Stocks To Watch: FANGs Out In Tech

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by: SA Stocks To Watch

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.

There's no hiding this week if you're an investor in the tech sector, with heavyweights Facebook, Alphabet, Amazon, Intel and Twitter due to report. Facebook (NASDAQ:FB) is expected to show a slight deceleration in DAUs and MAUs for Q2, but still show double-digit growth for the key metrics. The upside impact of Facebook's new products and counterbalancing drags from new regulations will be in the spotlight. Meanwhile, Alphabet plans to account for its monster $5.07B European Union fine in its Q2 report, which could throw the comparison to analyst expectations out of whack. On the revenue side, Alphabet is expected to report sales of $25.58B. Amazon is seen posting 41% Y/Y revenue growth to $53.4B in Q2. Keep an eye on the Seattle e-commerce's giant operating income tally after two consecutive quarters in which OI guidance was smashed. This time around, Amazon guided for an operating income tally of $1.1B to $1.9B, but Morgan Stanley for one expects that range to be topped. Intel rides into Q2 earnings on a flat streak over the last 90 days, while guidance from Twitter could be interesting after the bot disconnection actions.


Notable earnings reports: Alphabet (NASDAQ:GOOGL), Halliburton (NYSE:HAL) and Hasbro (NASDAQ:HAS) on July 23; AT&T (NYSE:T), Texas Instruments (NYSE:TXN), Verizon (NYSE:VZ), Lockheed-Martin (NYSE:LMT) and United Technologies (NYSE:UTX) on July 24; Gilead Sciences (NASDAQ:GILD), Facebook (FB), Qualcomm (NASDAQ:QCOM) and Ford (NYSE:F) on July 25; Amazon (NASDAQ:AMZN), Chipotle (NYSE:CMG), Under Armour (NYSE:UAA), Starbucks (NASDAQ:SBUX), Intel (NASDAQ:INTC), McDonald's (NYSE:MCD), Mastercard (NYSE:MA) and PayPal (NASDAQ:PYPL) on July 26; Twitter (NYSE:TWTR), ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX) and Merck (NYSE:MRK) on July 27. See Seeking Alpha's Earnings Calendar for the complete list of earnings reporters.

Spotlight on Starbucks: The retail coffee giant heads into earnings day with expectations low following a pre-announcement (+1% global comparable sales) and a late start to the Afternoon Made marketing campaign. While analysts think Starbucks is gaining traction with digital initiatives in the U.S. and see almost no impact from the Philadelphia incident, the track in China is still up for debate. Was the China comparable sales deceleration for Starbucks in FQ2 a blip due to delivery issues or a sign of competition/pricing pressure? Starbucks trades 12% lower than where it stood during its last earnings report.

IPOs expected to price: Aquestive Therapeutics (NASDAQ:AQST), Bloom Energy (NYSE:BE) on July 24; Aurora Mobile (NASDAQ:JG), Pinduoduo (NASDAQ:PDD), Tenable (NASDAQ:TENB), Cango (NYSE:CANG), Liquidia Technologies (NASDAQ:LQDA), Berry Petroleum (NASDAQ:BRY) on July 25; Opera (NASDAQ:OPRA) and Endava (NYSE:DAVA) on July 26.

IPO lockup expirations: Pagseguro Digital (NYSE:PAGS) on July 23; Menlo Therapeutics (NASDAQ:MNLO), Eyenovia (NASDAQ:EYEN) and Gates Industrial (NYSE:GTES) on July 24; Solid Biosciences (NASDAQ:SLDB), Armo Biosciences (NASDAQ:ARMO) and PlayAGS (NYSE:AGS) on July 25.

Analyst quiet period expirations: BJ’s Wholesale (NYSE:BJ), The Lovesac (NASDAQ:LOVE), Tracinda (NASDAQ:TCDA), Brightview (NYSE:BV), Neon Therapeutics (NASDAQ:NTGN), Neuronetics (NASDAQ:STIM), Uxin (NASDAQ:UXIN), Everquote (NASDAQ:EVER), HyreCar (NASDAQ:HYRE), Forty Seven (NASDAQ:FTSV) and Translate Bio (NASDAQ:TBIO) on July 23.

