Stocks To Watch: Nike, FedEx And Bank Stress Tests

|
Includes: AAPL, ACER, ADDYY, ADPT, ALXN, ARQL, ARVN, BA, BAC, BB, BBIO, BK, BUD, C, CAG, CHL, CHNG, CLLS, CLUB, CMBM, CNC, COF, CVNA, CWH, DIS, DOVA, ELGX, ELY, FDS, FDX, FIZZ, FL, FTCH, GEF, GIS, GNFT, GS, HUM, ILMN, ITRI, JPM, JW.A, KRTX, LCI, LCII, LEN, LINX, LNN, MORF, MRNA, MS, MU, MYOK, NEWT, NKE, NSANY, NTRS, NUVA, OPTN, PACB, PATK, PHCF, PLNT, PMMAF, PNC, PNW, PTON, PUMSY, QCOM, RAD, RCUS, REAL, REGN, RNSDF, RTRX, S, SFIX, SFTBY, SLGL, SNNA, SNY, STT, STZ, SXC, SXCP, THO, TMUS, TNDM, TRVI, TSLA, UAA, UPS, USB, VBIV, VWAGY, WBA, WFC, WGO, WOR, YUM, ZLDSF, ZTCOF
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 podcast of Stocks to Watch is also available on Sundays on Seeking Alpha, iTunes, Stitcher and Spotify.

Expect a little gentle parrying between the U.S. and China before the headline G20 meeting fires off at the very end of the week in Osaka, Japan. Also in the mix, President Trump is reportedly planning to issue an executive order on drug price transparency. The economic calendar will be buzzing next week with new home sales and consumer confidence due out on June 25, trade numbers and durable goods orders released on June 26 and a final crack at Q1 GDP coming in on June 27. Economists think GDP could be revised slightly higher to 3.2% in the final release next week from the second estimate of 3.1%. Finally, it shouldn't be too stressful in the banking sector as the second round of the Federal Reserve Comprehensive Capital Analysis and Review is anticipated to come in favorably on June 27. Stress test results are due out on JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), Capital One (NYSE:COF), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), PNC Financial Services (NYSE:PNC), Northern Trust (NASDAQ:NTRS), State Street (NYSE:STT), U.S. Bancorp (NYSE:USB), Wells Fargo (NYSE:WFC) and Bank of New York Mellon (NYSE:BK).


Notable earnings reports: Micron (NASDAQ:MU), FedEx (NYSE:FDX), Lennar (NYSE:LEN) and FactSet Research (NYSE:FDS) on June 25; Rite Aid (NYSE:RAD), Blackberry (NYSE:BB), National Beverage (NASDAQ:FIZZ) and General Mills (NYSE:GIS) on June 26; Nike (NYSE:NKE), Walgreen Boots Alliance (NASDAQ:WBA) and ConAgra Brands (NYSE:CAG) on June 27; Constellation Brands (NYSE:STZ) on June 28. See Seeking Alpha's Earnings Calendar for the complete list of earnings reporters.

IPO watch: Volkswagen's (OTCPK:VWAGY) Traton is holding investor meetings in London, Paris and Munich next week after gauging response in the U.S. The trucking unit IPO is expected to bring in around €1.5B at the midpoint of its range of €27 to €33 per share. IPOs expected to price during the week include Cambium Networks (NASDAQ:CMBM) on June 25 to be followed by Change Healthcare (NASDAQ:CHNG), Linx (NYSE:LINX), Bridgebio Pharma (NASDAQ:BBIO), Adaptive Biotechnologies (NASDAQ:ADPT) and Morphic Holding (NASDAQ:MORF) on June 26 as well as Karuna Therapeutics (NASDAQ:KRTX) and RealReal (NASDAQ:REAL) on June 27. In Hong Kong, assisted-reproduction company Jinxin Fertility Group is expected to start trading next week.

IPO lockup expirations: Genfit (NASDAQ:GNFT) and Puhui Wealth Investment Management (NASDAQ:PHCF) on June 25.

Projected dividend changes (quarterly): John Wiley (NYSE:JW.A) to $0.34 from $0.33, Lindsay (NYSE:LNN) to $0.32 from $0.31, Worthington Industries (NYSE:WOR) to $0.25 from $0.23.

