Jobless Claims, Fed Speakers, and Earnings Take Center Stage This Week: Arista Networks a Buy, Rivian Automotive a Sell
Are you looking for actionable trade ideas to navigate the current market volatility? This week, jobless claims, Fed speakers, and more earnings are in focus. Stocks on Wall Street surged to a higher close on Friday, with hopes of a potential interest rate cut by the Federal Reserve.
One stock to consider buying this week is Arista Networks (NYSE: ANET). The networking-infrastructure company is expected to deliver a strong quarter with both top-line and bottom-line growth. Analysts and investors are increasingly bullish on Arista Networks, with a positive outlook for the cloud networking solutions provider. The company is set to report its first-quarter earnings update on Tuesday, and the options market is pricing in an implied move of about 9% in either direction for ANET stock.
On the other hand, Rivian Automotive (NASDAQ: RIVN) is a stock to consider selling this week. The struggling electric truck startup is facing various headwinds that are expected to impact its earnings and guidance negatively. Analysts have cut their profit estimates for Rivian, and the options market is pricing in an implied move of roughly 14% in either direction for RIVN stock after the earnings update. The company is expected to report a net loss in the March quarter, and there is a growing downside risk that Rivian could cut its sales guidance and production outlook for the rest of the year.
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Disclosure: The author of this article is long on the S&P 500 and the Nasdaq via ETFs. The views discussed in this article are solely the opinion of the author and should not be taken as investment advice. Follow Jesse Cohen on Twitter for more stock market analysis and insight.