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).
Investors face another tough week of sizing up the economic consequences of the coronavirus outbreak that has created rippling anxiety in nearly every sector. The week ahead will see a number of investor conferences and presentations go online due to coronavirus concerns and almost certainly a wave of downward revisions to Q1 guidance. On the economic front, the latest reads on consumer prices, producer prices and consumer sentiment will be watched closely. Also of interest, OPEC will issue a monthly oil market report on March 11 and FedEx (FDX) will give its state-of-the-economy update on March 10. It won't be a shocker to hear at least some analysts pitch why long-term investors should jump into the market at bargain prices. On that note, Wedbush tech analyst Dan Ives has already set out Microsoft (MSFT), Apple (AAPL), Tesla (TSLA), Adobe (ADBE), Zscaler (ZS), Sailpoint (SAIL), Nuance (NUAN), Docusign (DOCU), Nice (NICE) and Uber (UBER) as his top picks on the theory that the coronavirus outbreak doesn't wipe out the long-term transformational bullish trends of cloud computing, 5G, EV, streaming and cyber security for the next few years. Perhaps someone has an undervalued gem of their own to share?
Notable earnings reports: Ascena Retail (ASNA), Stitch Fix (SFIX) and Greenlight Capital (GLRE) on March 9; Dick's Sporting Goods (DKS) and Korn Ferry (KFY) on March 10; United Natural Foods (UNFI) on March 11; Adobe (ADBE), Broadcom (AVGO), Dollar General (DG), Gap (GPS), Oracle (ORCL), Slack Technologies (WORK) and Ulta Beauty (ULTA) on March 12.
Go deeper: See Seeking Alpha's complete list of earnings reporters.
Spotlight on travel: While lodging, leisure and transportation stocks have been falling for six weeks on concerns over demand, selling pressure accelerated during the last week as companies started issuing earnings warnings, highlighted by Southwest Airlines (LUV) CEO Gary Kelly confirming a "precipitous decline" in bookings for the carrier. The growing list of major conference cancellations that includes Mobile World Congress, Facebook's (FB) F8 Conference, Google's (GOOGL) annual developer event, Adobe (ADBE) Summit 2020 and SWSX is expected to expand even more next week. That trend comes on top of major companies like Microsoft (MSFT), Apple (AAPL) and Amazon (AMZN) restricting business travel and an abrupt downturn in tourism in general. The eye-popping share price declines in the travel sector include Spirit Airlines (SAVE) -50%, Norwegian Cruise Line Holdings (NCLH) -48%, Eldorado Resorts (ERI) -45%, American Airlines Group (AAL) -42%, Hertz (HTZ) -40%, SeaWorld Entertainment (SEAS) -38%, MGM Resorts (MGM) -36% and United Airlines (UAL) -35%. While most analysts see the share price drops as overdone, there is also a general feeling that the coronavirus headlines haven't hit peak panic yet.
IPO watch: Imara (IMRA) is expected to price its IPO on March 11. The biotech is looking to raise up to $80M to help it develop its pipeline of drug candidates for the treatment of sickle cell disease and thalassemia. IPO share lockups expire on SmileDirectClub (SDC) and 10X Genomics (TXG) on March 10, as well as SpringWorks Therapeutics (SWTX), Satsuma Pharmaceuticals (STSA) and Alerus Financial (ALRS) on March 11. There are also quiet period expirations on Revolution Medicines (RVMD), Duos (DUOT), Huize (HUIZ) and Yunhong (ZGYHU) to track.
Go deeper: Catch up on all the latest IPO news.
Projected dividend changes (quarterly): Innovative Industrial (IIPR) to $1.30 from $1.00, Dick's Sporting Goods (DKS) to $0.325 from $0.275, TJX Companies (TJX) to $0.26 from $0.23, Applied Materials (AMAT) to $0.23 from $0.21, Dollar General (DG) to $0.35 from $0.32, Colgate-Palmolive (CL) to $0.44 from $0.43, Realty Income (O) to $0.2330 from $0.2325. Go deeper: Read the latest dividend analysis.
M&A tidbits: Shareholders with AK Steel (AKS) and Cleveland-Cliffs (CLF) are set for a merger vote on March 10. The walk date on the Mellanox Technologies (MLNX)-Nvidia (NVDA) deal is March 10. The California Public Utilities Commission is expected to make a decision on the Sprint (S)/T-Mobile (TMUS) deal by March 13. The list companies with activists getting fired up includes Big Lots (BIG), Twitter (TWTR), ViaSat (VSAT), LightInTheBox (LITB), Ring Energy (REI), Mednax (MD) and Prudential (PUK).
Analyst/investor meetings: Many companies have canceled their in-person events scheduled for next week to go with an online format for posting strategy and business updates. Farfetch (FTCH) is scheduled to host its Capital Markets Day on March 12. There are also events scheduled for Big Lots (BIG) and Hawaiian Holdings (HA) on March 9; Cerner (CERN), Wabtec (WAB) Aridis Pharmaceuticals (OTC:ARDS) on March 10; Moody's (MCO), Talos Energy (TALO) and Electrolux AB (OTCPK:ELUXF) on March 11 and both Parker Hannifin (PH) and Illinois Tool Works (ITW) on March 13
Con/Agg 2020 construction trade show: At last check, the giant Con/Agg 2020 construction trade show is still going on as planned from March 10-14 in Las Vegas. One of the highlights will be when Caterpillar CFO Andrew Bonfield participates in a fireside chat and Q&A session with institutional investors. The trade show could have a read-through that influences sentiment on names like Kaman (KAMN), Metso Corporation (OTCQX:MXCYY), Graco (GGG), John Deere (DE), Quaker Chemical (KWR), Ritchie Bros. Auctioneers (RBA), Commercial Vehicle Group (CVGI) and Manitowoc Company (MTW).