China: President Trump's threat to pile on tariffs on $500B worth of imports from China is likely to take a significant amount of time to play out if it extends beyond just a negotiating tactic. "The USTR will need to issue proposed tariff lists, and hold further public comment periods before finalization, likely delaying additional tariffs well into the fall," observes Height Capital Markets. What's not taking time to progess is the slide in the yuan against the dollar. After the People's Bank of China set the USD's reference rate at 6.7671 yuan, the yuan traded as low as 6.8363 per dollar, the weakest level since June 2017. Just a partial list of companies that have mentioned China F/X pressure on conference calls this year includes Skechers (NYSE:SKX), Bausch Health (NYSE:BHC), Unilever (NYSE:UL), Wynn Resorts (NASDAQ:WYNN), Yum China (NYSE:YUM), Philip Morris International (NYSE:PM), Abbott Laboratories (NYSE:ABT), Genuine Parts (NYSE:GPC), Las Vegas Sands (NYSE:LVS) and Mead Johnson (NYSE:MJN). Gauging the impact of the CNY/USA conversion rate on individual stocks could supercede dueling tariffs.

Projected dividend increases/decreases: Bank of America (NYSE:BAC) to $0.15 from $0.12, BB&T (NYSE:BBT) to $0.405 from $0.375, Comerica (NYSE:CMA) to $0.43 from $0.34, Expedia (NASDAQ:EXPE) to $0.32 from $0.30, Hershey (NYSE:HSY) to $0.696 from $0.656, Kellogg (NYSE:K) to $0.56 from $0.54, Mondelez (NASDAQ:MDLZ) to $0.24 from $0.22, Oneok Inc (NYSE:OKE) to $0.82 from $0.795, Regions Financial (NYSE:RF) to $0.14 from $0.09, Synchrony Financial (NYSE:SYF) to $0.21 from $0.15, Wells Fargo (NYSE:WFC) to $0.43c from $0.39, Zions Banc (NASDAQ:ZION) to $0.28 from $0.24, Archrock (NYSE:AROC) to $0.13 from $0.12, BancorpSouth Bank (NYSE:BXS) to $0.155 from $0.14, Cheesecake Factory (NASDAQ:CAKE) to $0.33 from $0.29, Chemical Financial (NASDAQ:CHFC) to $0.29c from $0.28, Encompass Health (NYSE:EHC) to $0.26c from $0.25, Home BancShares (NASDAQ:HOMB) to $0.14 from $0.11, Provident Financial (NYSE:PFS) to $0.21 from $0.20, Papa John's (NASDAQ:PZZA) to $0.265 from $0.225, Reinsurance Group (NYSE:RGA) to $0.55 from $0.50, Interface (NASDAQ:TILE) to $0.07 from $0.065.

Extraordinary shareholder meetings: Disney (NYSE:DIS) shareholders meet on July 27 to vote on the purchase of Twenty-First Century Fox (NASDAQ:FOXA) assets. Also on the calendar are special meetings for Helios and Matheson Analytics (NASDAQ:HMNY) and Farmers Capital Bank (NASDAQ:FFKT) on July 23; First Priority Financial (OTC:FPBK) and Triangle Capital (NYSE:TCAP-OLD) on July 24; as well as CYS Investments (NYSE:CYS), and Two Harbors (NYSE:TWO) on July 27.

Upcoming stock splits: Parker Drilling (NYSE:PKD-OLD) fires off a 1-for-15 reverse stock split on July 27.

Google Cloud Next: One of the largest cloud-focused events takes place in San Francisco from July 24-26. Speakers include a large number of Google execs, as well as reps from Accenture (NYSE:ACN), Cisco (NASDAQ:CSCO), eBay (NASDAQ:EBAY), Colgate-Palmolive (NYSE:CL), Salesforce (NYSE:CRM), Snap (NYSE:SNAP) and Weight Watchers (NYSE:WTW).

Health care bills: The U.S. House will consider three bills related to health care next week. The legislation in the spotlight includes a bill to permanently repeal the Obamacare tax on medical devices, which could impact a wide variety of companies such as Johnson & Johnson (NYSE:JNJ), Medtronic (NYSE:MDT), Baxter International (NYSE:BAX) and Cardinal Health (NYSE:CAH). Also up for consideration is a bill to expand health savings accounts and a bill to put a two-year delay on an Obamacare insurance tax.

FDA Watch: The FDA Pulmonary-Allergy Drugs Advisory Committee meets to discuss GlaxoSmithKline’s (NYSE:GSK) sBLA for Nucala.

