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.
Will Apple (NASDAQ:AAPL) percolate right along after earnings unlike the tracks of Facebook, Netflix and Twitter? Investors find out on July 31 as Apple cruises into the report to expectations of revenue of $52.3B, EPS of $2.23 and iPhone shipments of 41.6M units. The iPhone X impact on ASP and margins will be on display again. Looking ahead to FY19, Loup Ventures analyst Gene Munster predicts iPhone unit growth of 3% to top the flat unit growth forecast by the Street. It’s time to hear from the Labor Department on jobs, with the Employment Situation report due out on August 3. Economists expect nonfarm payrolls to drop to 195K from 213K a month ago and for the unemployment to dip to 3.9% from 4.0%. Average hourly earnings are forecast to be up 0.3% M/M and 2.7% Y/Y. While labor inflation hits certain sectors harder than others and can impact corporate profits, analysts note that the +75% YTD increase in corporate buybacks this year adds at least a little political pressure for wage growth to track higher. Also, don’t sleep on those China PMI numbers due out on July 31. The CNY/USD gyrations have been a popular topic with execs on Q2 earnings calls explaining away their guidance updates.
Notable earnings reports: Caterpillar (NYSE:CAT), Seagate Technology (NASDAQ:STX), Illumina (NASDAQ:ILMN) and Transocean (NYSE:RIG) report on July 30; Apple, Baidu (NASDAQ:BIDU), Pandora (NYSE:P), Pfizer (NYSE:PFE), Akamai Technologies (NASDAQ:AKAM), Procter & Gamble (NYSE:PG) and BP (NYSE:BP) are scheduled for July 31; Tesla, Fitbit (NYSE:FIT), Zynga (NASDAQ:ZNGA), Wynn Resorts (NASDAQ:WYNN) and Square (NYSE:SQ) spill numbers on August 1; Alibaba (NYSE:BABA), GoPro (NASDAQ:GPRO), Activision Blizzard (NASDAQ:ATVI), MGM Resorts (NYSE:MGM), Yum Brands (NYSE:YUM), CBS(NYSE:CBS) just days after the Moonves allegations, Take-Two Interactive Software (NASDAQ:TTWO) and DowDuPont (NYSE:DWDP) step up on August 2; and Berkshire Hathaway (BRK.A, BRK.B) and Kraft Heinz (NASDAQ:KHC) are the headliners on August 3. See Seeking Alpha’s Earnings Calendar for the complete list of earnings reporters.
Spotlight on Tesla: The EV automaker is in line to spill earnings on August 1. Once again, the company’s updates on the Model 3 ramp and full-year S/X/3 production guidance will steal the headlines from the quarterly numbers, although the non-GAAP automotive margin rate and average selling prices are starting to become more significant as the company scales up. There’s no question that Tesla’s (NASDAQ:TSLA) conference call is a must-hear event. Check out Seeking Alpha’s live blog on the twists and turns of the Q&A – no matter if you are a Tesla advocate or a skeptic.
IPOs expected to price: Cushman & Wakefield (CWK) and Sonos (SONO) on August 1; Arlo Technologies (ARLO) on August 2.
IPO lockup expirations: Corp America Airports (NYSE:CAAP), Hudson (NYSE:HUD), Sol-Gel Technologies (NASDAQ:SLGL), One Stop Systems (NASDAQ:OSS) and Central Puerto (NYSE:CEPU) on July 31; FTS International (NYSE:FTSI) on August 1.
Central banks spotlight: The FOMC meets on July 31-August 1 amid expectations that it will confirm its plan to stay on a path of gradual rate hikes. BNP Paribas anticipates some slight marking up of the Fed’s language will be the extent of the action until a rate hike is fired off by the policy-making committee in September. There won’t be too much drama with the Bank of Japan meeting on July 30-31, although some finetuning of market operations is likely to tweak the ultra-loose policy. BNP also sees the potential for the BOJ to modify the composition of ETF buying. Meanwhile, a “dovish” 25 basis point rate increase is expected out of the Bank of England when it meets on August 1-2.