Spotlight on FedEx: Analysts expect FedEx (FDX) to report revenue of $17.88B and EPS of $4.39 with its FQ4 report. JPMorgan turned some heads by predicting that FedEx would clear the decks with below-consensus guidance across the board. FedEx conference call topics will run the course from fuel costs, tariff headwinds, wage inflation pressure to Amazon. Naturally, shares of UPS (NYSE:UPS) could see a jolt if FedEx surprises to the upside or downside with guidance. So far this year, shares of FedEx are up 4.1% to trail the 5.7% gain for UPS.

Playing Nike earnings: Nike (NKE) is expected to report revenue of $10.2B and EPS of $0.66 when it reports on July 27. Oppenheimer thinks Nike's stepped up investment spending could drag down FQ4 profit and the company's full-year guidance to act as a near-term negative catalyst for shares. "We recommend clients use any share price weakness in NKE as a buying opportunity. In our view, higher costs at the company are strategic in nature and will help to further enhance the prowess of the brand, over time," advises the firm. Foot Locker (NYSE:FL), Under Armour (NYSE:UAA) and Adidas (OTCQX:ADDYY) have all been known to swing up or down with Nike on earnings day.

M&A tidbits: The Sprint (NYSE:S)/T-Mobile (NASDAQ:TMUS) deal is expected to land Department of Justice approval by the end of the week. Illumina (NASDAQ:ILMN) and Pacific Biosciences of California (NASDAQ:PACB) have until the end of the week to respond to competition concerns raised by U.K. regulator in order to keep the $1.2B merger moving forward. The merger between SunCoke Energy (NYSE:SXC)and SunCoke Energy Partners (NYSE:SXCP) is expected to close on June 28.

G20 buildup: French President Emmanuel Macron and Japanese Prime Minister Shinzo Abe are due to meet to discuss Nissan (OTCPK:NSANY) just ahead of the full G-20 meeting. France is advocating for stronger industrial ties between Renault SA (OTC:RNSDF) and Nissan to end some of the tension since the arrest of Carlos Ghosn. Apple (NASDAQ:AAPL) is another company that will be watching the G20 talks closely. Wedbush's Daniel Ives thinks the tariff threat is a $20B to $25B overhang on shares of Apple (AAPL) and predicts the focus out of Cupertino could shift even more to diversifying production out of China.

MWC Shanghai: One of Asia's largest events for next-gen technology takes place in Shanghai on June 28-28. Notable speakers include Qualcomm China (NASDAQ:QCOM) Chairman Frank Meng, Adriel CEO Sophie Eom, China Mobile (NYSE:CHL) Chairman Yang Jie, Huawei Deputy Chairman Ken Hu, ZTE Corporation (OTCPK:ZTCOF) CEO Xu Ziyang and JPMorgan Asia (JPM) VP Jing Ulrich. A summit on 5G technology could be the highlight of the event.

Key analyst/investor meetings: Newtek Business Services (NASDAQ:NEWT) and Pinnacle West (NYSE:PNW) on June 24; Greif (NYSE:GEF) on June 26; Calyxt (NASDAQ:CLLS) and Sol-Gel Technologies (NASDAQ:SLGL) on June 25; Itron (NASDAQ:ITRI) on June 27.

Boston gaming: Wynn Resorts (WYNN is scheduled to officially open the doors to the long-awaited Encore Boston Harbor property on June 23. The casino operator is expecting a crowd of as many as 50K to take in the opening festivities for the $2.6B project. When running at full capacity, Wynn expects to have 5.5K workers across the casino-resort complex. Wynn CEO Matthew Maddux said Encore is not a regional casino property but an asset that can attract international visitors.

FDA watch: Pdufa dates are on the calendar for Regeneron (NASDAQ:REGN)-Sanofi's (NASDAQ:SNY) Dupixent, Dova Pharmaceuticals' (NASDAQ:DOVA) Doptelet, Retrophin's (NASDAQ:RTRX) Thiola and Acer Therapeutics' (NASDAQ:ACER) Edsivo. An agency decision on Alexion Pharmaceuticals' (NASDAQ:ALXN) Soliris is also anticipated.

