Stocks To Watch: Uber Time

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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.

A trade agreement could be announced next week between the U.S. and China to end the long period of negotiations between Washington and Beijing. "If the tariffs come off, you might get some readjustment to earnings expectations. So, you might have a nice couple of days, but I think it's three-quarters of the way priced in, maybe a little bit more," predicts RBC Chief U.S. Equities Strategist Lori Calvasina. Another 50 S&P 500 companies are due to spill earnings during the week, with Disney (NYSE:DIS), News Corp (NASDAQ:NWS) and Viacom (NASDAQ:VIA) throwing a spotlight on the media sector. Then there is the gigantic Uber IPO scheduled for the end of the week. It's also that time of year again for hedge fund types to meet. Keep an eye on Seeking Alpha's news feed for updates from the Ira Sohn Conference on May 6 and SALT on May 7-10.


Notable earnings reports: Tyson Foods (NYSE:TSN), Hertz Global (NYSE:HTZ) and Bausch Health (NYSE:BHC) on May 6; Electronic Arts (NASDAQ:EA), Lyft (NASDAQ:LYFT), Anheuser-Busch InBev (NYSE:BUD) and Wynn Resorts (NASDAQ:WYNN) on May 7; Disney (DIS), Roku (NASDAQ:ROKU), Etsy (NASDAQ:ETSY), Fox (NASDAQ:FOXA) and Madison Square Garden (NYSE:MSG) on May 8; GoPro (NASDAQ:GPRO), Booking Holdings (NASDAQ:BKNG), Keurig Dr Pepper (NYSE:KDP) and Trade Desk (NASDAQ:TTD) on May 9; Viacom (NASDAQ:VIAB), JD.com (NASDAQ:JD) and Linde (NYSE:LIN) on May 10. See Seeking Alpha's Earnings Calendar for the complete list of earnings reporters.

Uber time: Uber (NYSE:UBER) is expected to start trading on May 10 to high expectations. The pricing is expected to fall in a range of $44 to $50 a share, with the company setting a valuation range of $80B to $91B vs. initial expectations for a +$100B debut. By the numbers, Uber showed an operating loss of $3B last year on $11.3B in revenue and negative free cash flow of $2.1B. Still, Atlantic Equities prefers Uber to Lyft (LYFT). "Given the benefits of scale, we prefer Uber, with its market-leading ridehailing position augmented by the fast growing Eats business and freight brokerage opportunity. We forecast ’18-22 27%/34% gross bookings/adj gross profit CAGRs, driven by high-teens ridehailing growth, rapid Eats/freight expansion and eventual easing in promotional intensity," said the firm. Meanwhile, Wedbush is starting off coverage with an Outperform rating and price target of $65. "The brand loyalty of Uber is hard to dispute as the company continues to attract drivers and consumers illustrating an impressive formula to go after a $5.7 trillion opportunity globally on transportation which swells to$7-$8 trillion when including third-party food delivery and freight/logistics," notes analyst Dan Ives. As for Lyft, the company is due to disclose earnings on May 7 in a highly-anticipated report that could set off some volatility and provide metrics to compare to Uber. The plans of Uber and Lyft will be closely watched by Avis Budget (NASDAQ:CAR), Hertz Global (HTZ), Tesla (TSLA, General Motors (NYSE:GM) and Ford (NYSE:F).

Expected IPO pricings: Parsons (NYSE:PSN) and Milestone Pharmaceuticals (NASDAQ:MIST) on May 7; HeadHunter (NASDAQ:HHR), Applied Therapeutics (NASDAQ:APLT), Cortexyme (NASDAQ:CRTX), NextCure (NASDAQ:NXTC), Mayville Engineering (NYSE:MEC), South Plains Financial (NASDAQ:SPFI), Axcella Health (NASDAQ:AXLA) on May 8; Postal Realty (NYSE:PSTL) and Sonim Technologies (NASDAQ:SONM) on May 8 along with Uber (UBER).

IPO lockup expirations: CNFinance (NYSE:CNF) on May 6 and Toughbuilt Industries (NASDAQ:TBLTU) on May 8.

IPO quiet period expirations: Pagerduty (NYSE:PD) and Tufin Software (NYSE:TUFN) on May 6; Jumia Technologies (NYSE:JMIA) on May 7.

