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.
Macro matters: Traders are back to focusing on economic reports after no major developments out of Beijing on trade and a solid jobs report for April. What happens when the unemployment rate falls below 4% Will the 10-year Treasury yield pushes back over 3%? Will crude oil dance over $70 with the US-Iran showdown looming? Next week sets up for a debate over some of these larger picture topics as the earnings season slows down. On the calendar, investors also have Capitalist Woodstock and several tech conferences to soak in.
Notable earnings reports: Zillow (NASDAQ:ZG) and Hertz Global (HTZX) on May 7; Disney (NYSE:DIS), Electronic Arts (NASDAQ:EA) and Valeant Pharmaceuticals (NYSE:VRX) on May 8; Booking Holdings (NASDAQ:BKNG), Groupon (NASDAQ:GRPN) and Mylan (NASDAQ:MYL) on May 9; Nvidia (NASDAQ:NVDA), Yelp (NYSE:YELP) and Dick’s Sporting Goods (NYSE:DKS) on May 10; Thomson Reuters (NYSE:TRI) on May 11. See Seeking Alpha’s Earnings Calendar for the complete list.
IPOs expected to price: Origin Bancorp and Evelo Biosciences (EVLO) on May 8; AXA Equitable (EQH) on May 9; Huya Broadcasting (HUYA) and Abpro (ABP) on May 10.
IPO lockup expirations: Four Seasons Education Cayman (NYSE:FEDU), Metropolitan Bank (NYSE:MCB), CBTX (NASDAQ:CBTX) and InflaRx (NASDAQ:IFRX) on May 7; Apellis Pharmaceuticals (NASDAQ:APLS) and Sogou (NYSE:SOGO) on May 8.
Notable analyst/investor meetings: Citrix Systems (NASDAQ:CTXS), Fidelity National (NYSE:FIS), Red Hat (NYSE:RHT) on May 8; Wells Fargo (NYSE:WFC) on May 10; Evolent Health (NYSE:EVH), Teleflex (NYSE:TFX) and Ameren (NYSE:AEE) on May 11.
Upcoming stock splits: Stellar Biotechnologies (NASDAQ:SBOT) 1-for-7 on May 7; McDermott (NYSE:MDR) 1-for-3 on May 10.
Berkshire Hathaway: Berkshire (BRK.A, BRK.B) shareholders are in Omaha for the company’s annual meeting and to hear once again from Warren Buffett and Charlie Munger. Expect to hear plenty on Apple (NASDAQ:AAPL), Coca-Cola (NYSE:KO), Wells Fargo (WFC) – as well as thoughts on cash deployment and succession. Keep track of the latest developments with Seeking Alpha’s news coverage here. Buffett is also due to talk to CNBC on Monday morning. In the past, Buffett’s appearances on CNBC have been known to stir up share prices.
Projected dividend hike announcements: Baxter (NYSE:BAX) to $0.195 from $0.16, Cohu (NASDAQ:COHU) to $0.07 from $0.06, Expeditors (NASDAQ:EXPD) to $0.45 from $0.42, Jack in the Box (NASDAQ:JACK) $0.45 from $0.40, KeyCorp (NYSE:KEY) to $0.12 from $.105, Leggett & Platt (NYSE:LEG) to $0.37 from $0.36, Lam Research (NASDAQ:LRCX) to $1.10 from $0.50, Microchip (NASDAQ:MCHP) to $0.3635 from $0.363, Phillips 66 (NYSE:PSX) to $0.79 from $0.70, Tractor Supply (NASDAQ:TSCO) to $0.31 from $0.27.
Industrials in focus: Companies presenting at the Oppenheimer Industrial Growth Conference from May 8-9 include Clean Harbors (NYSE:CLH), CTS (NYSE:CTS), Covanta (NYSE:CVA), EnerSys (NYSE:ENS), SPX FLow (NASDAQ:FLOW), Harsco (NYSE:HSC), Lincoln Electric (NASDAQ:LECO), Littelfuse (NASDAQ:LFUS), Matson (NYSE:MATX), McGrath RentCorp (NASDAQ:MGRC), MSA Safety (NYSE:MSA), EnPro Industries (NYSE:NPO), Stericycle (NASDAQ:SRCL), Wildan Group (NASDAQ:WLDN), US Ecology (NASDAQ:ECOL) and Lindsay (NYSE:LNN).
Google I/O: Developers get a crack at talking about new Google (NASDAQ:GOOGL) platforms, open source projects and AI, AR, VR initiatives at the company. The keynote speech by CEO Sundar Pichai could include product announcements.