Projected dividend increases: Cboe (NASDAQ:CBOE) to $0.30 from $0.27, Dover (NYSE:DOV) to $0.50 from $0.47, Federal Realty (NYSE:FRT) to $1.03 from $1.00, Illinois Tool (NYSE:ITW) to $0.97 from $0.78, Kraft Heinz (KHC) to $0.65 from $0.625, MSCI (NYSE:MSCI) to $0.50 from $0.38, ResMed (NYSE:RMD) to $0.38 from $0.35, Simon Property (NYSE:SPG) to $2.00 from $1.95, American States Water (NYSE:AWR) to $0.275 from $0.255, Cheesecake Factory (NASDAQ:CAKE) to $0.33c from $0.29, Cogent Comms (NASDAQ:CCOI) to $0.54 from $0.52, Cognex (NASDAQ:CGNX) to $0.050 from $0.045, Chemed (NYSE:CHE) to $0.30 from $0.28, Jack in the Box (NASDAQ:JACK) to $0.45 from $0.40, Littelfuse (NASDAQ:LFUS) to $0.41 from $0.37, Resources Connection (NASDAQ:RECN) to $0.13 from $0.12, Sturm Ruger (NYSE:RGR) to $0.33 from $0.32, Scotts Miracle-Gro (NYSE:SMG) to $0.55 from $0.53.
Motorcyle magic: Harley-Davidson (NYSE:HOG) plans to update investors on its “accelerated” business strategy. The information release will include ways Harley expects to unlock new markets and segments (electric update?) and create broader access to customers. Of course, Harley is one of the poster companies for trade-related pain. Last week, Harley CFO John Olin said steel and aluminum tariffs will cost the company $15M to $20M and EU tariffs will impact it negatively by $30M to $35M. Harley execs are working with the Trump Administration and European government officials to try to find relief. HOG shares have cut into their YTD loss, now showing as down about 13%. Harley’s update could be of interest to traders of other recreational vehicle-related stocks such as Polaris (NYSE:PII), Textron (NYSE:TXT), Arcimoto (NASDAQ:FUV), LKQ (NASDAQ:LKQ) and Winnebago (NYSE:WGO) depending upon which way it goes.
Upcoming stock splits: The payable date for a 3-for-1 stock split by PSB Holdings (OTCPK:PSBQ) is on July 31. After the split, PSB will have about 4.5M shares outstanding.
Long Island shade: Bernstein has a look ahead on the U.S. airlines sector in a report amusingly titled Why the group is catching a bid (and why you shouldn’t take your airline shorts to the Hamptons. “We continue to expect the industry to manage for profit over share or other considerations in the face of higher oil prices, and see further room for sentiment to improve,” writes analyst David Vernon. Bernstein is Overweight the U.S. airlines sector as a whole and ranks (in order) Delta Air Lines (NYSE:DAL), American Airlines Group (NASDAQ:AAL), Southwest Airlines (NYSE:LUV) and United Continental (NYSE:UAL) as top picks.
Analyst/investor meetings: Cardiovascular Systems (NASDAQ:CSII) on July 31.
Focus on community banks: Keefe, Bruyette & Woods’ nineteenth Annual Community Bank Investor Conference is scheduled for July 31-August 1 in New York City. The meeting of community bank execs includes participation from First Internet Bank (NASDAQ:INBK), QCR Holdings (NASDAQ:QCRH), Bank of Marin Bancorp (NASDAQ:BMRC), Byline Bancorp (NYSE:BY), Capital City Bank Group (NASDAQ:CCBG), Hanmi Financial (NASDAQ:HAFC), United Community Financial Corp. (NASDAQ:UCFC), MVB Financial Corp. (NASDAQ:MVBF), MutualFirst Financial (NASDAQ:MFSF) and Midland State Bancorp (NASDAQ:MSBI). The conference arrives with the community bank sector buzzing with M&A activity.
FDA Watch: Pdufa dates are on the calendar for Progenics Pharmaceuticals (NASDAQ:PGNX) with its Azedra NDA and United Therapeutics (NASDAQ:UTHR) for its resubmitted NDA for RemoSynch. July 31 is the decision date on Mylan’s (NASDAQ:MYL) generic to Allergan’s (NYSE:AGN) Restasis for dry eyes.
M&A watch: The merger of Capella Education (NASDAQ:CPLA) and Strayer Education (NASDAQ:STRA) is expected to close on August 1 after the companies get past the walk date of July 31. The final extension date on the called off Sparton (NYSE:SPA) – Ultra Electronics (OTCPK:UEHPY) merger arrives this week.
