Welcome to Seeking Alpha’s Stocks to Watch – a preview of key events scheduled for the next week. Follow this account and turn the e-mail alert on to receive this article in your inbox every Saturday morning.
All eyes will be on the retail sector next week, with Walmart (NYSE:WMT) and Home Depot (NYSE:HD) both reporting earnings on Feb. 20. There is going to be a lot to unpack in the reports from the Dow constituents that combine for a 7.88% weighting of the index, including the impact of wage inflation and tax reform on full-year guidance. Both stocks tend to create some ripples with peers, which places companies such as Lowe’s (NYSE:LOW), Target (NYSE:TGT) and Costco (NASDAQ:COST) on the watch list. On a broad scale, a confident tone from the retail heavyweights could take some of the sting off the underwhelming January report on U.S. retail sales. Checking the tape, Walmart is up 51% over the last 52 weeks and Home Depot is 31% higher.
Notable earnings reports: Superior Energy Services (NYSE:SPN) and Mosiac (NYSE:MOS) on Feb. 19; Home Depot, Walmart, Dominos’ Pizza (NYSE:DPZ), MGM Resorts (NYSE:MGM), Devon Energy (NYSE:DVN) on Feb. 20; Pandora (NYSE:P), Ctrip.com (NASDAQ:CTRP), Boston Beer (NYSE:SAM), Jack in the Box (NASDAQ:JACK) and Wendy’s (NYSE:WEN) on Feb. 21; HP Inc. (NYSE:HPQ), First Solar (OTCPK:FLSR), Herbalife (NYSE:HLF) and Apache (NYSE:APA) on Feb. 22; Pinnacle Entertainment (NYSE:PNK), Hunstman (NYSE:HUN) and Cabot Oil & Gas (NYSE:COG) on Feb. 23. See Seeking Alpha’s Earnings Calendar for the complete list.
3%: The yield on the 10-year Treasury danced to as high as 2.94% last Thursday as it came tantalizingly closer to the 3% yield some analysts see as potentially significant to dividend favorites like Procter & Gamble (NYSE:PG), Exxon Mobile (NYSE:XOM) and Chevron (NYSE:CVX). While concerns over higher rates seem to have receded a bit, there’s still some adjusting to do for investors to a new mix of higher rates and inflation factors. Goldman Sachs thinks companies with low labor costs could stand out in the new environment. Names that make the Goldman short list include Alphabet (NASDAQ:GOOG), Molson Coors (NYSE:TAP), Citigroup (NYSE:C), Deere (NYSE:DE) and Netflix (NASDAQ:NFLX).
IPOs expected to price: Crescent Funding (Pending:CFUNU) on Feb. 22.
Analyst quiet period expirations: Eyenovia (NASDAQ:EYEN), Pagseguro Digital (NYSE:PAGS), Menlo Therapeutics (NASDAQ:MNLO), Gates Industrial (NYSE:GTES), Solid Biosciences (NASDAQ:SLDB), Restorbio (NASDAQ:TORC), ARMO Biosciences (NASDAQ:ARMO) and PlayAGS (NYSE:AGS) on Feb. 20.
Consumer Analyst Group of New York Conference: This is a big one for the retail sector. In past years, plenty of guidance updates and M&A talk has poured out of the conference. Due to speak on Feb. 20 are General Mills (NYSE:GIS), Conagra Brands (NYSE:CAG), Coca-Cola (NYSE:KO), Ingredion (NYSE:INGR), Mondelez International (NASDAQ:MDLZ), Hain Celestial (NASDAQ:HAIN). On Feb. 21, it’s Kellogg (NYSE:K), Philip Morris International (NYSE:PM), Coca-Cola European Partners (NYSE:CCE), Campbell Soup (NYSE:CPB), Altria (NYSE:MO), PepsiCo (NYSE:PEP), Constellation Brands (NYSE:STZ) and J.M. Smucker (NYSE:SJM) giving updates. On Feb. 22, the agenda includes talks from Unilever (UN, UL), Procter & Gamble (PG), Valvoline (NYSE:VVV), Nomad Foods (NYSE:NOMD), Newell Brands (NYSE:NWL), Johnson & Johnson (NYSE:JNJ), International Flavors & Fragrances (NYSE:IFF), Spectrum Brands (NYSE:SPB) and Hormel (NYSE:HRL). Finally on Feb. 23, Danone (OTCQX:DANOY), Colgate-Palmolive (NYSE:CL), L’Oreal (OTCPK:LRLCF, OTCPK:LRLCY), Church & Dwight (NYSE:CHD) and Nestle (OTCPK:NSRGY) take the stage.
Fedspeak galore: While it’s been hard to get a handle on which stocks are moving lockstep with interest rate concerns, traders get another crack this week with a glut of Fed speechs sitting on the calendar as potential party spoilers. Harker speaks on Feb. 21, while Dudley, Quarles and Bostic are all due to talk on Feb. 22. Then on Feb. 23 it’s Rosengren, Dudley, Mester and Williams all due to expound on central bank policy matters.
FDA watch: Jazz Pharmaceuticals (NASDAQ:JAZZ) is expected to hear from the regulator on a review for sleep disorder treatment solriamfetol.
Sales update: Raymond James Financial (NYSE:RJF) on Feb. 21.
Analyst/investor day meeting: Tractor Supply (NASDAQ:TSCO) and Radware (NASDAQ:RDWR) on Feb. 20; DineEquity (NYSE:DIN) on Feb. 21.
Box office: Disney’s (NYSE:DIS) Black Panther is expected to generate huge weekend numbers, with some estimates ranging as high as $180M. The Marvel film opened in over 4K theaters. Sony’s (NYSE:SNE) Peter Rabbit and Universal’s (NASDAQ:CMCSA) Fifty Shades Freed are also in the early part of their runs, while Sony’s Jumanji: Welcome to the Jungle is expected to rack up another $8M. Next week, Paramount’s (NYSE:VIA) Annihilation, Orion Pictures’ Every Day and Warner Bros. (NYSE:TWX) Game Night all debut. The U.S. box office is running about 4% behind last year’s pace for first eight weeks of the year, but has picked up recently. Across the industry, the impact of MoviePass (NASDAQ:HMNY) on admissions and concession revenue for AMC Entertainment (NYSE:AMC), Regal Entertainment (NYSE:RGC), Reading International (NASDAQ:RDI), Marcus Corporation (NYSE:MCS) and Cinemark Holdings (NYSE:CNK) is still being gauged.
Extraordinary shareholder meetings for M&A votes: FCB Financial (NYSE:FCB) and Heartland Financial USA (NASDAQ:HTLF) on Feb. 20.
Non-deal roadshow: Carnival (NYSE:CCL) on Feb. 20; Electronic Arts (NASDAQ:EA) and Take-Two Interactive Software (NASDAQ:TTWO) on Feb 22.
Barron’s mentions: General Electric (NYSE:GE) is profiled in the cover story in a piece that tips to the cautionary side. Boston Properties (NYSE:BXP) and SL Green Realty (NYSE:SLG) are two of the REIT stocks seen as attractive. Hovnanian (NYSE:HOV) is a called a speculative bet.
Babe Ruth: It can’t be ignored that several Seeking Alpha users called their shots last week in the comment stream, including kauba with Twilio (+35%) and stevedas on Preogenic Pharmaceuticals (+11%).
Sources: EDGAR, Bloomberg, Estimize.com and Nasdaq.com.
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