Pharma R&D: Glaxosmithkline tipped late yesterday that the company’s top priority is improving performance in the Pharmaceutical business, especially in pharmaceutical research and development. The company says it will set out a new approach to R&D this week.

Patent Watch: The Patent Trial and Appeal Board is due to post a final decision on the Inter Partes Reviews filed by Pfizer (NYSE:PFE) and Samsung Bioepis to challenge Roche’s Herceptin patents.

Major cannabis conference: The National Cannabis Industry Association's Cannabis Business Summit and Expo 2018 is scheduled for July 25-27 in Denver. The keynote speaker is James Cole, former deputy attorney general of the U.S. and author of the important Cole Memo on the legal landscape for cannabis in the U.S. Also presenting are reps from Canopy Growth (NYSE:CGC), Aurora Cannabis (ACBFF), GW Pharmaceuticals (NASDAQ:GWPH), Aphria (APHQF), Supreme Cannabis (OTCQX:SPRWF), MedReleaf (OTCPK:MEDFF), Cronos Group (NASDAQ:CRON), Emerald Health Therapeutics (OTCQX:EMHTF) and Medicinal Marijuana (OTCPK:MJNA) among many others.

SpaceX: A SpaceX (SPACE) Falcon 9 equipped with a Block 5 booster is due to take off from Cape Canaveral on Sunday between 1:50 a.m. and 5:50 a.m. ET. The rocket will carry Telesat's Telstar 19 Vantage satellite. The Block 5 Falcon 9 is the company's next step forward in meeting a public goal to launch a cargo mission to Mars by 2022.

2018 Comic-Con International: Comic-Con runs through the weekend in San Diego. Highlights include the first trailers for Warner Bros.' oceanic superhero movie Aquaman and M. Night Shyamalan’s crossover film Glass, as well as early peeks at the new season of The Walking Dead (NASDAQ:AMCX) and the second season of Star Trek: Discovery. (NYSE:CBS). There's also a lot of buzz at the event over Disney's (DIS) inclusion of new Star Wars clone wars content for its new streaming service, while Netflix (NASDAQ:NFLX) and Warner Bros. (NYSE:TWX) both have large presences to promote new content. Hot demand for Funko (NASDAQ:FNKO) toys is also being reported. Oddities at Comic-Con include a "futuristic" Taco Bell (YUM) on display and a Hyundai (OTCPK:HYMLF) Kona Iron Man Edition SUV. Under-the-radar Comic-Con winners could be Twitter (TWTR) and IGN (NASDAQ:JCOM) due to the large audience numbers from live streams.

Box office: Sequels dominate the scene this weekend, with Universal's (NASDAQ:CMCSA) Mamma Mia! Here We Go Again, Sony's (NYSE:SNE) The Equalizer 2 and BH Tilt's Unfriended: Dark Web all opening. Mamma Mia is expected to be the box office leader by bringing in $37M across 3,317 U.S. theaters, according to Box Office Mojo. The bustling box office has translated into mixed results across the exhibitor sector this year: AMC Networks (NYSE:AMC) +5.6% YTD, Cinemark (NYSE:CNK) +0.5%, Reading International (NASDAQ:RDI) -5.8%, IMAX (NYSE:IMAX) -2.1%, Marcus Corporation (NYSE:MCS) +21.4%, National CineMedia (NASDAQ:NCMI) +23%, Helios and Matheson Analytics (HMNY) -98%.

Barron's mentions: Tech investors may drift to companies in tech with clean balance sheets that are developing fundamental technologies, reasons Tiernan Ray. Names that fit the bill include Lumentum Holdings (NASDAQ:LITE), Finisar (NASDAQ:FNSR), Universal Display (NASDAQ:OLED), Qorvo (NASDAQ:QRVO), Synopsys (NASDAQ:SNPS) and Oslo-traded Thin Film Electronics (OTCQX:TFECF). Automobile industry suppliers firing off a spinoff are seen as more attractive on a valuation basis than the new entities. The case is made for Autoliv (NYSE:ALV) over Veoneer (NYSE:VNE) and Delphi Technologies (NYSE:DLPH) over Aptiv (NYSE:APTV). It's a matchup of yield alternatives as AT&T (T) is compared directly to the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG) .

Sources: EDGAR, Bloomberg, CNBC, CNET and Reuters.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.