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 Bentonville, Arkansas this week with Walmart (NYSE:WMT) due to release earnings on February 19. The retail giant is expected by many analysts to post strong numbers ($1.39B revenue, $1.33 EPS, +2.9% same-store sales) for the holiday quarter, which could also give a push up to shares of Target (NYSE:TGT), Costco (NASDAQ:COST) and Dollar General (NYSE:DG) – unless the cadence on consumer spending, pricing and labor pressure works in the opposite direction. “Walmart likely had a solid 2018 holiday season, helped by favorable macro trends and initiatives related to merchandising and digital,” previews Telsey Advisory Group ahead of the report. Walmart’s report follows closely after a puzzling December retail sales report that may have been a bit of an outlier. On the economic calendar next week, FOMC minutes and retail sales for January are due out on February 20, while a deluge of reports will pour out on February 21 – including updates on U.S. PMI, durable goods orders, existing home sales and the latest Philadelphia Fed Business Outlook reading. Trade talks between the U.S. and China will continue in Washington, although President Trump’s tease of a deadline extension has taken some of the pressure off.
Notable earnings reports: Walmart (WMT), Devon Energy (NYSE:DVN) and Terex (NYSE:TEX) on February 19; CVS Caremark (NYSE:CVS), Agilent (NYSE:A) and Albemarle (NYSE:ALB) on February 20; Hewlett Packard Enterprises (NYSE:HPE), Boyd Gaming (NYSE:BYD), Baidu (NASDAQ:BIDU) and Roku (NASDAQ:ROKU) on February 21; Wayfair (NYSE:W), Cinemark (NYSE:CNK) and AutoNation (NYSE:AN) on February 22. See Seeking Alpha’s Earnings Calendar for the complete list of earnings reporters.
IPO activity: Another quiet week is on tap for the IPO market with no new pricings anticipated. Investors will take a look at Carbon Black (NASDAQ:CBLK) earnings on February 19 and Dropbox (NASDAQ:DBX) earnings on February 21, but mainly there is a lull while government shutdown delays play out. While Levi Strauss (LEVI) created some excitement with its IPO filing as the company looks to enter new market categories, postponed public offerings from Cibus (NASDAQ:CBUS), BankFlorida (NASDAQ:BFL) and Virgin Trains (NASDAQ:VTUS) tempered enthusiasm that the IPO market is heating up.
CAGNY: Its official name is the Consumer Analyst Group of New York conference, but you might call it the Super Bowl of retail events with a huge number of consumer-facing companies set to present. Morgan Stanley says to expect companies to detail plans to reinvigorate market share and topline trends after sequential improvement towards the end of 2019, as well as give an update on recent pricing actions and highlight any benefits from a recent spot commodity drop. Discussion on emerging markets trends, M&A potential, labor pressures are also anticipated. The Morgan Stanley analyst team sees Procter & Gamble (NYSE:PG), Churchs & Dwight (NYSE:CHD) and Colgate-Palmolive (NYSE:CL) as well positioned to gain after their CAGNY talks. Other companies in Boca Raton from February 18-22 include Coca-Cola European Partners (NYSE:CCEP), General Mills (NYSE:GIS), International Flavors & Fragrances (NYSE:IFF), Ingredion (NYSE:INGR), Johnson & Johnson (NYSE:JNJ), Mondelez International (NASDAQ:MDLZ), Performance Food Group (NYSE:PFGC), Sysco (NYSE:SYY), Tyson (NYSE:TSN), Hershey (NYSE:HSY), Kellogg (NYSE:K), McCormick (NYSE:MKC), Altria (MO,) PepsiCo (NYSE:PEP), Philip Morris International (NYSE:PM), J.M. Smucker (NYSE:SJM), Constellation Brands (NYSE:STZ), Coca-Cola (NYSE:KO), Newell Brands (NASDAQ:NWL), Church & Dwight (CHD), Clorox (NYSE:CLX), Herbalife (NYSE:HLF), Spectrum Brands (NYSE:SPB), TreeHouse Foods (NYSE:THS) and Unilever (NYSE:UN).
Projected dividend changes (quarterly): Analog Devices (NASDAQ:ADI) to $0.52 from $0.48, Albemarle (ALB) to $0.35 from $0.335, CenturyLink (NYSE:CTL) to $0.25 from $0.54, Danaher (NYSE:DHR) to $0.18 from $0.16, Digital Realty (NYSE:DLR) to $1.07 from $1.01, Essex Property (NYSE:ESS) to $1.93 from $1.86, Foot Locker (NYSE:FL) to $0.38 from 34.5, Genuine Parts (NYSE:GPC) to $0.765 from $0.72, Garmin (NASDAQ:GRMN) to $0.55 from $0.53, LyondellBasell (NYSE:LYB) to $1.04 from $1.00, PSEG (NYSE:PEG) to $0.47 from $0.45, Prologis (NYSE:PLD) to $0.50 from $0.48, Sempra (NYSE:SRE) to $0.975 from $0.895, TJX (NYSE:TJX) to $0.21 from $0.195, Waste Management (NYSE:WM) to $0.5125 from $0.465, Williams Cos (NYSE:WMB) to $0.38 from $0.34. Walmart (WMT) to $0.53 from $0.52, Xcel Energy (NYSE:XEL) to $0.40 from $0.38, Armada Hoffler (NYSE:AHH) to $0.21 from $0.20, Cogent Comms (NASDAQ:CCOI) to $0.58 from $0.56, Cinemark (CNK) to $0.33 from $0.32, CyrusOne (NASDAQ:CONE) to $0.50 from $0.46, Carter’s (NYSE:CRI) to $0.49 from $0.45, Cubic (NYSE:CUB) to $0.15 from $0.135, Dick’s Sporting (NYSE:DKS) to $0.2475 from $0.225, Domino’s Pizza Inc. (NYSE:DPZ) to $0.65 from $0.55, Comfort Systems USA (NYSE:FIX) to $0.095 from $0.09, James River Group (NASDAQ:JRVR) to $0.35 from $0.30, LeMaitre Vascular (NASDAQ:LMAT) to $0.085 from $0.07, ManTech (NASDAQ:MANT) to $0.29 from $0.25, Marcus Corp (NYSE:MCS) to $0.175 from $0.15, MGP Ingredients (NASDAQ:MGPI) to $0.09 from $0.08, Insperity (NYSE:NSP) to $0.25 from $0.20, Universal Display (NASDAQ:OLED) to $0.09 from $0.06, Old Republic (NYSE:ORI) to $0.1975 from $0.195, Sturm Ruger (NYSE:RGR) to $0.30 from $0.21, Re/Max (NYSE:RMAX) to $0.22 from $0.20, Retail Opportunity (NASDAQ:ROIC) to $0.20 from $0.195, Ruth’s Hospitality (NASDAQ:RUTH) to $0.12 from $0.11, Service Corp (NYSE:SCI) to $0.19 from $0.17, Telephone & Data (NYSE:TDS) to $0.17 from $0.16, Texas Roadhouse (NASDAQ:TXRH) to $0.27 from $0.25, Domtar (NYSE:UFS) to $0.445 from $0.435.
