Investors may be tempted to look past the remaining days of this week in favor of the fourth of July weekend, but this would be a big mistake. While the broad market may see light trading volume and uninspired stock returns, there are still lots of companies with upcoming catalysts. Investors should take a close look at the below list of names and make sure that their positions are properly adjusted for coming events.
Dendreon Corp (NASDAQ:DNDN) - June 30
The biotechnology company is expensive based on trailing performance, but the company is at a turning point as its revenues should rise significantly along with the coming increased production capacity of its star drug, Provenge, in the coming year. Investors should pay close attention to the stock and right size their positions because the FDA is expected to announce the their decision regarding DNDN's Orange County California facility by June 30.
As is often the case, expectations are not symmetric. Considering the premium on the stock price, the stock will likely see more downside from an unfavorable ruling, than upside from a favorable ruling. The company has become a favorite of smart money investors. This has helped the stock during its upswing, but it could also accelerate the downside if hedge fund investors rush to the exits if there is bad news.
Apollo Group Inc (NASDAQ:APOL) - June 30
The for-profit education company is one of the foremost names in the stock group through their University of Phoenix brand. The company has weathered some of the regulatory storm along with the rest of the industry. Earnings next week could move the stock and the rest of the education industry. APOL currently trades at a trailing P/E of 16.15 and a forward P/E of 13.57.
Consellation Brands Inc (NYSE:STZ) - June 30
The global alcoholic beverage powerhouse is expected to report earnings this week. The company's valuable brands include Robert Mondavi, Arbor Mist and SVEDKA Vodka Modelo. They also import and market brands like Corona, Modelo, Pacifico, St Pauli Girl and Tsingtao. The company currently trades at a trailing P/E of 8.00 and a forward P/E of 9.74. Investors should keep in mind that trailing performance was benefited by below normal tax liability.
Lawson Software Inc (NASDAQ:LWSN) - Next week
The enterprise software support company has struggled with revenue declines in recent years and at current valuations, the company appears expensive. The pricey stock trades at a trailing P/E of 39.82, a forward P/E of 18.58. From 2008 to 2010, revenues dropped from $851.93 million to $736.41 million. The company has a surprising collection of notable shareholders including: Carl Icahn, Soros Fund Management and Clearbridge Advisors.
Mccormick & Co Inc (NYSE:MKC) - June 30
The company engages in the manufacturing and distribution of flavor and spice products under brands that include: Lawry's, Old Bay, Thai Kitchen, McCormick, Simply Asia and El Guapo. The company has grown revenues modestly over the last three years. Between 2008 and 2010, the revenues increased from $3.18 billion to $3.34 billion. During that same period, the company grew net income by nearly 50% because of improved margins as well as the elimination of non recurring expenses from 2008. The company has trailing P/E of 18.11 and a forward P/E of 16.41.
Schnitzer Steel Industries Inc (NASDAQ:SCHN) - June 30
The company operates a steel manufacturing business that processes scrap steel. The company has a trailing P/E of 14.84, a forward P/E of 11.07 and a PEG ratio of 0.84. While revenues bounced back sharply from the depths of the financial crisis, they are still significantly below previous highs of $3.64 billion in 2008.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.