This Budweiser's for Asia: Budweiser Brewing Company APAC Ltd. is expected to continue to measure investor demand for a Hong Kong listing of the Asia Pacific unit of Anheuser-Busch InBev (NYSE:BUD). Sources believe the beer giant could raise as much as $5B through the IPO. Shares of BUD are up 36% YTD despite A-B facing tariff pressures and an unsteady global macro backdrop.

BMO Prescriptions for Success Healthcare Conference: Pharma, biotechs and precision medicine are all on display at the BMO event scheduled for New York City on June 25. Participants include Endologix (NASDAQ:ELGX) on June 24, Lannett (NYSE:LCI), NuVasive (NASDAQ:NUVA), MyoKardia (NASDAQ:MYOK), Trevi Therapeutics (NASDAQ:TRVI), ArQule (NASDAQ:ARQL), Moderna (NASDAQ:MRNA), Sienna Biopharmaceuticals (NASDAQ:SNNA), Tandem Diabetes Care (NASDAQ:TNDM), Arvinas (NASDAQ:ARVN), Optinose (NASDAQ:OPTN), VBI Vaccines (NASDAQ:VBIV) and Centene (NYSE:CNC).

Wells Fargo Bricks to Clicks Digital Conference: Digital leaders from traditional retailers and brands gather in New York City on June 26-27. Presenting companies include Carvana (NYSE:CVNA), Stitch Fix (NASDAQ:SFIX), Farfetch (NYSE:FTCH), Zalando (OTC:ZLDSF) and private companies such as Rent the Runway, Apptopia and Warby Parker. Former Amazon exec Rob Williams is due to give the keynote address on disruptive innovation.

Production crunch: Tesla (NASDAQ:TSLA) faces increased pressure to maintain Elon Musk's goal of producing 1K Model 3 vehicles a day and set a quarterly record in Q2 as reports indicate that deliveries may fall just short of the targeted range of 33K to 36K vehicles. It wouldn't be a shocker if the expected Q2 deliveries tally is leaked before the end of the week.

Data watch: RV shipments data is due out next week from the RV Industry Association. Potential movers in the RV sector include Thor Industries (NYSE:THO), Winnebago (NYSE:WGO), Camping World (NYSE:CWH), Patrick Industries (NASDAQ:PATK) and LCI Industries (NYSE:LCII).

Hotel Taco Bell: The power of a strong brand will be on display when Yum Brands' (NYSE:YUM) The Bell: A Taco Bell Hotel and Resort starts taking reservations on June 27 for the taco-inspired destination in Palm Springs, California. When the hotel officially opens in August, guests will be served up Taco Bell's version of a poolside resort menu in addition to exclusive Taco Bell menu items that will make their debut at The Bell.

Stock splits: Puma SE (OTCPK:PUMSY, OTCPK:PMMAF) is expected to split shares at a 1-for-10 ratio on June 24. SoftBank Group (OTCPK:SFTBY) has a 2-for-1 split scheduled to be effective on June 28.

Business call: Arcus Biosciences (NYSE:RCUS) is hosting a conference call on June 25 to provide a mid-year update on its clinical and preclinical programs.

Box office: Disney (NYSE:DIS) is expected to haul in over $150M from the opening of Toy Story 4 this weekend at over 4.5K theaters in the U.S. The Pixar film is drawing positive reviews in many global markets, including China.

Barron's mentions: Boeing (NYSE:BA) is profiled after "passing" the Paris Air Show test. The aerospace giant is expected to have the time to make MAX fixes and for the stock to recover. Marriott International (NASDAQ:MAR) is singled out as a hotel stock with upside, trading below historical levels at about 22X this year’s expected earnings and below Hilton’s 25X ratio. The bullish case for Humana (NYSE:HUM) is centered on the company's government-sponsored Medicare Advantage program. In the fitness sector, Planet Fitness (NYSE:PLNT) and privately-owned Peloton (PTON) are said to be lapping Nautilus (NYSE:NLS) and Town Sports International (NASDAQ:CLUB). On the M&A front, Callaway Golf (NYSE:ELY) is mentioned as a company that could be on the auction block.

Sources: CNBC, Nasdaq, EDGAR, Barron's, Boston Globe, Bloomberg,