Projected dividend changes (quarterly): Baxter (NYSE:BAX) to $0.22 from $0.19, Cardinal Health (NYSE:CAH) to $0.4906 from $0.4763, Expeditors (NASDAQ:EXPD) to $0.48 from $0.45, Diamondback (NASDAQ:FANG) to $0.1875 from $0.125, HollyFrontier (NYSE:HFC) to $0.34 from $0.33, KLA-Tencor (NASDAQ:KLAC) to $0.81 from $0.75, Microchip (NASDAQ:MCHP) to $0.366 from $0.365, Mosaic (NYSE:MOS) to $0.05c from $0.025, Phillips 66 (NYSE:PSX) to $0.90 from $0.80, TE Connectivity (NYSE:TEL) to $0.48 from $0.44, Tractor Supply (NASDAQ:TSCO) to $0.35 from $0.31, Cabot Corp (NYSE:CBT) to $0.345 from $0.33, CNO Financial (NYSE:CNO) to $0.11 from $0.10, FactSet (NYSE:FDS) to $0.68 from $0.64, HNI (NYSE:HNI) to $0.305 from $0.295, Idex (NYSE:IEX) to $0.48 from $0.43, Innospec (NASDAQ:IOSP) to $0.50 from $0.45, J2 Global (NASDAQ:JCOM) to $0.455 from $0.445, Quaker Chemical (NYSE:KWR) to $0.385 from $0.37, Legg Mason (NYSE:LM) to $0.36 from $0.34, MSA Safety (NYSE:MSA) to $0.41 from $0.38, Materion (NYSE:MTRN) to $0.11 from $0.105, National Bank Holdings (NYSE:NBHC) to $0.19 from $0.17, nVent Elec (NYSE:NVT) to $0.185 from $0.175, Sturm Ruger (NYSE:RGR) to $0.30 from $0.28, Timken (NYSE:TKR) to $0.29 from $0.28, United Community Banks (NASDAQ:UCBI) to $0.17 from $0.16, Vishay Intertech (NYSE:VSH) to $0.10 from $0.085, Werner Enterprises (NASDAQ:WERN) to $0.11 from $0.09, Watts Water (NYSE:WTS) to $0.23 from $0.21.

M&A tidbits: Shareholders at Fidelity Southern (NASDAQ:LION) and Ameris Bancorp (NASDAQ:ABCB) vote on the planned merger on May 6. There is also a merger vote at Nightstar Therapeutics (NASDAQ:NITE) on May 8 over the $25.50/share offer from Biogen (NASDAQ:BIIB). The Qlik acquisition of Attunity (NASDAQ:ATTU) is scheduled to close on May 10. Companies with M&A talk likely to be swirling around them include Anadarko (NYSE:APC), WageWorks (NYSE:WAGE) and Mack-Cali Realty (NYSE:CLI).

More jeans to trade: VF Corp.'s (NYSE:VFC) spinoff of Kontoor Brands (KTB) is expected to start trading on a when-issued basis next week before its official debut on May 22. The new company will include the Wrangler, Lee and Rock & Republic brands as well as the VF Outlet business. Kontoor will give Levi Strauss (NYSE:LEVI) a very comparable trading partner. Shares of Levi Strauss are up 32% over where the denim giant's IPO was priced in March.

Analyst/investor meetings: Intel (NASDAQ:INTC) and USA Truck (NASDAQ:USAK) on May 8; Bluebird bio (NASDAQ:BLUE) on May 9; Fox (FOXA) on May 10.

Airlines on watch: Traffic reports and guidance updates are on tap for the airline sector. Keep an eye on American Airlines (NASDAQ:AAL), Mesa Air (NASDAQ:MESA), Delta Air Lines (NYSE:DAL), United Continental (NASDAQ:UAL), Spirit Airlines (NYSE:SAVE), Hawaiian Holdings (NASDAQ:HA), SkyWest (NASDAQ:SKYW), JetBlue (NASDAQ:JBLU), Southwest Airlines (NYSE:LUV), Alaska Air Group (NYSE:ALK) and Allegiant Travel (NASDAQ:ALGT).

American Academy of Neurology 2019 Annual Meeting: One of the biggest events in the healthcare sector next week is the AAN meeting scheduled for Philadelphia. Key presentations are expected out of Allergan (NYSE:AGN) on ubrogepant PTC Therapeutics (NASDAQ:PTCT)-Roche (OTCQX:RHHBY) on risdiplan, Ionis Pharmaceuticals (NASDAQ:IONS)-Biogen (BIIB) on tofersen, Alexion Pharmaceuticals (NASDAQ:ALXN) on soliris, Jazz Pharmaceuticals (NASDAQ:JAZZ) on sunosi, GW Pharmaceuticals (NASDAQ:GWPH) on epidiolex, Ra Pharmaceuticals (NASDAQ:RARX) on zilucoplan, Biohvane Pharmaceutical (NYSE:BHVN) on rimegepant and Ovid Therpeutics (NASDAQ:OVID) on OV101. Also at AAN, Eli Lilly (NYSE:LLY) has a first-time presentation of lasmiditan clinical data on the onset of response for the acute treatment of migraine and Exicure (OTCQB:XCUR) plans to present a poster on "Spherical Nucleic Acids Show Increased Distribution and Longer Persistence than Linear Oligonucleotides in Rat Brain Following IT Administration."

Dueling developer conferences: Alphabet (GOOG, GOOGL) will have its Google I/O conference running in Mountain View, California from May 7-9. There is some buzz that the developer festival could include some Pixel news. Running at the same time up north in Seattle will be Microsoft Build. Microsoft (NASDAQ:MSFT) usually presents the latest Windows roadmap plus any additions to Office, Azure or other leading software/services at its annual developer conference.

