Stocks To Watch: Netflix, Cisco And Chewy On The Marquee

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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, Apple Podcasts, Stitcher and Spotify (click the highlighted links).

The week ahead sees the Federal Open Market Committee hold another two-day meeting. No interest rate change is expected, but the tone from Jerome Powell's presser could still influence trading. Economic reports due out include updates on retail sales, producer prices and consumer prices. Across the pond, a policy decision from the European Central Bank and general election in the U.K. will be significant. Expect a lot of focus at the end of the week on those pesky tariffs due to be implemented on December 15. On the corporate side of things, it's the tale of two retailers set to spill numbers. Lululemon (LULU) is forecast to report a 14% jump in same-store sales for Q3, while GameStop (GME) is seen reporting a 14% drop.

Notable earnings reports: Casey's General Stores (CASY), Chewy (CHWY), MongoDB (MDB), Stitch Fix (SFIX), Toll Brothers (TOL), Vail Resorts (MTN) on December 9; AutoZone (AZO), Dave & Buster's (PLAY) and GameStop (GME) on December 10; American Eagle Outfitters (AEO), Lululemon (LULU) and Tailored Brands (TLRD) on December 11; Adobe (ADBE), Broadcom (AVGO), Costco (COST) and Oracle (ORCL) on December 12.
Go deeper: See Seeking Alpha's complete list of earnings reporters.

IPO watch: XP (XP) is expected to price its $2B IPO on December 10 and Bill Holdings (BILL) is scheduled to price its IPO on December 11. Both OneConnect Financial Technology (OCFT) and Sprout Social (SPT) will price their IPOs on December 12. The analyst quiet period ends on YayYo (OTC:YAYO) on December 9, while IPO share lockup periods expire on CrowdStrike (CRWD) and Mohawk Group (MWK) on December 9, as well as Fiverr (FVRR) on December 10 and Chewy (CHWY) on December 11. Keep an eye on CrowdStrike in particular, with shares up more than 50% from the level where the IPO was priced.
Go deeper: Catch up on all the latest IPO news.

Projected dividend changes: Abbott (ABT) to $0.35 from $0.32, AES (AES) to $0.1425 from $0.1365, American Tower (AMT) to $1.01 from $0.95, Broadcom (AVGO) to $3.05 from $2.65, Franklin Resources (BEN) to $0.28 from $0.26, CenterPoint Energy (CNP) to $0.30 from $0.2875, Dominion Energy (D) to $0.94 from $0.9175, Edison International (EIX) to $0.63 from $0.6125, Fortune Brands (FBHS) to $0.24 from $0.22, Realty Income (O) to $0.2275 from $0.227, Pfizer (PFE) to $0.38 from $0.36, Pentair (PNR) to $0.185 from $0.18, Ventas (VTR) to $0.795 from $0.7925, Zoetis (ZTS) to $0.189 from $0.164, Albany International (AIN) to $0.19 from $0.18, Balchem (BCPC) to $0.52c from $0.47, CoreSite Realty (COR) to $1.30 from $1.22, Ensign Group (ENSG) to $0.05 from $0.475, Essential Properties (EPRT) to $0.23 from $0.22, Park Hotels (PK) to $0.70c from $0.45, SEI (SEIC) to $0.35 from $0.33, Urstadt Biddle (UBA) to $0.28 from $0.275, WD-40 (WDFC) to $0.65 from $0.61, Kering (OTCPK:PPRUF) to €4.00 from €3.50 (interim).
Go deeper: Read the latest dividend analysis.

M&A tidbits: The go-shop period on the deal Tech Data Corporation (TECD)-Apollo Global Management (APO) deal expires on December 9. Closings are set for the Vitamin Shoppe (VSI) buyout by Franchise Group on December 11 and Fibrocell Science (FCSC) buyout by Castle Creek on December 13. M&A talk could continue to swirl around Allakos (ALLK), Axalta (AXTA), Shopify (SHOP) and Premier Inc. (PINC).