Stockpiling: The rush by consumers to buy household products could provide another boost again to retailers like Walmart (WMT), Target (TGT), Costco (COST), BJ's Wholesale Club (BJ), as well as consumer goods giants like Procter & Gamble (PG), Clorox (CLX), Colgate-Palmolive (CL) and Kimberly-Clark (KMB). Of course, Amazon (AMZN) is also in the mix to see a Q1 sales boost. Where does it end? Analysts say the stockpiling mindset could be here until summer at least.
Macau: The first anecdotal reports on March traffic at Macau casinos will come in next week. Names to watch for volatility include Wynn Macau (OTCPK:WYNMF), Wynn Resorts (WYNN), Sands China (OTCPK:SCHYY), Las Vegas Sands (LVS), MGM China (OTCPK:MCHVF), MGM Resorts (MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF), Melco Resorts & Entertainment (MLCO) and Studio City International (MSC).
Business updates: FedEx (FDX) is due to post an economic update on March 10. The shipper's forecast for 2020 U.S. and global GDP will be closely watched with the coronavirus more widespread than a month ago. Tractor Supply Company (TSCO) has a CEO Meet & Greet webcast planned for March 10.
Healthcare watch: OPKO Health (OPK) and Quest Diagnostics (DGX) are both launching coronavirus testing services next week, while Enzo Biochem (ENZ) will start taking respiratory specimens for its own in-house test. There could also be some news on the LabCorp (LH) coronavirus test that's already available. The FDA action date for Bristol-Myers Squibb's (BMY) Opdivo + Yervoy is March 10.
JPMorgan Industrials Conference: The event originally scheduled for New York City on March 10-12 is expected to now consist of online presentations. A wide variety of companies are due to give talks, including Norfolk Southern (NSC), Mercury Systems (MRCY), Canadian National Railway (CNI), Kratos (KTOS), Albemarle (ALB), Honeywell (HON), Canadian Pacific (CP), Ryder (R), Union Pacific (UNP), Cubic (CUB), 3M (MMM), Southwest Airlines (LUV), JetBlue (JBLU), LyondellBasell (LYB), Johnson Controls (JCI), CSX (CSX) and Delta Air Lines (DAL),
Barclays Global Healthcare Conference: The timing seems relevant for a healthcare conference. Companies due to be at the Barclays event in Miami from March 10-11 include BioCryst Pharmaceuticals (BCRX), Anthem (ANTM), Inter Pharma (NTEC), Regeneron (REGN), Cooper Companies (COO), Phibro Animal Health (PAHC), AMAG Pharmaceuticals (AMAG), Hologic (HOLX), Cigna (CI), Centene (CNC), Retrophin (RTRX), IGM Biosciences (IGMS), Revance (RVNC), ICON (ICLR), Evolus (EOLS), Clovis Oncology (CLVS), Spectrum Pharmaceuticals (SPPI), BioCryst (BCRX), LabCorp (LH) and Sangamo Therapeutics (SGMO), Masimo (MASI), AngioDynamics (ANGO), Molecular Templates (MTEM), Roche (OTCQX:RHHBY), AMAG Pharmaceuticals (AMAG), CVS Health (CVS), Integer Holdings (ITGR) and MeiraGTx (MGTX).
BofA Securities 2020 Consumer & Retail Technology Conference: The BofA conference scheduled for New York City on March 10 includes presentations from Dick's Sportings Goods (DKS), Sysco (SYY), Sanderson Farms (SAFM), Aramark (ARMK), Levi Strauss (LEVI) and Lowe's (LOW).
Movies on the marquee: The U.S. box office weekend tally will be closely watched to see what kind of an impact coronavirus anxiety has on traffic. Expectations are pretty low with Disney's Onward expected to rack up $45M across over 4.3K U.S. theaters. Universal's (CMCSA) The Invisible Man is forecast to churn up $14.2M and Paramount's (VIAC) Sonic the Hedgehog is seen bringing in $8.2M. As for the exhibitor sector, the last four weeks have been brutal. AMC Entertainment (AMC) is down 30% and Cinemark (CNK) is off 26%. The share price drop for Reading International (RDI) is 30%, while Marcus (MCS) is 20% lower and IMAX (IMAX) is showing a 14% decline.
Barron's mentions: The publication highlights 12 companies in the S&P 500 offering dividend yields of over 5.0% and that also look appealing on a valuation comparison. The list of dividend plays consists of Altria Group (MO), Dow (DOW), Exxon Mobil (XOM), Valero Energy (VLO), Prudential Financial (PRU), Comerica (CMA), AT&T (T), Chevron (CVX), Wells Fargo (WFC), AbbVie (ABBV), Seagate Tech (STX) and Kinder Morgan (KMI). If hedging against systemic financial risk is suddenly your thing, Barron's has a golden answer for that as well. SPDR Gold Trust (GLD), iShares Gold Trust (IAU),VanEck Vectors Gold Miners (GDX), VanEck Vectors Junior Gold Miners (GDXJ), VanEck International Investors Gold (INIVX), Fidelity Select Gold (FSAGX), Sprott Gold Equity (SGDLX), Barrick Gold (GOLD) and Newmont (NEM) are offered up as investment alternatives. Finally, CymaBay Therapeutics (CBAY) and InflaRx (IFRX) are singled out as smaller biotechs with significant upside in a volatile, risk-off environment.
Sources: CNBC, Bloomberg, Reuters, The Hollywood Reporter, South China Morning Post
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