SALT: SkyBridge Capital's SALT conference is back in Las Vegas after a one-year absence. The gathering of hedge fund players sometimes leads to speculation over deals and M&A. Featured speakers include an interesting mix of Steve Case, Nikki Haley, Michael Milken, Kara Swisher, Sam Zell, Mark Cuban as well as execs from Morgan Stanley (NYSE:MS), HP (NYSE:HPQ), IBM (NYSE:IBM), BlackRock (NYSE:BLK) and Goldman Sachs (NYSE:GS).

Red Hat Summit: The keynote speakers at Red Hat's open source conference include Lockheed Martin's (NYSE:LMT) Michael Cawood, UPS' Ken Finnerty, Microsoft's (MSFT) Satya Nadella and IBM's (IBM) Ginni Rometty.

Oil & Gas: The MUFG Oil & Gas Conference runs in New York from May 9-10. Companies making an appearance include Hess Midstream Partners (NYSE:HESM) and EnLink Midstream (NYSE:ENLK).

Data watch: Same-store restaurant sales for April are due out next week. Last month, average spending per guest rose 3.0% to offset a 1.8% drop in same-store traffic. Also, keep an eye on Sturm, Ruger (RGR), Vista Outdoors (NYSE:VSTO) and American Outdoor Brands (NASDAQ:AOBC) with firearm background check data from the FBI's National Instant Criminal Background Check System due out. Gun-related stocks rallied in April following the NICS release.

Ford mobility: Ford (F) plans to share details on its mobility business at Citi's 2019 Car of the Future Symposium on May 9. Ford X's and ex-Autonomic CEO Sundeep Madra will speak about how Ford is nurturing a culture of innovation and speed as it transforms to deliver smart vehicles for a smart world. In addition, Madra will discuss Ford’s mobility services and solutions including the Transportation Mobility Cloud by Autonomic. He will also describe the successful applications and services Ford is building for the customers of its increasingly connected fleet of vehicles and how other OEMs can do the same using the TMC, now powered by Amazon Web Services.

Upcoming stock splits: Can-Fite BioPharma (NYSEMKT:CANF) says it will change the ratio of its American Depositary Shares to ordinary shares from one ADS per two ordinary shares to a new ratio of one ADS per thirty ordinary shares on May 10.

Sales updates: Fastenal (NASDAQ:FAST) on May 6; Costco (NASDAQ:COST) on May 10.

Heart test presentation: Boston Scientific Corporation plans to release key data at the Heart Rhythm Society's 40th Annual Heart Rhythm Scientific Sessions in San Francisco on May 8-11. Safety and efficacy data from the company' Untouched study of the Subcutaneous Implantable Defibrillator System as well as a pooled analysis of data from the Multicenter Automatic Defibrillator Implantation trials will be presented during late-breaking clinical trial sessions on May 10.

Notable annual meetings: Wynn Resorts (WYNN heads into its annual meeting on May 7 with the support of proxy firms ISS and Glass Lewis for all of its proposals and board nominees. Also holding meetings this week are Empire Resorts (NASDAQ:NYNY) on May 6, Autoliv (NYSE:ALV) and Discovery (NASDAQ:DISCA) on May 8; Marriott International (NASDAQ:MAR) and Yum China (NYSE:YUMC) on May 10.

Box office: Avengers: Endgame rolls into its second weekend with a U.S. box office tally of $452M (#17 all-time) and global haul of $1.664B (#6 all-time). Still showing this weekend at over 4.6K U.S. theaters, forecasters expect the Disney film to bring in +$150M. That mark is ahead of the all-time record set by Star Wars: The Force Awakens with its second weekend at the box office.

Barron's mentions: Churchill Downs (NASDAQ:CHDN) is called a risky bet on the day of the running of the Kentucky Derby due to its high valuation. Farfetch (NYSE:FTCH), Home Depot (NYSE:HD), Lovesac (NASDAQ:LOVE), Nike (NYSE:NKE) and Zuora (NYSE:ZUO) make the list of stocks seen benefiting from a surge in millennial spending. The publication notes that by 2020 millennial spending will account for $1.4T in U.S. retail sales or 25% of all retail sales. Despite the huge box office rush to see Avengers, theater stocks Cinemark (NYSE:CNK) and AMC Entertainment (NYSE:AMC) are still seen trading at low valuations compared to Netflix (NASDAQ:NFLX), which trades at 10X annual sales vs. 1.5X for Cinemark and 0.3X for AMC. Alphabet (NASDAQ:GOOG) management needs to rethink its secretive ways and report real numbers for all its businesses, according to Tae Kim. He also thinks the tech giant should use part of its $109B cash hoard to offer shareholders a proper buyback plan.

Sources: CNBC, Nasdaq, EDGAR, Reuters, Bloomberg, Box Office Mojo