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.
President Trump and Kim Jong Un are set to meet on June 12 in Singapore at the isolated Capella Hotel. North Korea is expected to play nice as it looks to make gains with economic development, although there's plenty of wildcards to watch as the summit progresses. The underlying anxiety sent Hong Kong's Hang Seng Index down 1.8% and the Shanghai Composite Index 1.4% lower on Friday ahead of the summit, although the U.S. markets are striding confidently. On the economic front, investors have a FOMC meeting (June 12-13), ECB meeting (June 14) and Bank of Japan meeting (June 14-15) on their plate. The Federal Reserve is expected to raise interest rates and the ECB is looking at setting a timetable for reducing the asset-purchase initiative. The latest read on U.S. consumer prices arrives on the morning of June 12, just ahead of the wave of central bank meetings.
Notable earnings reports: Restoration Hardware (NYSE:RH) and Dave & Buster's Entertainment (NASDAQ:PLAY) on June 11; Korn Ferry International (NYSE:KFY) on June 13; Adobe Systems (NASDAQ:ADBE), Finisar (NASDAQ:FNSR) and Jabil (NYSE:JBL) on June 14; Canada Goose (NYSE:GOOS) on June 15. See Seeking Alpha's Earnings Calendar for the complete list.
IPOs expected to price: Adaptive Insights (ADIN), Charah Solutions (NYSE:CHRA) and US Xpress Enterprises (NYSE:USX) on June 13; Puxin (NYSE:NEW), Verrica Pharmaceuticals (NASDAQ:VRCA) and Avalara (NYSE:AVLR) on June 14.
Analyst quiet period expirations: Pluralsight (NASDAQ:PS) on June 11.
M&A watch: The judge in the Justice Department's attempt to block the AT&T (NYSE:T)-Time Warner (NYSE:TWX) deal is expected to make his ruling during a hearing on June 12. Shares of TWX could be volatile after the decision is announced. "Despite the imminent court ruling, TWX is trading at a ~7% spread to the offer price. Assuming fair value of $88 per TWX share (8.5x 2019E EBITDA, similar to peers), we estimate current T/TWX share prices imply a ~50% probability of the deal closing," explains UBS analyst John Hodulik. A key question is if the DOJ will appeal if the court approves the media mega-merger. A green light for AT&T on the deal could also prompt Comcast (NASDAQ:CMCSA) to make its offer on Fox (FOX, FOXA) to challenge Disney (NYSE:DIS).
Projected dividend hike announcements: Caterpillar (NYSE:CAT) to $0.90 from $0.78, FedEx (NYSE:FDX) to $0.60 from $0.50, H&R Block (NYSE:HRB) to $0.25 from $0.24, Realty Income (NYSE:O) to $0.22 from $0.2195, Target (NYSE:TGT) to $0.66 from $0.62, National Fuel (NYSE:NFG) to $0.425 from $0.415, Shoe Carnival (NASDAQ:SCVL) to $0.08 from $0.075.
Notable analyst/investor meetings: Automatic Data Processing (NASDAQ:ADP) on June 12; Arthur Gallagher (NYSE:AJG) and CommScope (NASDAQ:COMM) on June 13; Avnet (NYSE:AVT), Nova Measuring Instruments (NASDAQ:NVMI), RingCentral(NYSE:RNG) and Compass Diversified (NYSE:CODI) on June 14; Ashford (NYSEMKT:AINC) on June 15.
Upcoming stocks splits: iBio (NYSEMKT:IBIO) plans a reverse split on June 11, shareholders of record will receive one share for every ten shares held before the record date. Trex (NYSE:TREX) has a more traditional 2-for-1 split scheduled for June 18.
D.C. watch: The Senate Agriculture Committee will take up the farm bill on June 13. The House plans to vote on several measures intended to fight opioid addiction. A vote on an immigration bill could take place in the House if just a few more members sign a petition to force action. The bill is likely to be vetoed in its current form by President Trump.
