Stocks To Watch: Tesla Twist And Retail Rally

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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.

The retail sector is on fire as a healthier level of consumer spending at U.S. stores and online override the concerns over tariffs and F/X swings holding down some multinationals. While Walmart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST), Dollar General (NYSE:DG), Williams-Sonoma (NYSE:WSM) and Five Below (NASDAQ:FIVE) all scratched out new all-time highs recently, strength has also been seen with chains setting up shop in malls. On a YTD basis, the list of retail outperformers includes New York Company (NWY) +87%, Boot Barn (NYSE:BOOT) +64%, Abercrombie & Fitch (NYSE:ANF) +57%, Destination Maternity (NASDAQ:DEST) +64%, American Eagle Outfitters (NYSE:AEO) +51%, Cato (NYSE:CATO) +49%, Macy's (NYSE:M) +45%, Genesco (NYSE:GCO) +42%, Guess (NYSE:GES) +38%, Williams-Sonoma (WSM) +38%, Shoe Carnival (NASDAQ:SCVL) +38%, Urban Outfitters (NASDAQ:URBN) +30%, DSW (DSW) +30% and Nordstrom (NYSE:JWN) +30%. The outsized gains in retail could attract even more attention from investors next week as the sectors impacted negatively by tariffs see some selling pressure.


Notable earnings reports: HEICO (NYSE:HEI) on August 27; Best Buy (NYSE:BBY), Box (NYSE:BOX), Hain Celestial (NASDAQ:HAIN) and Tiffany (NYSE:TIF) on August 28; Salesforce.com (NYSE:CRM), Dick's Sporting Goods (NYSE:DKS), America Eagle Outfitters (AEO) and Five Below (FIVE) on August 29; Lululemon (NASDAQ:LULU), Ambarella (NASDAQ:AMBA), American Outdoor Brands (NASDAQ:AOBC), Dollar Tree and Dollar General and Ulta Beauty (NASDAQ:ULTA) on August 30. See Seeking Alpha's Earnings Calendar for the complete list of earnings reporters.

Tesla: It's going to be an interesting day of trading on Monday after Tesla (NASDAQ:TSLA) CEO Elon Musk announced late Friday night that he and the board decided that the company will stay public.

Spotlight on Lululemon: Sizzling numbers are expected out of Lululemon when it reports quarterly results on August 30. Analysts expect the company to report Q2 revenue of $668M (+15% Y/Y) and EPS of $0.49 (+26%), as well as boost its FY19 guidance marks. Keep an eye on the e-commerce number after Lululemon saw explosive 60% online sales growth in Q1 to account for 24% of total sales. The tricky part on Lululemon again is valuation following a blistering 76% YTD rally.

Spotlight on Best Buy: Analysts have been pushing up estimates on Best Buy with strong earnings reports from suppliers Lenovo, Sony and Samsung boding well for the retailer's electronics business. Investors can also look at the sizzling numbers from Target and Walmart as an indication that Best Buy will impress. Consensus Q2 estimates on Best Buy are revenue of $9.27B and EPS of $0.82. Shares of Best Buy are up 11% over the last 30 days heading into the report.

IPO lockup expirations: Zuora (NYSE:ZUO) on August 31.

Analyst quiet period expirations: Cushman & Wakefield (NYSE:CWK) and Sonos (NASDAQ:SONO) on August 27; Arlo Technologies (NYSE:ARLO) on August 28.

Analyst/investor meetings: Pluralsight (NASDAQ:PS) on August 29 and Box on August 30.

Projected dividend increases: EastGroup (NYSE:EGP) to $0.67 from $0.64.

Upcoming stocks split: Gravity (NASDAQ:GRVY) 2-for-1 on August 27, Mastech Holdings (NYSEMKT:MHH) 2-for-1 on August 27.

Jetsons redux: The Japanese government is serious enough about developing flying technology that it's bringing in executives from Boeing (NYSE:BA), Uber (NYSE:UBER), ANA Holdings (OTCPK:ALNPY), Toyota (NYSE:TM) startup Cartivator and Japan Airlines (OTCPK:JAPSY) on August 29 to discuss the concept. Industry insiders say practical applications of flying cars aren't as far as many people think.

Business update call: Moody's (NYSE:MCO) will update investors on August 28.

OPEC watch: The OPEC+ Joint Technical Committee is scheduled to review the implementation of production cuts on August 27 in a meeting that was delayed from August 20. The OPEC+ Joint Ministerial Monitoring Committee may also hold its monthly conference call on the same date.

Free trading: JPMorgan (NYSE:JPM) is planning to roll out a mobile investing app next week that includes free research and at least some free trading for retail customers. The move by JP is seen as a push for millennials and could evolve into a robo-adviser platform. The verdict is still out on what the impact will be on TD Ameritrade (NASDAQ:AMTD), Charles Schwab (NYSE:SCHW), E*Trade (NASDAQ:ETFC) and Interactive Brokers (IEX:IBKR).

