Small Cap Stocks Traders Are Watching: May 3, 2017

The markets are relatively flat ahead of the FOMC Meeting Announcement at 2:00 PM ET today. ADP Employment data was released at 8:15 AM, and came in better than expected for the month of April. Moving on to stocks. Apple reported earnings last night, and shares are down over 1% during the pre-market, which could weigh on the tech sector and the overall market, but that’s all said and done. Traders are focused on what’s going on today and looking for potential opportunities today, as the markets could be relatively slow up until the FOMC Meeting. Now, there are some stocks moving during the pre-market, and these are some small cap stocks traders are watching on today.

Potbelly Corporation (NASDAQ: PBPB) reported its first quarter 2017 financial results last night, and shares were down just over 14% off of the release. The company missed its first quarter estimates and its 2017 sales forecast was below the Wall Street consensus estimate. Potbelly’s sales came in at $101.7M, which was below the Capital IQ consensus estimate of $103.36M. Moreover, its company-operated comparable store sales fell by 3.1% year over year, which was below Potbelly’s expectations.

Potbelly’s weak earnings results prompted multiple downgrades. Wells Fargo downgraded PBPB to Market Perform, from Outperform and William Blair cut the stock to Market Performance, from Outperform.

Here’s a look at PBPB on the daily chart, as of yesterday’s close:

small cap stocks traders are watching

Source: TradingView

Pieris Pharmaceuticals Inc. (NASDAQ: PIRS) shares are up over 40% during the pre-market, after it announced its collaboration with AstraZeneca plc (ADR) (NYSE: AZN) to develop and commercialize Anticalin-based inhaled treatments for respiratory disease. Pieris Pharmaceuticals is expected to receive $57.5M in upfront and near-term milestone payments. Additionally, PIRS could potentially receive development-dependent milestones and commercial for all products not exceeding $2.1B, and tiered royalties.

Here’s a look at PBPB during the pre-market:

Source: TradingView

 

FireEye Inc (NASDAQ: FEYE) shares are trading higher by over 14% ahead of the bell, after the company reported all first quarter financial metrics above its guidance ranges, which prompted William Blair to upgrade the stock to Outperform from Market Perform, FBR & Co. to reiterate its Market Perform rating and raise its price target to $15, from $11, and BMO Capital markets to reiterate its rating and raise its price target to $15.

Now, the company’s first quarter 2017 metrics all came in above its guidance ranges, and FEYE’s earnings beat the Zacks Consensus estimate. Additionally, the company’s revenue topped the Zacks Consensus Estimate. FireEye also announced second quarter 2017 revenue guidance and expects total revenue to come in between a range of $173M and $179M.

Here’s a look at FEYE during the pre-market:

Source: TradingView

 

Etsy Inc. (NASDAQ: ETSY) is trading lower by over 15% during the premarket after the company reported its first quarter 2017 financial results. CEO Chad Dickerson stepped down as CEO and Chair of the Board of Directors, and Dickerson will now serve in an advisory role through May 31, 2017. Additionally CTO John Allspaw is stepping down from his position. Etsy’s revenue missed the Capital IQ consensus estimate, and its non-GAAP EPS came in at $0.00, below the Street estimate of a 6 cent profit. Not only that, but the company cut 8% of its staff.

Take a look at how ETSY is trading during the pre-market:

Source: TradingView

 

Oclaro Inc (NASDAQ: OCLR) shares are down nearly 10% after the company announced its third quarter 2017 financial results. Now, the company third quarter revenue and earnings topped the Street’s estimates, but traders are typically more focused on guidance. That in mind, OCLR expects revenue to come in between a range of $144M and $152M for the current quarter, which is significantly below the consensus estimate of $163.5M.

Here’s a look at OCLR during the pre-market:

Source: TradingView

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