in the coming weeks if the market holds its ground here:
Still eyeing some U on any strength today and may nibble some YOU calls if it shows any signs of reversing yesterdays profit taking.
Here are the analyst changes of note for today:
| Ulta Beauty to report "solid" Q2 results, says UBS |
| UBS analyst Michael Lasser keeps his Buy rating and $500 price target on Ulta Beauty ahead of the company's Q2 earnings on August 25. The company is set for "solid" earnings, and while concerns have risen about a moderation in its sales growth pace, they may be embedded into expectations, the analyst tells investors in a research note. Lasser adds that his checks indicate that consumers have maintained the routines developed during their time at home, and engagement in beauty and self-care products "remained strong" |
Snowflake price target raised to $210 from $158 at Barclays |
| Barclays analyst Raimo Lenschow raised the firm's price target on Snowflake to $210 from $158 and keeps an Overweight rating on the shares. Investors are likely searching for confidence that Snowflake's consumption model will remain strong in a more challenging spend environment and he expects "another quarter of elevated volatility post earnings," Lenschow said in an earnings preview note. Though web traffic data shows a slight moderation for unique traffic on Snowflake, he expects spending to be resilient, supported by the firm's CIO survey that had Snowflake in the top spot for expected change in spending over the next twelve months, and he sees "room for a modest raise to the backhalf of the year," Lenschow tells investors |
| Ulta Beauty to report "solid" Q2 results, says UBS |
| UBS analyst Michael Lasser keeps his Buy rating and $500 price target on Ulta Beauty ahead of the company's Q2 earnings on August 25. The company is set for "solid" earnings, and while concerns have risen about a moderation in its sales growth pace, they may be embedded into expectations, the analyst tells investors in a research note. Lasser adds that his checks indicate that consumers have maintained the routines developed during their time at home, and engagement in beauty and self-care products "remained strong |
| Workday price target lowered to $282 from $310 at Morgan Stanley |
| Morgan Stanley analyst Keith Weiss lowered the firm's price target on Workday to $282 from $310 and keeps an Overweight rating on the shares. In SaaS, Weiss sees a more challenging setup for Workday, who is a likely candidate for longer-sales cycles and/or slipped deals and still needs to de-risk 2H, the analyst tells investors in a research note |
| Thoughtworks price target lowered to $20 from $21 at Cowen |
| Cowen analyst Bryan Bergin lowered the firm's price target on Thoughtworks to $20 from $21 and keeps an Outperform rating on the shares. The analyst said the 2Q upside was overshadowed by discrete factors that are expected to weigh on 3Q performance but said the long-term thesis remains intact |
| Weber price target lowered to $6 from $7 at BMO Capital |
| BMO Capital analyst Simeon Siegel lowered the firm's price target on Weber to $6 from $7 and keeps a Market Perform rating on the shares after its Q3 earnings loss. The pull-forward demand during the pandemic and the overall macro pressures impacted demand this past quarter, leading the company to "suggest a reset" as it focuses on maintaining brand equity, the analyst tells investors in a research note. Siegel is also cutting his FY22 EPS view on Weber by 14c to (51c) and his FY23 view by 18c to breakeven |
And here is what I am watching today: IIPR, JYNT, YOU, U, ULTA, ICPT, SAGE, OLED, EDIT, and SPOT.
Let's have a great day!
-JB