Focus on China tech: A couple of conferences are putting executives from Chinese media and technology companies up on the stage. China Distance Education (NYSE:DL) and PPDAI (NYSE:PPDF) are due to present at the Credit Suisse 6th Annual China Internet Conference, while the Morgan Stanley China Technology Media & Telecom Conference roster includes Jianpu Technology (NYSE:JT), Xunlei (NASDAQ:XNET) and PPDA Group.

Chocolate plans: Hershey's (NYSE:HSY) management team will provide an update on the company's growth strategies related to digital commerce during a live webcast on August 28. CEO Michele Buck and CFO Patricia Little will conduct a general question and answer session. Shares of Hershey are down 13% YTD.

VMworld 2018: The digital infrastructure event hosted by VMware (NYSE:VMW) takes place in Las Vegas from August 26-30. Speakers include VMware CEO Pat Gelsinger, CTO Ray O'Farrell and Amazon (NASDAQ:AMZN) Web Services CEO Andy Jassy. Monness Crespi says it expects positive news out of the event.(neutral): Given constructive trends in software this earnings season, the spending backdrop for VMware appears healthy, and expects positive news from VMworld next week; At VMworld 2018, VMware’s premier digital infrastructure event, you can find what you need to launch the digital transformation that relies on you

Finding a chair:The supervisory board at Thyssenkrupp (OTCPK:TYEKF) could meet next week to fill the vacant board chairman position. The German multinational conglomerate has been operating with an interim chairman since the middle part of July amid some widespread management turmoil.

Early election watch: Analysts are starting to dial up the stock market advice tied around the U.S. election. Height Capital Markets says the recent political news is a "net benefit" to Democrats, although it won't be enough to change the difficult math to swing the U.S. Senate out of the GOP control. The research firm has been projecting for the last couple of months that the Democrats will pick up enough House seats to put them in the majority. "The biggest drivers of a Democratic flip in the House are issues that will likely invigorate and motivate existing and new voters at the polls, such as gun control, healthcare, and immigration." Ammunition stocks Sturm, Ruger (NYSE:RGR), Vista Outdoor (NYSE:VSTO) and American Outdoor Brands (AOBC) tend to see extra volatility around national elections.

M&A tidbits: The Verscend Technologies buyout of Cotiviti (NYSE:COTV) is scheduled for August 27. FCC petitions to deny the Sprint (NYSE:S)/T-Mobile (NASDAQ:TMUS) deal are due in on August 27. The Marriott Vacations (NYSE:VAC) acquisition of ILG(NASDAQ:ILG) is expected to close on August 31 if shareholders approve the deal during a vote on August 28.

PDUFA potential: The FDA has review dates in front of it on Horizon Pharma's (NASDAQ:HZNP) Ravicti sNDA and Akcea Therapeutics (NASDAQ:AKCA)/Ionis Pharmaceuticals' (NASDAQ:IONS) volanesorsen NDA.

Nevada gaming numbers: The Nevada Gaming Control Board is expected to post numbers for July at the end of the week. Over the last 11 months, statewide gaming win is up 3.2% to 11.82B and Las Vegas Strip gaming win is up 2.0% to $6.60B. Casino stocks such as Caesars Entertainment (NASDAQ:CZR), Boyd Gaming (NYSE:BYD), Wynn Resorts (NASDAQ:WYNN), MGM Resorts (NYSE:MGM), Las Vegas Sands (NYSE:LVS), Red Rock Resorts (NASDAQ:RRR), Full House Resorts (NASDAQ:FLL) and Golden Entertainment (NASDAQ:GDEN) sometimes react to the Nevada release.

Box office: Only three films are expected to top $10M during a relatively quiet weekend for the U.S. box office. Crazy Rich Asians is expected to take in $18.6M for Warner Bros. (NYSE:TWX), while the debuting The Happytime Murders from STX Entertainment is forecast to draw $13.5M. WB's The Meg is still swimming around and seen bringing in another $12M to help the film top $100M for its run in the domestic market. The U.S. box office is up 9.2% YTD to $8.04B. That extra traffic has helped shares of AMC Entertainment (NYSE:AMC) run up a 27% gain this year.

Barron's mentions: The videogame industry moving to the cloud is seen as a positive for Electronic Arts (NASDAQ:EA) and Activision Blizzard (NASDAQ:ATVI). There is also a dive into Netflix's (NASDAQ:NFLX) style of reporting earnings that is intriguing. Microsoft (NASDAQ:MSFT), Puma (OTCPK:PMMAF) and Roper Technologies (NYSE:ROP) are called potential winners of Internet 3.0.

Sources: Nasdaq, EDGAR, Reuters, Bloomberg.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.