US software stocks to keep rebounding, says Goldman Sachs prime brokerage note | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Futures-options traders work on the floor at the New York Stock Exchange's NYSE American (AMEX) in New York City, U.S., February 20, 2026. REUTERS/Brendan McDermid [Purchase Licensing Rights, opens new tab]- Companies[Goldman Sachs Group Inc]FollowLONDON, Feb 26 (Reuters) - Goldman Sachs prime brokerage sai ...

DoorDash delivery bag on a doorstep with food order visible, highlighting delivery demand and DASH stock focus. Key Points DoorDash’s guidance reset the narrative, with analysts and institutions pointing to a rebound setup and meaningful upside from key support levels. Management is leaning into growth in 2026, raising spend while still targeting EBITDA margin expansion over time. Q4 headline misses didn’t derail core momentum, but competition and regulation remain the main risks to monitor. Intereste ...

Group 1 - The stock of streaming giant NFLX is currently trading at its lowest levels since 2025, near a significant buildup of put open interest at the 80 strike price [1] - The max pain point has shifted higher to 90 through the April expiration, which has been providing support for recent price action [1] - The front-month gamma-weighted Schaeffer's open interest ratio (SOIR) stands at 1.26, suggesting a potential beginning of a rebound for the stock [2] Group 2 - The Schaeffer's Volatility Index (SVI) is at 36%, placing it in the 8th percentile of its annual range, indicating that premiums are affordably priced following a post-earnings volatility crush [2] - A recommended April call option has a leverage ratio of 6.9, which means it will double with a 15.1% increase in the underlying equity [3]

Nvidia's stock was on pace to break a five-day losing streak on Friday. ...

Core Insights - Elevance Health Inc (NYSE:ELV) experienced its largest single-day percentage gain since May 2024, reporting profits of $547 million, although this was not sufficient to recover from its worst day since March 2020 due to proposed Medicare Advantage payment rate increases of only 0.09% for 2027 [1] - The stock is currently near a trendline with historically bullish implications, which may assist in reducing its 14.2% year-over-year deficit [1] Technical Analysis - According to Schaeffer's Senior Quantitative Analyst, ELV is within 0.75 of its 100-day moving average's 20-day average true range (ATR), having remained above this level 80% of the time over the last two weeks and 80% of the past 42 trading sessions. This pattern has historically led to an average gain of 5.7% one month later [3] - A similar upward movement from the current position could push ELV back above $363 [3] Market Sentiment - The health insurance stock's 50-day put/call volume ratio at major exchanges is higher than 99% of annual readings, indicating that an unwinding of pessimism could provide positive momentum for the shares [4] - Options for ELV are currently affordably priced, with a Schaeffer's Volatility Index (SVI) of 33% ranking in the 27th percentile of annual readings, suggesting that the stock has exceeded option traders' volatility expectations over the past year [5]

Core Viewpoint - The long-awaited bottom in United Parcel Service (UPS) stock has been reached, and a substantial rebound is underway, supported by improved operational quality and a positive growth outlook for long-term holders [2][7]. Analyst and Institutional Sentiment - Analysts have shifted to a bullish stance, with a consensus rating of Hold and increased price targets initiated in late 2025, continuing into early 2026 [3]. - Institutional ownership stands at 60%, with significant buying activity noted in Q4 2025, indicating a shift towards accumulation as the stock price reached a fresh low [4]. Financial Forecasts - UPS forecasts net revenue of $89.7 billion, approximately 300 basis points above consensus estimates, with growth expected a year earlier than previously anticipated [4]. - Margins are projected to remain strong, suggesting a leveraged earnings rebound is forthcoming [4]. Dividend and Buyback Strategy - The stock yields over 6% and is expected to sustain distribution increases, with 2026 guidance indicating slightly higher payments than in 2025 [5]. - Buybacks reduced the share count by approximately 0.7% in 2025, with expectations for continued reductions in 2026 [5]. Overall Market Position - UPS has returned to growth sooner than expected, with stock price in rebound mode and reliable capital returns anticipated in 2026 [7].

