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. A podcast of Stocks to Watch is also available on Sundays on Seeking Alpha, Apple Podcasts, Stitcher and Spotify (click the highlighted links).
The week ahead will feature updates on construction spending, factory orders and trade before the big July jobs report at the end of the week. The range of forecasts from economists is wide, but the U.S. economy is expected to have added 2.26M jobs in July vs. 4.80M in June and the unemployment rate is forecast to drop to 10.3%. Also of interest, the labor force participation rate is forecast to drop to 61.1% from 61.5% last month and average hourly earnings are seen increasing 5.9% Y/Y, due in part to a higher mix of job losses near the minimum wage level. On the corporate calendar, another busy of week of earnings arrives with 20% of the companies in the S&P 500 Index on the slate and the IPO market heats up a bit with Rocket Companies (RKT) and Rackspace Technologies (RXT) debuting. On the COVID-19 front, the FDA is nearing a decision to authorize emergency use of antibody-rich blood plasma from recovered COVID-19 patients and corporate vaccine developments are expected to continue to roll in. Finally, market watchers are looking for a stimulus package from Congress covering extra unemployment benefits and the hot run for gold is gaining interest.
Earnings spotlight: McKesson (NYSE:MCK), Marathon Petroleum (NYSE:MPC), Tyson Food (NYSE:TSN), AIG(NYSE:AIG), Tenet Healthcare (NYSE:THC) and Dish Network (NASDAQ:DISH) on August 3; BP (NYSE:BP), US Foods (NYSE:USFD), Exelon (NASDAQ:EXC), Prudential (NYSE:PRU), Disney (NYSE:DIS), Allstate (NYSE:ALL), Ralph Lauren (NYSE:RL) and Fox Corporation (NASDAQ:FOXA) on August 4; Honda (NYSE:HMC), CVS Health (NYSE:CVS), Humana (NYSE:HUM), Wayfair (NYSE:W), Wendy’s (NASDAQ:WEN), MetLife (NYSE:MET) and Western Digital (NASDAQ:WDC) on August 5; Cardinal Health (NYSE:CAH), Bristol-Myers (NYSE:BMY), ViacomCBS (NASDAQ:VIAC), Mylan (NASDAQ:MYL), Yeti (NYSE:YETI), T-Mobile (NASDAQ:TMUS), Con Edison (NYSE:ED) and Uber (NYSE:UBER) on August 6; Magna International (NYSE:MGA), Domtar (NYSE:UFS) and Canadian Solar (NASDAQ:CSIQ) on August 7.
Go deeper: See Seeking Alpha’s Catalyst Watch foe earnings plays
IPO watch: Rocket Companies (RKT) is expected to price its IPO on August 5. The parent of Quick Loans is looking to raise $3.15B at an expected pricing range that would value the company at just under $40B. Cloud hosting services provider Rackspace Technology Global (RXT) will price its IPO of 33.5M shares on August 5 in an expected range of $21 to $24. Apollo Global Management’s stake in Rackspace will fall to 63.5% from 78.3% if underwriters sell their full allotment of shares. Other pricings next week include Oak Street Health (OSH) and BigCommerce (BIGC) on August 5, as well as Ibex (NASDAQ:IBEX) on August 6. IPO share lockups expire on Beam Therapeutics (NASDAQ:BEAM), Casper Sleep (NYSE:CSPR), PPD, Inc. (NASDAQ:PPD), Schrödinger (NASDAQ:SDGR) Silk Road Medical (NASDAQ:SILK) on August 4, as well as NexPoint Real Estate Finance (NYSE:NREF), OneWater Marine (NASDAQ:ONEW) and Professional Holding (NASDAQ:PFHD) on August 5. Analysts can start doling out ratings on Nkarta (NASDAQ:NKTX), Quhuo (NASDAQ:QH) and Inventiva SACA (NASDAQ:IVA) on August 4 with quiet period expiring.
Go deeper: Catch up on all the latest IPO news.