Samsung: Samsung (OTC:SSNLF) plans to open three retail stores in the U.S. next week. The company is also holding a launch event for the new Galaxy S10 and other products on February 20.
New York Toy Fair: More than 30K studio executives, buyers and toy company reps will descend on Manhattan February 16-19 to take in the annual toy show, according to Variety. Over 7K international buyers are also expected to be in the house for the event. Companies looking to make a splash include Mattel (NASDAQ:MAT), Hasbro (NASDAQ:HAS), Funko (NASDAQ:FNKO), Spin Master (OTC:SNMSF) and JAKKS Pacific (NASDAQ:JAKK). The toy sector could use a lift after devastating guidance from Mattel late on Friday sent shares 18% lower.
M&A tidbits: Shareholders at Cronos Group (NASDAQ:CRON) are due to meet on February 21 to vote on the C$2.4B investment by Altria Group (NYSE:MO). Lawyers from Rent-A-Center (NASDAQ:RCII) will be busy filing post-trial briefs on the legal battle with Vintage Capital.
Barclays Industrials Select Conference: The conference arrives at an unsettled time with the China trade deal still up in the air and transportation/logistics stocks bouncing around with an extra dash of volatility. Companies due to present at the event scheduled for February 20-21 include Caterpillar (NYSE:CAT), Cummins (NYSE:CMI), JetBlue (NASDAQ:JBLU), Norfolk Southern (NYSE:NSC), Parker-Hannifin (NYSE:PH), Regal Beloit (NYSE:RBC), Roper Technologies (NYSE:ROP),Sensata Technologies (NYSE:ST), Summit Materials (NYSE:SUM), Textron (NYSE:TXT), United Continental (NASDAQ:UAL), Gardner Denver (NYSE:GDI), Union Pacific (NYSE:UNP), United Technologies (NYSE:UTX), Woodward (NASDAQ:WWD), XPO Logistics (NYSEMKT:XPO), Honeywell (NYSE:HON), Aptiv (NYSE:APTV), C.H. Robinson (NASDAQ:CHRW), Danaher (DHR), Spirit Airlines (NASDAQ:SAVE), Rockwell Automation (NYSE:ROK), CF Industries (NYSE:CF), Johnson Controls (NYSE:JCI), General Dynamics (NYSE:GD), Lear (NYSE:LEA), United Technologies (UTX), J.B. Hunt Transport (NASDAQ:JBHT), Boeing (NYSE:BA), 3M (NYSE:MMM) and Avery Dennison (NYSE:AVY).
Breakfast wars: McDonald’s (NYSE:MCD) introduces Donut Sticks at select restaurant stock across the U.S. on February 20. The direct challenge to Dunkin’ Donuts (NASDAQ:DNKN) and Krispy Kreme by McDonald’s is a limited time battle until the restaurant chain gauges results.
Rocket ride: A SpaceX (SPACE) Falcon 9 rocket is scheduled to launch sometime in the February 21-22 window. The rocket will carry the PSN 6 communications satellite and SpaceIL’s Lunar Lander, which will be the first Israeli spacecraft to travel beyond Earth orbit and the first private lander on the moon.
Barron’s mentions: Loews (NYSE:L) is called a conglomerate that investors can love due to its big discount to net-asset-value estimates. There is a cautious take on U.S. marijuana operators such as Curaleaf Holdings (OTCPK:CURLF), Acreage Holdings (OTCQX:ACRGF), Green Thumb Industries (OTCQX:GTBIF), MedMen Enterprises (OTCQB:MMNFF), Harvest Health & Recreation (OTCPK:HTHHF), iAnthus (OTCQX:ITHUF) and Trulieve Cannabis (OTCPK:TCNNF). Even though $50B in annual black-market spending could roll into a new consumer goods industry, the path to profitability is seen as rocky. The publication calls out stocks that look attractive in front of a data center boom, with Equinix (NASDAQ:EQIX), CoreSite Realty (NYSE:COR), Iron Mountain (NYSE:IRM) and InterXion Holding (NYSE:INXN) making the list.
Sources: CNBC, Nasdaq, EDGAR, Reuters, Bloomberg