The three major U.S. equity indexes closed higher again Tuesday. The Dow Jones industrials ended the day up 1.02%, the S&P 500 closed 0.56% higher and the Nasdaq saw a gain of 0.49%. Ten of 11 sectors closed higher, with materials (1.68%) and technology (0.92%) posting the biggest gains. Consumer cyclicals (−0.3%) was the day’s only loser.

This week’s economic calendar includes the monthly report on the consumer price index (CPI). Economists are expecting the Thursday morning release to show that the index increased month over month in October by 0.7%. Core CPI (which excludes food and energy) is expected to tick down from 0.6% to 0.5%. The weekly report on new claims for unemployment insurance will be released Thursday as well. New claims are expected to rise from last week’s 217,000 to 220,000.

The three major indexes traded lower in Wednesday’s premarket session.

After U.S. markets closed Tuesday, Disney reported misses on both the top and bottom lines. The company said it expects price increases, a new ad-supported Disney+ variant, reduced marketing spending and fewer new productions will put it back on the path to profitability in the current quarter. Shares traded down about 7.5% in Wednesday’s premarket.

AMC reported an adjusted loss per share of $0.20, where a loss of $0.25 was expected. Revenue also topped estimates. Common stock traded down about 4.3%, and preferred shares (APE) traded down almost 7% Wednesday morning.

Lucid reported a wider-than-expected loss and missed the consensus revenue estimate. The company also has made, but not completed, deals to sell up to $1.5 billion in new shares. Shares traded down nearly 8%.

Occidental Petroleum missed the consensus estimates for adjusted earnings per share (EPS) by a penny and reported revenue that was down 11.5% sequentially, although the total was higher than the consensus estimate. The oil and gas producer also raised guidance. The stock traded down by nearly 2%.

Affirm posted a smaller-than-expected per-share loss and narrowly beat the consensus revenue estimate. The company issued downside revenue guidance for the current quarter and for the full 2023 fiscal year. Shares were clobbered, down by nearly 11% in early trading Wednesday.

Plug Power missed the consensus estimates on both the top and bottom lines. The company also reaffirmed fiscal 2023 revenue guidance. Shares traded down about 1.2%.

Before markets opened Wednesday morning, Canopy Growth reported a wider-than-expected loss per share but beat the consensus revenue estimate. The stock traded up about 2.2%.

D.R. Horton missed estimates on both the top and bottom lines. Net sales orders and the value of homes sold declined. The cancellation rate rose from 19% to 32% year over year. The stock traded down by about 2%.

Hecla Mining met analysts’ estimate for a per-share loss of $0.02 but fell short of the consensus revenue estimate. Shares traded down by about 2.4% in the premarket session.

After markets close Wednesday, Kinross Gold, Unity Software and Wynn Resorts are expected to report quarterly results. Then, AstraZeneca, Nio and WeWork are on deck first thing Thursday morning.

Here is a preview of two companies set to report quarterly results later on Thursday. There are no notable earnings reports due out Friday morning.

Shares of Canada-based pot grower Aurora Cannabis Inc. (NASDAQ: ACB) posted their 52-week high exactly one year ago. Since then, the shares have dropped by nearly 83%. Like its peers, the Edmonton, Alberta-based marijuana grower has been struggling to survive until the U.S. Congress takes action to legalize marijuana. That would remove cannabis from its current position as a dangerous drug and could pump up sales again. Unlike its peers, the company is a serial acquirer. The jury is still out on whether that is a reasonable strategy.

Of 13 analysts covering the stock, 11 have a Hold rating and two rate the shares at Buy or Strong Buy. At a recent price of around $1.30 a share, the implied gain based on a median price target of $1.49 is about 14.6%. Based on the high price target of $3.72, the upside potential for the stock is 186%.

Analysts expect Aurora to report fiscal first-quarter revenue of $40.1 million, which would be up by about 2.8% sequentially but down by 15.5% year over year. The company is expected to report an adjusted loss per share of $0.11, compared to the prior quarter’s loss of $0.16 per share and the year-ago loss per share of $0.19. For the full 2023 fiscal year ending in June, Aurora is expected to post a loss per share of $0.33, smaller than last year’s loss of $0.56 per share, on revenue of $181.19 million, up by about 5.4%.

Aurora is not expected to post a profit in 2023, 2024 or 2024. The enterprise value to sales multiple is expected to be 1.5 in 2023. Based on average estimated sales of $192.83 million and $204.1 million for 2024 and 2025, respectively, the multiple is 1.4 for 2024 and 1.3 for 2025. The stock’s 52-week trading range is $0.98 to $8.69. The company does not pay a dividend. Total shareholder return for the past year was negative 82.6%.

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Toast

Since coming public in late September of last year, Toast Inc. (NYSE: TOST) has seen its share price sink by more than 69%. The company operates a cloud-based and digital technology platform for the U.S. and Irish restaurant industries. Since putting up its post-IPO low in mid-May, shares have added about 32%.

When Toast reported better-than-expected second-quarter results in August, it raised full-year guidance. That was a repeat of Toast’s guidance boost after it reported first-quarter results. In a recent upgrade, Mizuho analyst Dan Dolev said Toast could become profitable in 2023, a year ahead of schedule.

Of 17 brokerages covering the stock, 11 have a Buy or Strong Buy rating and the rest rate the shares at Hold. At a share price of around $19.00, the implied gain based on a median price target of $25.00 is 31.6%. Based on the high price target of $29.00, the upside potential for the stock is about 52.6%.

Analysts expect the company to report third-quarter revenue of $720.92 million, up 6.8% sequentially and by 48.2% year over year. Analysts also expect an adjusted loss per share of $0.11, better than the prior quarter’s loss of $0.19 and much better than the year-ago loss of $1.05 per share. For the full 2022 fiscal year, Toast is expected to post a loss per share of $0.38, smaller than last year’s loss of $0.82 per share, on revenue of $2.66 billion, up 55.8%.

Toast is not expected to post a profit until 2024. The enterprise value to sales multiple is expected to be 3.3 in 2022. Based on average estimated sales of $3.53 billion and $4.57 billion for 2023 and 2024, respectively, the multiple is 2.5 for 2023 and 1.9 for 2024. The stock’s 52-week trading range is $11.91 to $61.75. Toast does not pay a dividend, and total shareholder return for the past year is negative 68.7%.

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