Energizing stuff: It’s a busier week than normal setting up in the energy sector as a number of data reads are due to arrive on top of earnings reports. Releases include a forecast of Cushing crude inventory, the API weekly report on U.S. oil inventory, EIA’s monthly crude/natural gas report, the Baker Hughes rig count and a Bloomberg OPEC production survey and monthly tanker tracking estimate. LNG stocks could also be volatile as President Trump’s goal of seeing Europe buy “massive” amounts of the fuel either gains steam or loses momentum. Cheniere Energy (NYSEMKT:LNG), NextDecade (NASDAQ:NEXT), Gazprom (OTCPK:OGZPY), Tellurian (NASDAQ:TELL), Cabot Oil & Gas (NYSE:COG), EOG Resources (NYSE:EOG) and Devon Energy (NYSE:DVN) are some of the companies that could be impacted by new LNG developments.
U.S. auto sales: Manufacturers report on U.S. sales on August 1. Edmunds expects U.S. auto sales to fall back 2.3% Y/Y in July to 1.378M units. The research firm estimates a seasonally adjusted annual rate of 16.7M for the month. “With market factors such as rising interest rates keeping shoppers at bay, we expect to see a continued slowdown of the vigorous sales pace that the industry experienced in the first half of the year,” says Edmunds analyst Jeremy Acevedo. July forecast by automaker – General Motors (NYSE:GM) -1.0% to 224K, Toyota (NYSE:TM) -7.0% to 207K, Ford (NYSE:F) -1.5% to 196K, Fiat Chrysler (NYSE:FCAU) +2.7% to 166K, Honda (NYSE:HMC) -6.8% to 141K, Nissan (OTCPK:NSANY) -5.0% to 122K, Hyundai/Kia (OTCPK:HYMLF) -1.3% at 109K, Volkswagen (OTCPK:VLKAY) +4.5% to 48K.
Macau: Gross gaming revenue numbers for July are due out sometime during the week. Analysts expect GGR growth to come in between +10% to +12% for the month, based off channel checks that indicated a VIP hold rate lower than normal. Revised full-year GGR forecasts from research firms following the release could move Wynn Macau (OTCPK:WYNMF, OTCPK:WYNMY, WYNN), Sands China (OTCPK:SCHYY, OTCPK:SCHYF, LVS), MGM China (OTCPK:MCHVF, OTCPK:MCHVY, MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF, OTCPK:SJMHY) and Melco Resorts & Entertainment (NASDAQ:MLCO).
National Avocado Day: Chipotle (NYSE:CMG) is offering free guacamole as part of an online/app-only marketing promotion on July 31. Shares of Chipotle are already celebrating the event, up 6% since the restaurant company reported Q2 earnings.
Box office: Ethan Hunt is back and he’s not fooling around, with Paramount’s (NYSE:VIA) Mission: Impossible – Fallout debuting in a staggering 4,386 theaters. The theater tally marks the seventh largest U.S. opening of all-time, according to Box Office Mojo. The latest Mission Impossible installment is expected to bring in +$50M during the weekend to easily outpace the $18M seen being delivered by Universal’s (NASDAQ:CMCSA) Mamma Mia! Here We Go Again and $16M from the debuting Teen Titans Go! To the Movies from Warner Bros. (NYSE:TWX).
Barron’s mentions: Triton International (NYSE:TRTN) is trotted out as a shipping play that looks like a winner and yields close to 7%. The publication is sticking with its bullish view on Facebook (NASDAQ:FB) after the monster slide. “Outside of technology, it’s hard to find big companies with similar growth and valuations to Facebook and Alphabet,” wrote Andrew Bary. Fiat Chrysler, GM, XPO Logistics (NYSEMKT:XPO) and First Republic (NYSE:FRC) are also mentioned in the issue as undervalued, while Pioneer Natural Resources (NYSE:PXD), Medicines Co. (NASDAQ:MDCO), Cooper (NYSE:COO) and Idexx Laboratories (NASDAQ:IDXX) are called stocks that could help reduce portfolio risk and boost growth.
Sources: EDGAR, Bloomberg, Financial Post and Reuters.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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