3 Stocks that Will Move the S&P 500 This Week

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

In truth, every member of the S&P 500 (SNPINDEX: ^GSPC  ) moves the index on a daily basis. But the three stocks below are likely to make outsized moves this week: Not only are lots of investors are shorting them -- i.e., betting against them -- but each company will be reporting earnings.

Picking out such stocks before they make major moves is actually easier than you might think. The three stocks I singled out last week moved an average 11% after reporting earnings. Here are the three companies to keep an eye on this week, what analysts are expecting, and why they're so heavily shorted.


% of Shares Short

When to Watch

Expected Revenue (millions)

Expected EPS

Frontier Communications (NASDAQ: FTR  )





Windstream (NASDAQ: WIN  )





Chesapeake Energy (NYSE: CHK  )





Sources: Company websites; E*Trade;

It should be noted that Frontier actually reports earnings on Tuesday, but not until the market closes. As such, any major moves in its stock will take place during Wednesday's trading session.

Frontier Communications
Frontier is in the unenviable position of having a customer base consisting of rural, residential landlines. It's easy to see how such a business has no future. That helps explain why investors require such a hefty dividend -- currently yielding 9% -- to own a piece of the company. But even the dividend itself has a history of being cut.

Frontier executives are aiming to transition the company to one with a much larger base of business clients. While the company has been making headway here, the fact that it is still making large interest payments on long-term debt hasn't helped one bit. If there's any slowdown in gaining new business clients, investors should be prepared for bad news when the market opens Wednesday.

Like Frontier, Windstream is also caters to rural customers. Windstream also has an outsized dividend yield, currently hovering around 11.7%.

Unlike Frontier, however, Windstream has been able to grow its operating cash flow from $1.1 billion in 2011 to $1.65 billion over the past 12 months. This has provided investors with a nice stream of income for years.

That being said, Windstream has debt problems of its own. And unless it is able to convince rural customers to sign up for high-speed Internet and video services, investors could have a rough ride ahead this week.

Chesapeake Energy
Finally, we have the nation's second-largest producer of natural gas. It's been an eventful two years for investors in the company, as they've had to endure the shenanigans of former CEO and founder Aubrey McClendon. Now that he's gone, many investors are breathing a sigh of relief, and shares are up almost 70% on the year.

But a run like that has short-sellers wondering if the stock has gotten ahead of itself. Chesapeake has been selling off a ton of noncore assets and laying off hundreds of employees to help raise funds over the past year.

While those are relatively easy moves to make, for the company's stock to prove the shorts wrong, it needs to have success in producing natural-gas liquids and oil instead of traditional dry gas.

Interested in Dividends? Look Here Instead.
Not all dividend stocks are created equal. Though Windstream and Frontier both offer outsized payouts, they aren't the type of healthy dividends that build wealth and help you rest easy at night.  

With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Read/Post Comments (2) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 04, 2013, at 10:51 AM, bigal wrote:

    if you don/t know what your talking about don't give your opinion// frontier declared a 10 cent dividend payable 12/31/13

  • Report this Comment On November 04, 2013, at 11:20 AM, TMFCheesehead wrote:


    We're looking beyond the next payable dividend to the future of the company's dividend for years to come.

    Brian Stoffel

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2711199, ~/Articles/ArticleHandler.aspx, 9/28/2016 1:17:16 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,200.33 -27.97 -0.15%
S&P 500 2,155.81 -4.12 -0.19%
NASD 5,295.56 -10.16 -0.19%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 1:01 PM
CHK $6.43 Up +0.20 +3.20%
Chesapeake Energy CAPS Rating: ***
FTR $4.31 Down -0.03 -0.69%
Frontier Communica… CAPS Rating: ***
WIN $10.25 Up +0.09 +0.89%
Windstream CAPS Rating: **
^GSPC $2155.81 Down -4.12 -0.19%
S&P 500 INDEX CAPS Rating: No stars