Microsoft Build Live: Microsoft (NASDAQ:MSFT) hosts a digital experience from May 7-9 on AI, machine learning, cloud computing, app development and other developer topics. CEO Satya Nadella and cloud/enterprise VP Scott Guthire are both scheduled to give keynote speeches.
Trump/60 Minutes: The Sunday news show is digging deep into the high cost of prescription drugs and the fight that the city of Rockford, Illinois is waging against the runaway costs. Leslie Stahl’s report is promised to “pull back the curtain” on the drug distribution chain. It isn’t clear if any drug companies will be called out by name, but heads up Pfizer (NYSE:PFE), Merck (NYSE:MRK), Allergan (NYSE:AGN), AstraZeneca (NYSE:AZN), GlaxoSmithKline (NYSE:GSK) and gang. The delayed speech by President Trump on drug prices is scheduled for May 8.
FDA watch: A FDA panel to discuss drug development for the treatment of children with achondroplasia is planned. Both BioMarin Pharmaceuticals (NASDAQ:BMRN) and Ascendis Pharma (NASDAQ:ASND) have related trials.
Auto lending shakeup: The House of Representatives is expected to overturn the Consumer Financial Protection Bureau’s indirect auto lending guidance next week after the Senate passed the bill last month. Height Capital Markets advises that overturning the indirect auto guidance is positive for indirect auto lenders such as Ally Financial (NYSE:ALLY), Capital One Financial (NYSE:COF), Fifth Third Bancorp (NASDAQ:FITB), Wells Fargo (WFC), and Santander Consumer (NYSE:SC) for the reduced liability risk. The disapproval is also seen as a positive for auto dealers like Penske Automotive Group (NYSE:PAG), AutoNation (NYSE:AN), and Group 1 Automotive (NYSE:GPI) because it will permit them to continue use dealer mark-ups to balance vehicle pricing and financing options to complete sales.
Sales updates: Costco (NASDAQ:COST) on May 9; Buckle (NYSE:BKE), Cato (NYSE:CATO) and L Brands (NYSE:LB) on May 10.
Citi 2018 Car of the Future Symposium: Ford (NYSE:F) is sending Argo AI to the Citi-sponsored event on May 10 to discuss its effort to lead testing and development of a virtual driver system for integration into Ford’s purpose-built self-driving vehicle slated to begin production in 2021. Ford made an investment of $1B in Argo AI last year.
M&A watch: Orbital ATK(NYSE:OA) and Northrop Grumman (NYSE:NOC) may hear from the Department of Defense and FTC on their planned merger. Starbucks (NASDAQ:SBUX) is expected to announce a deal to sell its retail packaged goods business to Nestle (OTCPK:NSRGY). A late Friday report on a key concession from Shari Redstone boosted the odds of a CBS (NYSE:CBS)-Viacom (NYSE:VIA) merger hitting the finish line.
Kentucky Derby: As today is the 144th running of the Kentucky Derby in Lousville, what better time to talk sports betting? The Supreme Court is very close to announcing a decision in the New Jersey case that paves the way for states to control authorized sports betting. Swing voter Justice Kennedy wrote on the issue, “so the citizens of the state of New Jersey are bound to obey a law that the state doesn’t want but that the federal government compels the state to have.” If the SCOTUS ruling is favorable, the six states ready to join Nevada immediately with legalized sports betting are Connecticut, Mississippi, New Jersey, New York, Pennsylvania and West Virginia. Connecting the dots, companies with an interest in the ruling include MGM Resorts (NYSE:MGM), William Hill (OTCPK:WIMHY), Caesars Entertainment (NASDAQ:CZR), Scientific Games (NASDAQ:SGMS), Boyd Gaming (NYSE:BYD) and The Stars Group (NASDAQ:TSG). And as for those latest odds on the Derby, the favorites are Justify (7-2), My Boy Jack (5-1), Mendelssohn (6-1), Good Magic (7-1), Audible (7-1) and Bold d’Oro (9-1).
Barron’s mentions: ExxonMobile (NYSE:XOM) is called a bet of the future of oil. “Most major oil stocks are near their 52-week highs, while Exxon is close to its 52-week low,” notes Andrew Bary. “Investors can get a safe 4% dividend while they wait for the company to be re-energized,” he adds. There’s a warning on Wolverine Worldwide (NYSE:WWW) as the company faces high factory waste cleanup costs. With an eye on rising bond yields, the publication lists ONE Gas (NYSE:OGS), NextEra Energy (NYSE:NEE), Sempra Energy (NYSE:SRE) and Eversource Energy (NYSE:ES) as energy fortress stocks that might be able to withstand the interest rate pressure.
Sources: EDGAR, Bloomberg, CNBC and Nasdaq.com.
Editor’s Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.