Earnings Plays This Week

A few companies to look out for

Trading floor 2

On Tuesday, Walt Disney (DIS) is likely to unveil 2Q EPS of $0.93 vs. $1.61 the prior year on revenue of $17.9B compared to $14.9B last year. The Co is an entertainment and media giant, and on April 28th, DISH Network (DISH), a satellite television services provider, asked the Co to refund the fees from its subsidiary ESPN because live sports are not being played as a result of the coronavirus pandemic, according to Bloomberg. Looking at a daily chart, the RSI is above its neutrality area at 50. The MACD is above its signal line and negative. The MACD must break above its zero level to trigger further gains. Moreover, the share stands above its 20 day MA ($100.78) but below its 50 day MA ($115.92). We are looking at the final target of $141.00 with a stop-loss set at $93.80.    

Additionally on Tuesday, Activision Blizzard (ATVI) is expected to announce 1Q EPS of $0.38 vs. $0.31 the prior year on revenue of $1.3B in line with the year before. The Co is one of the world's largest video game publishers and on April 22nd, Sony Mobile Communications and the Co announced that the Call of Duty: Mobile World Championship 2020 Tournament will begin on April 30th. The competition features over $1M in total prizes. From a technical point of view, the RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $63.50 and $60.50). We are looking at the final target of $78.60 with a stop-loss set at $59.10.

On Wednesday, PayPal (PYPL) is anticipated to release 1Q EPS of $0.75 vs. $0.78 the prior year on revenue of $4.7B compared to $4.1B last year. The Co operates an online payment firm and on April 10th, the Co revealed that they are one of the first non-bank institutions to be able to provide small business loans through the U.S. Small Business Administration (SBA) Paycheck Protection Program. From a chartist's point of view, the RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $106.84 and $105.82). We are looking at the final target of $149.30 with a stop-loss set at $104.50.

On Thursday, Bristol-Myers Squibb (BMY) is awaited to post 1Q EPS of $1.49 vs. $1.10 the prior year on revenue of $10.0B compared to $5.9B last year. The Co develops pharmaceuticals and on May 1st, the U.S. Food and Drug Administration (FDA) accepted the Co's New Drug Application for CC-486, a maintenance treatment for acute myeloid leukemia (AML). Technically speaking, the RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $59.44 and $57.73). We are looking at the final target of $70.50 with a stop-loss set at $58.10.

Looking at the S&P 500 CFD, the index broke above its resistance level at 2900 and continued upward until finding new resistance at 2973. Price pulled back after it broke out of its sideways range. As long as price can hold above 2725 support, we will most likely see a continuation of the rebound towards 3129. A break below 2725 support could pressure the index back down towards 2538 support. 



Source: GAIN Capital, TradingView

More from Earnings

Related Articles

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.