Below are the definitions for each scenario
ACTIVIST INVESTOR BUYS STOCK
Shows events where certain activist investors take large, new stakes in a company. They often push for changes to operations, such as selling assets, that can favor shareholders.
ADDED TO S&P 500
Shows events where a company is added to the S&P 500 index.
ADDED TO S&P SMALLCAP 600
Shows events where a company is added to the S&P Smallcap 600 index. The addition often marks a company’s positive performance.
ALZHEIMER'S TRIALS
Shows events where companies exhibit positive outcomes in Phase 1, 2, or 3 clinical trials for drugs that treat or prevent Alzheimer's, which could be big movers of share prices short and long-term.
AMAZON PRODUCT LAUNCH
This scenario notes when Amazon launches a new product. It can be used to identify companies that are negatively affected by Amazon's disruption to other verticals, like telemedicine (TDOC) or pharmacies (CVS).
SCENARIOS > ANTITRUST LAWSUIT
Shows companies sued for antitrust violations. Lawsuits can force operational changes and levy fines though they take years to materialize.
SCENARIOS > BANKRUPTCY
Shows events where bankruptcy filing brings tension and management looks to restructure and survive. This may help shareholders avoid losses and some investors seek a bargain.
BILLION DOLLAR CONTRACTS
Shows events where companies recently won a contract worth $1 billion or more. The new revenue may boost the company’s stock price.
SCENARIOS > BREAKTHROUGH THERAPY
Shows events where the U.S. FDA designated a promising new drug, therapy, or medical device as a "Breakthrough Therapy". These designations are granted by regulators for new therapies that treat illness and seem superior to existing therapies. The event can bring both short and long-term gains.
SCENARIOS > CEO HIRED
Shows companies where there is the hiring of a new CEO. This often boosts optimism in the company, especially for companies with poor earnings and revenue growth. Share prices often rise as a result.
SCENARIOS > CEO DEPARTS
Shows events where a CEO is terminated, retires or dies. This may cause investors to fear an uncertain future without their leadership. In the case of firings, they may worry that the problems run deep. However, if the company has performed poorly, the departure may be viewed positively.
SCENARIOS > CLASS ACTION LAWSUIT
Shows events where class action lawsuits may pose a huge risk for companies, as financial payouts and other concessions can be quite costly. Share prices can turn volatile in the uncertainty.
CRYPTO ADOPTION
Shows events where companies opt to accept cryptocurrency payments, facilitate crypto investing or hold crypto assets. These companies may be viewed as innovators or taking on unneeded risk, depending on the sector they are in.
DOJ OPENS INVESTIGATION
Shows events where investors may flee due to a U.S. Department of Justice investigation which ushers in the possibility of significant penalties and reputational damage.
DIVIDEND CREATION
Shows events where companies exhibit initiation of a dividend, which is a positive event for stocks. For growth stocks, it may be a negative event marking the end of high revenue growth.
DIVIDEND INCREASE
Shows events where companies boost their dividend, which may cause share prices to rise. When the dividend is distributed, the share price typically drops. Large increases in dividends are a signal that company leaders are optimistic enough about the future to give away profits.
DIVIDEND REDUCTION
Shows events where companies reduce or eliminate dividends to reduce costs. These events are seen as negative events and send stocks lower unless there's a reason to preserve cash to keep the company afloat.
MASS LAYOFFS
Shows events where companies layoff workers. This can be seen as positive, prudent events for blue chip companies or disasters for poor-performing companies.
QUICK SPRINTS
Shows events where companies have broken out from their pattern and are reaching new highs. This algorithm-driven scenario locates stocks with incredible momentum.
REMOVED FROM S&P 500
Shows events where companies are removed from the S&P 500 index, since it may drop in value, as funds that track the index sell shares. Companies are also removed when acquired.
STOCK BUYBACK
Shows events where companies announce that they will repurchase their stock. These are generally well-received as it increases the value of every outstanding share by the percent of the company repurchased.
TESLA PRODUCT LAUNCH
Shows events of Tesla's product launch which may receive major attention and provide bidirectional trading opportunities. The widely held stock often rallies or drops steeply around big announcements.
WORKER STRIKE
Shows events where strikes may damage a company's reputation, disrupt the ability to generate revenue, result in wage increases that decrease earnings, and could trigger lawsuits.
RELATED METRICS
CUMULATIVE RETURN - The sum of each event's 1-day price change over the period of time selected.
SIGNAL - Shows whether the event scenario is Bullish (positive) or Bearish (negative).
EVENTS - Shows the number of events under the selected scenario.
WIN RATE - The percentage of events where a stock's price moves in the expected direction (up or down).
AVG 1D RETURN - The difference between the closing price before the event vs the closing price after the event on the next trading day, expressed as a percent change.
TIP: use the toggle switch on each Scenario Card to turn the alert on/off for each scenario. When the alert is turned on, you will receive an email notification each time a new event occurs that meets the criteria of the scenario.
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform.
Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better trader.