M&A tidbits: Google’s (NASDAQ:GOOG) $2.1B bid for Fitbit (NYSE:FIT) is anticipated to face a full-scale European Union antitrust investigation next week. The antitrust probe is expected to look into the potential use of data in health care. LVMH (OTCPK:LVMHF) and Tiffany (NYSE:TIF) are edging closer to seeing the finish line in their merger.
Projected dividend changes (quarterly): Badger Meter (NYSE:BMI) to $0.19 from $0.17, Steris (NYSE:STE) $0.40 to $0.37,Carlisle (NYSE:CSL) to $0.54 from $0.50, Reinsurance Group (NYSE:RGA) to $0.75 from $0.70, Chemed (NYSE:CHE) to $0.34 from $0.32, Leidos (NYSE:LDOS) to $0.36 from $0.34 Cable One (NYSE:CABO) to $2.375 from $2.25 $2.375, ResMed (NYSE:RMD) to $0,41 from $0.39, Illinois Tool Works (NYSE:ITW) to $1.09 from $1.07, Cogent Comms (NASDAQ:CCOI) to $0.69 from $0.68, Federal Realty (NYSE:FRT) to $1.06 from $1.05 $1.06, Community Healthcare Trust (NYSE:CHCT) to $0.4225 from $0.420, Microchip (NASDAQ:MCHP) to $0.368 from $0.3765.
Samsung event: Samsung’s (OTC:SSNLF) is holding a hardware event called Galaxy Unpacked on August 5 with as many as five hardware devices expected to be unveiled. The virtual presentation could include details on Galaxy Note 20 (regular and Ultra versions), Galaxy Fold 2, Galaxy Watch 3, Galaxy Buds Plus and Galaxy Tab S7/S7 Plus tablets. Qualcomm (NASDAQ:QCOM) will be front and center with its Snapdragon 865 or 865 Plus expected to be highlighted for 5G support. Shares of Samsung are up 7.4% YTD and Qualcomm is 17.3% higher.
Google event: An easter egg teaser page indicates Google’s (NASDAQ:GOOGL) will be showing off its long-awaited Pixel 4a phone on August 3. The phone is rumored to have a 5.8-inch OLED display, 6GB of RAM, 64GB of storage and be powered by Qualcomm’s (QCOM) 730 chipset. Pricing and exact order details for the budget phone are undetermined for now, but will likely be part of the reveal.
Online rush: The disruption from the online retail sector hit hyperdrive during the pandemic and has sent shares soaring as investors continue to make bets that many consumers have adapted for the long term. The list of gainers includes Overstock.com (NASDAQ:OSTK) +762% YTD, (NASDAQ:PRTS) +494%, Fiverr (NYSE:FVRR) +289%, Wayfair (W) +172%, Etsy (NASDAQ:ETSY) +145%, Farfetch (NYSE:FTCH) +133%, MercadoLibre (NASDAQ:MELI) +90%, 1-800-Flowers.com (NASDAQ:FLWS) +87%, Blue Apron (NYSE:APRN) +85%, Carvana (NYSE:CVNA) +69%, Amazon (NASDAQ:AMZN) +64% YTD, Chewy (NYSE:CHWY) +64%, eBay (NASDAQ:EBAY) +50%, Shutterstock (NYSE:SSTK) +22% and Alibaba (NYSE:BABA) +18%. The sector gets a test next week when Wayfair (W) posts Q2 numbers. Analysts expect Wayfair to see 69% revenue growth for the quarter on sky-high demand for home furnishings. Piper Sandler lifted its estimates on Wayfair’s sales growth for Q3 to +50% vs. +37% prior and +40% in Q4 vs. +29% prior. A catch-all for the sector is the ProShares Online Retail ETF (NYSEARCA:ONLN).
Go deeper: Dig into the online retail ETF’s momentum comparisons.