World Cup: There's plenty for investors to consider as the world's most-watched sports event starts next week in Russia. If England does well in the tournament, bookmakers like GVC Holdings (OTCPK:GMVHF) and Paddy Power (OTCPK:PDYPY) could benefit, as well as pub operators such as Greene King (OTCPK:GKNGY) and Marston's (OTCPK:MARZF). Meanwhile, Anheuser-Busch InBev (NYSE:BUD) and Heineken (OTCQX:HEINY) have reasons to pull for teams from the Americas. "We think the best final to maximize the positive impact for ABInBev would be Brazil vs. Mexico," advises Morgan Stanley. Argentina, Spain and Belgium are three of the strongest teams wearing Adidas (OTCQX:ADDYY) jerseys, while Nike (NYSE:NKE) has Brazil, France and England wearing the swoosh. As a reminder, Brazil's flameout in the 2014 World Cup altered the direction of dozens of stocks.
Sports streaming: While billions of people will watch the World Cup games, it's Amazon's (NASDAQ:AMZN) "game changing" move into Premier League soccer streaming that has the attention of GBH Insights' Daniel Ives. "We believe this is a major step forward on the sports bidding rights for Amazon as we expect the company to aggressively bid on more professional and collegiate sports rights over the coming years," he writes. As competition for sports streaming from Amazon and Facebook complicates life for bidders suchs as ESPN (DIS), Fox Sports and Time Warner's (TWX) family of sports networks - expect analysts to push estimates on sports rights costs higher.
E3: The Electronics Entertainment Expo takes place in Los Angeles from June 12 to June 14. The obvious players to watch at the event are Activision Blizzard (NASDAQ:ATVI), Electronic Arts (NASDAQ:EA) and Take-Two Interactive Software (NASDAQ:TTWO), although Epic Games' celebrity Pro-Am Fortnite battle could steal plenty of mindshare. Gamestop sees an E3 surprise announcement on a Nintendo (OTCPK:NTDOY) Switch port for Fortnite, a development that could stoke even more discussion on the Fortnite impact within the videogame industry. Also keep an eye out for news from Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT) during the biggest show in gaming.
William Blair Growth Conference: A huge number of companies are heading to Chicago to talk growth on June 12-14. Just a partial list of the presenters includes Shake Shack (NYSE:SHAK), Six Flags Entertainment (NYSE:SIX), Cheesecake Factory (NASDAQ:CAKE), Party City (NYSE:PRTY), Ulta Beauty (NASDAQ:ULTA), Fastenal (NASDAQ:FAST), Donaldson (NYSE:DCI), Lennox International (NYSE:LII), Accelerate Diagnostics (NASDAQ:AXDX), Incyte (NASDAQ:INCY), DexCom (NASDAQ:DXCM), EXACT Sciences (NASDAQ:EXAS), Align Technology (NASDAQ:ALGN), Myriad Genetics (NASDAQ:MYGN), Repligen (NASDAQ:RGEN), Workday (NYSE:WDAY), Carbonite (NASDAQ:CARB) and NeoGenomics (NASDAQ:NEO).
IHOP mystery: Dine Brands Global (NYSE:DIN) plans to make an official announcement on June 11 about the name change of IHOP to IHOb. There's been plenty of guesses on what the "b" stands for floating around social media. Breakfast, bacon, burgers and blockchain are some of the favorites.
Box office: Disney's Incredibles 2 opens in North America theaters on June 15. Early tracking indicates the Pixar sequel film could top $135M in its opening weekend. The first Incredibles film grossed over $660M globally back in 2004.
Barron's mentions: The publications sees a buying opportunity with German automakers BMW (OTCPK:BMWYY) and Volkswagen (OTCPK:VLKAY) after tariff fears dented shares prices. Southwest Airlines (NYSE:LUV) is also called out as attractive. Avi Salzman reminds that Southwest hedges its fuel costs unlike many of its peers to offer protection against higher oil prices. In the cover story, electricity stocks are analyzed with lower costs for wind and solar plus advances in battery storage all shaking up the grid. American Electric Power (NYSE:AEP), Xcel Energy (NYSE:XEL), NextEra Energy (NYSE:NEE), Exelon (NYSE:EXC) and Public Service Enterprise Group (NYSE:PEG) are all profiled.
Sources: EDGAR, Bloomberg, CNBC and Reuters.
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