Spotlight on space: Will declining launch costs, advances in technology and rising public-sector interest position space exploration as the next trillion-dollar industry? That's a question that is likely to be bandied around at the Morgan Stanley 2nd Annual Space Summit on December 10. The summit will bring together experts from Morgan Stanley Research, private and public firms, space investors and other space experts. Registered participants include HawkEye 360, Intelsat (I), Maxar (MAXR), Parsons, Planet, Rocket Lab, ViaSat (VSAT) and others - while bigger players like SpaceX (SPACE), Virgin Galactic (SPCE), Boeing (BA), Northrup Grumman (NOC) and Lockheed Martin (LMT) will also be in focus. Looking ahead on the space calendar, SpaceX is scheduled to fly another Falcon 9 in the second half of December. Boeing is scheduled to launch its Starliner capsule atop United Launch Alliance's Atlas V rocket from Launch Complex 41 to the International Space Station on December 19.

Analyst and investor day events: A large number of companies will be hosting events this week, headlines by Home Depot (HD) on December 11 (see full preview below). The list also includes B2Gold Corp. (BTG) on December 9; (ENB) on December 10; Quaker Chemical (KWR), Omnicell (OMCL) and LendingTree (TREE) on December 11; Albemarle (ALB), MetLife (MET), Enphase Energy (ENPH), Timken (TKR) and Delta Air Lines (DAL) on December 12; AGCO (AGCO), Centene (CNC) and Alector (ALEC) on December 13.

Spotlight on Home Depot: Home Depot (HD) heads into its analyst update next week with expectations running somewhat low. Wedbush thinks the home improvement retailer is likely to cut its 2020 revenue outlook amid recent disappointments in near-term guidance and cyclical pressures. Credit Suisse is of a similar mind. "We expect a generally positive tone, but after an overly aggressive outlook provided last year, a reset seems needed and a return to a more conservative stance makes sense; HD has a long track record of under-promising/over-delivering, which has served it well," previews the firm on the event. Home Depot heads into the event needing to generate comparable sales growth of 5% to 9% in 2020 to meet its three-year target set in 2020. Shares of Home Depot are up 25% YTD.

Boeing: The head of the Federal Aviation Administration will testify December 11 in front of a U.S. House panel regarding the status of the agency review of the grounded Boeing 737 MAX. FAA Administrator Stephen Dickson stated a few weeks ago that the FAA will handle the review of the ~300 Max jets built since the grounding. Boeing still needs to complete a software audit and schedule a key certification test flight before the plane can be ungrounded by the FAA.

Drug prices: A drug prices bill sponsored by Democrats is expected to be passed in the House next week, although it's very unlikely to pass the Senate. While a bipartisan bill from the Senate Finance Committee would impact prices on 2% of all drug sales and the Trump Administration's plan would hit about 3% of sales, the House bill being floated would apply to the entire U.S. market. Biopharma majors to watch next week as the Congressional wrangling continues include Pfizer (PFE), Merck (MRK), Bristol-Myers Squibb (BMY), Novartis (NVS), Roche (OTCQX:RHHBY), Johnson & Johnson (JNJ), Eli Lilly (LLY), GlaxoSmithKline (GSK), AstraZeneca (AZN), Amgen (AMGN) Biogen (BIIB), Gilead Sciences (GILD), Teva Pharmaceutical Industries (TEVA), Takeda (TAK), AbbVie (ABBV) and Bausch Health Companies (BHC)

Business update: Cisco (CSCO) says it will unveil innovations for the "Future of the Internet" at an event on December 11. Cisco Chairman/CEO Chuck Robbins and members of Cisco's leadership team will share their vision for the future Internet and what it can help organizations around the world achieve. Ionis Pharmaceuticals (IONS) will host a webcast on December 13th to take a deep dive into antisense technology, Ionis' proprietary RNA-targeted drug discovery platform. The two-hour webcast will include presentations from Ionis' key architects and pioneers of RNA-targeted therapeutics. ArQule (ARQL) will present final clinical data from the company-sponsored phase 1 study of ARQ 531 on December 9. MacroGenics (MGNX) has a conference call to discuss Flotetuzumab at ASH.

UBS Global TMT Conference: Plenty of heavy-hitting tech, media and telcomm players will be in New York City on December 9-10 for the UBS conference. The list of speakers includes ViacomCBS (VIAC) CEO Bob Bakish, AT&T (T) CEO Randall Stephenson and Charter (CHTR) CEO Tom Rutledge. Netflix (NFLX) Chief Content Officer Ted Sarandos could break some news and Peloton Interactive CEO John Foley (PTON) will look to spin the advertising story on the company in a positive way. Other TMT players due to present include DocuSign (DOCU), MDC Partners (MDCA), World Wrestling Entertainment (WWE), Zscaler (ZS), Sierra Wireless (SWIR), (MTCH), Zix (ZIXI), RealReal (REAL), Western Digital (WDC), K12 (LRN), AMC Networks (AMCX), TiVo (TIVO), Verizon (VZ), T-Mobile (TMUS), Microsoft (MSFT), News Corp (NWS), and Fiverr (FVRR).