Business updates: Senior leaders from Ford (NYSE:F) will discuss the Q2 operating environment and the company’s financial results during a fireside chat hosted by RBC Capital Markets on August 3. The discussion will also range across topics such as global redesign, cost actions, portfolio refresh and upcoming vehicle launches including the all-new Ford F-150, new Bronco family and all-electric Mustang Mach-E. NI (NASDAQ:NATI) is hosting a virtual investor conference on August 4, Cimpress (NASDAQ:CMPR) has its Investor Day set for August 5, while TerrAscend (OTCQX:TRSSF) has an Investor Day event on August 6 and eXp World Holdings (NASDAQ:EXPI) has a virtual investors Q&A session.Go deeper: Seeking Alpha’s Catalyst Watch breaks down potential market-moving updates.
Healthcare watch: Aptinyx (NASDAQ:APTX) is hosting a virtual R&D Day focused on the company’s development efforts in post-traumatic stress disorder on August 5. Dicerna (NASDAQ:DRNA) has a virtual R&D event on the schedule for August 6. FDA action dates arrive for DBV Technologies’ (NASDAQ:DBVT) Viaskin peanut on August 5, Bristol-Myers’ (BMY) CM-9LA Opdivo + Yervoy cancer treatment on August 6, Trevena’s (NASDAQ:TRVN) Oliceridine on August 7 and Eagle Pharmaceuticals’ (NASDAQ:EGRX) Ryanodex on August 8.
Spotlight on industrials: Jefferies Global Industrials Conference is running from August 5-6 in a virtual format. The online gathering of over 150 public & private companies and 2K leading executives, institutional investors, private equity investors & VCs will address near- and long-term investment opportunities and discuss the current mechanisms driving industrials sectors in the U.S. and internationally. Participating companies include Bridgestone (OTCPK:BRDCY), Cree (NASDAQ:CREE), Drive Shack (NYSE:DS), Ericsson (NASDAQ:ERIC), Franklin Electric (NASDAQ:FELE), Kraton (NYSE:KRA), MRC Global (NYSE:MRC), NRG Energy (NYSE:NRG), SRAX (NASDAQ:SRAX), Veritiv (NYSE:VRTV), Honeywell (NYSE:HON), Aptiv (NYSE:APTV), Lincoln Electric (NASDAQ:LECO), Trex Company (NYSE:TREX), Cummins (NYSE:CMI), Vishay Precision Group (NYSE:VPG), Illinois Tool Works (ITW), Jeld-Wen (NYSE:JELD), Mercury Systems (NASDAQ:MRCY), Caterpillar (NYSE:CAT) and Mercer International (NASDAQ:MERC). Go deeper: See Seeking Alpha’s Catalyst Watch for which presentations may stand out.
Product watch: General Motors (NYSE:GM) is unveiling the first all-electric model for the Cadillac brand at an event on August 6. The Cadillac Lyriq is scheduled for production in China in 2021 before arriving in the U.S. in 2022. GM is using the Lyriq as a launchpad for a new scalable battery architecture. Wedbush Securities notes that GM has been touting its proprietary Ultium battery-cell technology, which can be stacked inside the battery pack either horizontally or vertically. “We view that as one of the highlights of GM’s EV strategy,” says analyst Dan Ives on the EV battery breakthrough.
Biotech breakouts: Some of the virtual presentations of note at the William Blair Biotech Focus Conference 2020 on August 5-6 include talks or fireside chats from Viking Therapeutics (NASDAQ:VKTX), Karuna Therapeutics (NASDAQ:KRTX), CRISPR Therapeutics (NASDAQ:CRSP), Precision Biosciences (NASDAQ:DTIL), Beam Therapeutics (BEAM), Aravive (NASDAQ:ARAV), GBT (NASDAQ:GBT), Krystal Biotech (NASDAQ:KRYS), AskBio and Cardiff Oncology (NASDAQ:CRDF).
