Walmart Stock, Parade Of Gold Leaders Headline Another Busy Earnings Calendar

2026-02-15 16:06:03

Walmart stock and several highflying gold stocks are next up on the earnings docket as strong earnings reports in the chip sector from Lattice Semiconductor (LSCC) and Advanced Energy (AEIS) failed to lift the Nasdaq composite out of its doldrums. The index is still stuck below its 50-day moving average with an elevated distribution day count.

Walmart (WMT), meanwhile, has been a standout performer in the retail sector, which currently ranks in the bottom half of IBD’s 33 sector rankings. But Walmart’s industry group — Major Discount Chains — ranks well within the top half of IBD’s 197 industry group rankings at No. 68 as of Thursday’s close.

Walmart stock gapped up on Nov. 20 the last time the company posted earnings. The stock cleared a flat base four days later, on Nov. 26, and hasn’t looked back.

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Two other stocks in the retail sector are also on the earnings calendar. In the restaurant group, Cheesecake Factory (CAKE) is still trading near a cup-with-handle buy point of 61.75 ahead of fourth-quarter results due Wednesday after the close. The stock’s recent Accumulation/Distribution Rating of A- is helped by four above-average-volume weekly price gains on the weekly chart since the week ended Dec. 19.

Texas Roadhouse (TXRH) reports Thursday after the close. It’s in a big cup-with-handle base, although the handle shows a sizable pullback of 22%. Nonetheless, the handle buy point of 197 is in plain view.

Walmart Stock Near Highs

When Walmart reported earnings for the October-ended quarter in November, revenue growth accelerated slightly, by 6% to $179.5 billion. That was about $2 billion above the consensus estimate at the time, helped by a 4.5% increase in same-store sales. While lower-income customers showed signs of pulling back, some of the biggest gains came from higher-income customers.

At the time, Walmart said it expected full-year sales to grow 4.8% to 5.1%, above a prior outlook of 3.75% to 4.75%. It also raised its full-year earnings guidance slightly.

Advertising has turned into a legitimate growth area for Walmart. Global advertising, which includes the company’s 2024 acquisition of smart TV maker Vizio, jumped 53% in the quarter. Walmart Connect, the company’s retail media advertising platform, increased 33%.

Gold Rush

Market-leading gold and silver stocks came under heavy selling pressure along with the broad market Thursday. Eight top-rated names in the group are on the earnings docket, including Hecla Mining (HL), which hasn’t recovered much after a recent sharp drop to its 50-day moving average.

Fundamentals are strong throughout the gold and silver group, including Idaho-based Hecla with a market capitalization of around $14 billion. Its revenue jumped 67% to $409.5 million when the company reported third-quarter results in early November. Hecla had produced 4.6 million ounces of silver and a little over 40,600 ounces of gold. Hecla reports late Tuesday along with Toll Brothers (TOL), a top performer in the homebuilder group.

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Alamos Gold (AGI) and Coeur Mining (CDE) are set to report Wednesday after the close. Alamos is just off highs with full-year earnings expected to jump 79% this year and accelerate in 2026, up 90%. For the December-ended quarter, FactSet is modeling fourth-quarter profit of 51 cents per share, up 106% year over year. Revenue should be up 28% to $568 million.

Coeur Mining also shows torrid growth but exceptionally volatile price action. Shares plunged more than 20% during the week ended Jan. 30, but support eventually held at the 10-week moving average. Fourth-quarter profit is expected to soar 236% to 37 cents a share, with revenue up 77% to $688.2 million

Kinross Gold (KGC), Pan American Silver (PAAS) and Royal Gold (RGLD) also report late Wednesday. First Majestic Silver (AG) reports early Thursday and results from Newmont Mining (NEM) are due Thursday after the bell.

Outside of the gold and silver group, a couple of fertilizer stocks are on the earnings radar. CF Industries (CF), which is still near a cup-with-handle buy point of 95.21, reports late Wednesday. Group peer Nutrien (NTR), which is trading near highs after clearing a 30-week consolidation in mid-January, also reports Wednesday after the close.

Options Trading Strategy

A basic options trading strategy around earnings — using call options — allows investors to buy a stock at a predetermined price without taking a lot of risk. Investors put this to work during stock market uptrends. Traders should generally avoid this during stock market corrections.

Here’s how the option trading strategy works:

See Which Stocks Are In The Leaderboard Model Portfolio

First, investors should identify top-rated stocks with a bullish chart. Some might be setting up in sound early-stage bases. Others might have broken out already and are getting support at their 10-week moving average for the first time. A few also might be trading tightly near highs and are refusing to give up much ground. Avoid extended stocks that are too far past proper entry points.

A call option equates to a bullish bet on a stock. Put options are bearish bets. One call option contract gives the holder the right to buy 100 shares of a stock at a specified level, known as the strike price.

The Next Step

Once you’ve identified a bullish setup in the earnings calendar, check strike prices with your online trading platform or at Cboe.com. Also, make sure the option remains liquid with a relatively tight spread between the bid and ask.

Investors should look for a strike price just above the underlying stock price — that’s out of the money — and check the premium. Ideally, the premium should not exceed 4% of the underlying stock price at the time. In some cases, an in-the-money strike price is OK as long as the premium isn’t too expensive.

It’s best to choose an expiration date that fits a risk objective. But investors should be mindful that time is money in the options market. Near-term expiration dates will have cheaper premiums than those further out.

Buying time in the options market comes at a higher cost. Also, keep in mind that implied volatility tends to rise before an earnings report. That can push up the cost of options.

Walmart Stock Option Trade

When Walmart stock traded around 133, a slightly out-of-the-money weekly call option with a 134 strike price and a Feb. 20 expiration came with a premium of around $3.80 per share. That was 2.9% of the underlying stock price at the time and below the 4% risk threshold.

One contract gave the holder the right to buy 100 shares of Walmart stock at 134. The maximum loss on a 100-share contract comes in at $380. Remember that Walmart stock would need to rise to 137.80 for the trade to break even, factoring in the premium paid.

The expected earnings-related move in the options market for Walmart stock is a little over 8 points up or down. Traders can find this number by adding the call and put premiums for the in-the-money strike of 133 expiring Feb. 20.

Follow Ken Shreve on X/Twitter @IBD_KShreve for more stock market analysis and insight.

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