Barclays Global Technology, Media and Telecommunications Conference: The conference runs in San Francisco from December 11-12. Companies due to appear include Tenable (TENB), Five9 (FIVN), LivePerson (LPSN), NXP Semiconductors (NXPI), Paycom (PAYC), Nvidia (NVDA), Revolve (RVLV), TI (TXN), Elastic (ESTC), Black Knight (BKI), VMWare (VMW), Mimecast (MIME), Skyworks (SWKS), IAC(IAC), Pinterest (PINS), GoDaddy (GDDY) and AT&T (T).

Golden Globes: The Hollywood Foreign Press Association will announce this year's Globe award nominations on December 9. Netflix (NFLX) could have a good day, with three films (The Irishman, Marriage Story and The Two Popes) in the mix for best motion picture. Sony (SNE) is also expected to do well with Quentin Tarantino's Once Upon a Time, while Warner Bros. (T) could see either Joker and Just Mercy make the cut.

Deutsche Bank 2019 AutoTech Conference: Deutsche Bank 2019 AutoTech Conference in San Francisco, Calif., on Tuesday, Dec. 10. Ford (F) exec Marion Harris will discuss how the automaker is leveraging the benefits of vehicle connectivity to improve customer experience, company fitness and strength of its commercial vehicle services. On the tech side, participants include Nvidia (NVDA), Ambarella (AMBA) and NXP Semiconductors (NXPI).

Focus on financials: The Goldman Sachs US Financial Services Conference runs from December 10-11 in New York City. Companies making the trip include Aflac (AFL), American International Group (AIG), AssetMark Financial (AMK), Ares Management (ARES), American Express (AXP), Blackstone (BX), Citigroup (C), Citizens Financial Group (CFG), Comerica (CMA), CME Group (CME), Evercore (EVR), JPMorgan (JPM), KeyCorp (KEY), Moelis (MC), Nasdaq (NDAQ), PNC Financial (PNC), Prudential Financial (PRU), T. Rowe Group (TROW), Tradeweb Markets (TW), Wells Fargo (WFC), Zions Bancorporation (ZION), Allstate (ALL), AssetMark Financial (AMK), Apollo Global Management (APO), Athene Holding (ATH), Bank of America (BAC), Black Rock (BLK), Carlyle (CG), AXA Equitable (EQH), First Horizon National (FHN) First Republic Bank (FRC), Huntington Bancshares (HBAN), Intercontinental Exchange (ICE), KKR (KKR), Northern Trust (NTRS), U.S. Bancorp (USB) and Victory Capital (VCTR).

Next-gen meat: Keep an eye on Calyxt (CLXT) with the small plant-based tech company due to present at the Jefferies Alternative Protein Summit on December 10 in New York City. Calyxt CEO Jim Blome will be discussing the path ahead. You have to think Beyond Meat (BYND) and Impossible Foods (IMPSBL) will be mentioned once or twice at the event.

Barron's mentions: A potential breakout in small cap stocks is the subject of the cover story this week. Darling Ingredients (DAR), Compass Diversified Holdings (CODI), Qualys (QLYS),Lincoln Electric Holdings (LECO) and Hannon Armstrong Sustainable Infrastructure Capital (HASI) are singled out on the stocks side, while Vanguard Small Cap Index (VSMAX), Royce Special Equity (RYSEX) and Janus Henderson Small Cap Value (JSCVX) are highlighted on the fund side. Expedia (EXPE) remains a solid enterprise, with its core business—hotel bookings—growing 10% this year Expedia trades at 15.4 times forward four-quarter estimates, a wide discount to its historical average of more than 20 times, and to the S&P 500 index overall. Finally, Macy's (M) is described as a work still in progress. The department store chain's long-term debt of $4.7B and long-term lease liabilities of $2.8B are seen as tough obstacles for a full recovery in share price.

Sources: CNBC, Reuters, Bloomberg, The Economist

This article was written by

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Our news team's weekend preview of upcoming IPOs, earnings reports, conference presentations, investor days, IPO lockup expirations, FDA decisions, Barron's mentions, and other key events that could impact stocks.

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