U.S. auto sales: TrueCar forecasts U.S. auto sales will fall 18% in July to 1,189,928 units to mark the fourth month in a row of sequential improvement. New light-vehicle sales decreased by 34% in March, 48% in April, 30% in May and 23% in June. “Mainstream brands are steadily increasing their new vehicle sales month-over-month, especially brands with healthy inventory levels such as FCA. Their Jeep brand stands out for strong performance, likely driven by strong incentive programs as well as the inventory levels needed to satisfy the unique demands of shoppers,” notes TrueCar’s Nick Woolard. He notes that luxury brands BMW and Mercedes are recovering at a slower rate amid the tough macroeconomic backdrop. July forecast by manufacturer – General Motors (GM) -18.4% to 192,881 units, Toyota (NYSE:TM) -19.3% to 169,759 units, Ford (F) -14.8% to 164,423 units, Fiat Chrysler Automobiles (NYSE:FCAU) -11.4% to 149,342 units, Honda (HMC) -13.7% to 121,880, Nissan (OTCPK:NSANY) -26.5% to 72,675 units, Subaru (OTCPK:FUJHY) -11.1% to 56,970 units, Hyundai (OTCPK:HYMLF) -5.9% to 55,464 units, Kia (OTCPK:HYMLF) -3.6% to 51,499 units, Volkswagen (OTCPK:VWAGY) -12.2% to 49,073 units, Daimler (OTCPK:DDAIF) -18.6% to 22,420 units, BMW (OTCPK:BMWYY) -25.7% to 19,291 units, Tesla +21.7% to 15,581 units.
Microcaps on display: The SNN Network Virtual Conference next week features presentations by a number of microcap companies. Notable presenters include Helix BioPharma (OTC:HBPCF) on August 3, Redhill Biopharma (NASDAQ:RDHL) on August 4, Electrameccanica Vehicles (NASDAQ:SOLO) on August 5 and Piedmont Lithium (NASDAQ:PLL) on August 6. Microcap stocks have trailed the S&P 500 Index this year, with the iShares Micro-Cap ETF (NYSEARCA:IWC) down 10% and the First Trust Dow Jones Select MicroCap ETF (NYSEARCA:FDM) off 22%.
Stock splits: Houston American Energy (NYSEMKT:HUSA) is due to fire off a 1-for-12.5 reverse stock split on August 3. The reverse split is intended to increase the share price to satisfy the NYSE’s $1.00 minimum bid price requirement for continued listing. The reverse stock split will reduce the number of shares from ~87M shares to ~7M shares.
Radar wars: Raytheon (NYSE:RTX) could land a recommendation in Japan next week from former defense ministers and deputy ministers to replace Lockheed Martin Corp (NYSE:LMT) as the supplier of powerful radars for two Aegis Ashore missile defense sites. The company is pitching Prime Minister Shinzo Abe on placing its SPY-6 radar on refitted destroyers similar to a U.S. Navy plan. Raytheon trails peers this year Northrop Grumman and Lockheed Martin with a share price decline of over 30%.
Barron’s mentions: AutoNation (NYSE:AN), Group 1 Automotive (NYSE:GPI) and CarMax (NYSE:KMX) are seen as compelling plays on a recovery, bumpy or otherwise. AutoNation and Group 1 are labeled contrarian ideas, hinging on company-specific catalysts to lift sales, while CarMax is expected to see strong sales continue as consumers opt for used cars over new cars. Demand factors continue to set up well for gold. That could be good for the SPDR Gold Shares (NYSEARCA:GLD) iShares Gold Trust (NYSEARCA:IAU) ETFs, as well as mining ETFs like VanEck Vectors Gold Miners (NYSEARCA:GDX) and VanEckVectors Junior Gold Miners (NYSEARCA:GDXJ). The cover story delves into the world of SPACs and some of the outsized returns being seen in the category. Pershing Square Tontine Holdings (NYSE:PSTHU), GS Acquisition Holdings (NYSE:GSAHU), Therapeutics Acquisition (NASDAQ:TXAC), Social Capital Hedosophia Holdings II (NYSE:IPOB) and Social Capital Hedosophia Holdings III (NYSE:IPOC) are singled out as some pre-merger SPACS of interest
Sources: Bloomberg, CNBC, Car and Driver, The Verge, Reuters, EDGAR
Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.