Core Viewpoint - Microsoft Corp (MSFT) shares have declined by 2.4% to $459.49, marking a potential third consecutive loss, while rival Alphabet (GOOGL) reached a $4 trillion market cap due to its AI partnership with Apple (AAPL) [1] Group 1: Stock Performance - MSFT has pulled back to its 260-day moving average, currently within 0.75 of the trendline's 20-day average true range (ATR) [2] - Historically, this signal has occurred nine times in the past decade, with MSFT being higher one month later 78% of the time, averaging a 3.8% gain [2] - A similar move could push MSFT above $477 [2] Group 2: Options Market Sentiment - Options traders are leaning bullish, indicated by a 50-day put/call volume ratio of 2.11, which is higher than 72% of readings from the past year [4] - MSFT's Schaeffer's Volatility Index (SVI) is at 30%, ranking in the 34th percentile of the last 12 months, suggesting that options are currently very affordable [4]

Core Insights - The S&P 500 experienced its third consecutive gain of over 15% in 2025, although not all stocks performed well, particularly after the tariff re-rating in April [2] - Market fluctuations can lead to previously underperforming stocks becoming attractive again, with a focus on three stocks that recently triggered a key technical signal indicating potential recovery in 2026 [3][6] Technical Analysis - The Relative Strength Index (RSI) is a widely used technical analysis tool that measures the momentum of stock price trends, providing insights across various timeframes and asset classes [3][4] - An RSI reading above 70 indicates that a stock is 'Overbought', suggesting a potential for a price correction, while a reading below 30 indicates 'Oversold' conditions, where stocks may be undervalued and poised for a rebound [4][5] - The RSI is not infallible, and while it can signal potential buying opportunities, further investigation is necessary to understand the underlying reasons for a stock's oversold status [5]

Core Viewpoint - Roblox Corp. (NYSE:RBLX) has experienced significant stock price decline since its third-quarter earnings report, despite solid financial performance, due to investor concerns about future profitability and growth [1][2]. Financial Performance - The third-quarter earnings report showed that Roblox exceeded estimates for bookings and had a less-than-expected loss per share, yet the stock price fell sharply [1]. - RBLX stock has lost approximately 32% over the past six months, indicating a significant downturn in investor sentiment [3]. Market Sentiment and Analyst Insights - Investors were primarily concerned about the costs associated with safety initiatives targeting younger consumers, which could impact future profitability [2]. - Analyst Drew Crum from B. Riley Securities noted the potential for Roblox to become a leading entertainment platform, emphasizing the opportunity for compounding social and content network effects [4]. Potential for Recovery - There are indications that RBLX stock may rebound, as Ark Invest, led by Cathie Wood, has made substantial purchases of RBLX shares, acquiring a total of 169,130 shares [3]. - The concept of seller exhaustion may be relevant, suggesting that the significant decline in stock price could mean that most sellers have already exited, potentially leading to a stabilization or recovery [5]. Valuation and Trading Strategy - RBLX stock is currently trading at a lower sales multiple compared to previous months, which may attract contrarian buyers looking for discounted opportunities [6]. - Forward price outcomes for RBLX stock are projected to range between $50 and $130, with a peak probability density near $80, indicating a potential upward bias [12]. Options Trading Perspective - A proposed trading strategy involves a bull call spread with a target price of $100, which could yield a profit of over 481% if the stock rises above the $100 strike price by expiration [18]. - The analysis suggests that the stock may experience heightened activity between $80 and $110 before settling near $80, based on historical patterns [16].

Core Viewpoint - Constellation Brands is showing signs of recovery in early 2026 after a challenging 2025, with a notable rebound in stock performance and better-than-expected earnings results [2][6]. Financial Performance - In Q3 FY2026, Constellation reported net revenue of $2.22 billion, a decline of 10% year-over-year, but exceeded analysts' expectations by approximately $52 million [4]. - The company reported comparable earnings per share of $3.06, down about 6% from the previous year, yet significantly better than the consensus estimate of $2.63, which anticipated a 19% drop [4]. - The beer segment, which constitutes around 90% of revenue, experienced a sales drop of 1%, but this was an improvement compared to the broader beer industry, allowing Constellation to gain market share [5]. Market Dynamics - Despite a general weakness in the beer market, Constellation's beer business has consistently outperformed, leading the beer category in dollar share gains during Q1 and Q2 FY2026 [5]. - The operating margin for the beer segment increased by 10 basis points, indicating effective cost management amidst declining sales [5]. Investor Sentiment - Berkshire Hathaway has increased its stake in Constellation Brands, reflecting long-term confidence in the company's recovery potential despite the stock's previous downturn [6]. - As of January 8, 2026, Constellation shares have risen over 7% in the new year and have rebounded approximately 16% since hitting a low of around $128 in November 2025 [3].