These names reporting earnings this week could see big moves

Published Mon, May 6 20243:05 PM EDTUpdated Mon, May 6 20243:17 PM EDT

The earnings season is winding down, but there are some names slated to report that could see big moves — in either direction. Fifty-five S & P 500 stocks, including Disney and Uber , will give their reports this week. Already, more than 80% of companies in the S & P 500 have already posted quarterly results this earnings season as of Monday morning. Of those, nearly 80% have exceeded expectations, according to FactSet. Against that backdrop, CNBC Pro screened for names reporting this week — with market caps of $1 billion or more — that could experience sharp upside or downside moves, based on trading activity in the options market. Here are the names that made the list: Upstart Holdings is the reporter this week that could be in for the biggest move at nearly 19%. The personal loan marketplace's stock has run up more than 6% in Monday trading ahead of its Tuesday report, but is still down more than 37% in 2024. Despite Monday's gains, the majority of analysts polled by LSEG have a sell rating and expect the stock to tumble another 23%. One of those bearish analysts is Bank of America's Mihir Bhatia, who reinstated coverage with an underperform rating last month. Bhatia said the validity of the company's artificial intelligence moat, the pace at which it is recovering on originations and its funding model are all cause of debate on the stock. But as of now, he said it is too expensive with those questions unanswered and while trading at a premium valuation compared with peers. "We think Upstart has many hurdles to overcome to regain investor and lender confidence," Bhatia wrote to clients. Ride-share stock Lyft also made the list. Lyft is slated to move more than 15% in either direction, according to the options market. It has been a good year so far for Lyft, with the stock climbing more than 16% in 2024. However, the average analyst surveyed by LSEG has a hold rating with a price target implying shares will retreat 4.5% over the next year. LYFT YTD mountain Lyft in 2024 Jefferies analyst John Colantuoni said late last month that he hopes to get more visibility into the company's relative performance in the ride-share business, as maintaining market share there is "essential to the long-term profit story." Colantuoni, who has a hold rating, said the stock's rally could fade after its Tuesday report if the California-based company offers worrisome commentary about future market share. "Our sense is investors expect LYFT to deliver upside in 1Q/2Q on better-than-expected Bookings, although recent share losses (Jan/Feb) could foreshadow a substantial slowdown in the back half," he told clients. Later in the week, traders will keep an eye out for Warner Bros. Discovery , which could see an 8.5% change. The media stock, which reports Thursday, has tumbled nearly 30% in 2024. After that sell-off, Wall Street sees a comeback ahead. In addition to having a buy rating, the average analyst holds a price target implying shares can surge more than 65% in the next 12 months, per LSEG. Bank of America's Jessica Reif Ehrlich said she was standing behind the stock heading into earnings. The analyst, who holds a buy rating, specifically pointed to positive trends in the direct-to-consumer business as a reason for encouragement. Ehrlich said a potential relaunch within the direct-to-consumer business and the pipeline of content can "buoy growth in 2024." Looking beyond this year, she said the studio segment's momentum can help drive growth. "We continue to believe that WBD has a compelling assortment of assets and view the current valuation as undemanding," she wrote to clients last month.