Stocks To Watch: Buzz On Vroom, Lululemon, GameStop And Sports Betting Plays

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).

Fed Reserve Chairman Jerome Powell will be in the spotlight next week when the Federal Open Market Committee meets on June 9-10. Powell is expected to face questions on the central bank's role in the economic recovery and what tools are still available to use. "We think right now they’re just trying to get this Main Street lending program to work. The question is are they going to do more things around what they do in terms of forward guidance and next steps of macro easing," previews Bank of America economist Ethan Harris. On the economic front, reports on consumer prices, producer prices and consumer sentiment will be watched closely. The weekly jobless claims numbers due out on June 11 will be crucial for sentiment after May’s employment report showed a surprising record gain of 2.5M jobs. On the corporate side of things, Lululemon (LULU) reports earnings with shares sitting near their all-time high and a board battle at GameStop (GME) goes to a vote.

---

Earnings spotlight: REV Group (REVG) and Stitch Fix (SFIX) on June 8; Signet Jewelers (SIG), AMC Entertainment (AMC), Chewy (CHWY), Five Below (FIVE) and GameStop on June 9; Guess (GES) and Red Robin Gourmet Burgers (RRGB) on June 10; Adobe (ADBE), Dave & Buster's Entertainment (PLAY) and Lululemon on June 11.
Go deeper: See Seeking Alpha's complete list of earnings reporters

IPO watch: Online car seller Vroom (VRM) is offering about 18.8M shares in an expected range of $17 to $19. The timing for the IPO is intriguing with the pandemic leading to more online shopping for cars, but sales and margins under pressure. How well the Vroom IPO is received by investors could be of interest to Carvana (CVNA), Cars.com (CARS), TrueCar (TRUE), AutoNation (AN) and even Tesla (TSLA) as the concept of online car shopping heads more mainstream. Vroom is expected to have a market capitalization of around $1.92B if it prices at the higher end of the indicated range. Across the Pacific, Chinese gaming company NetEase (NTES) is looking to raise $1.2B in a Hong Kong listing to fund strategies for international expansion. Shares are expected to start trading on June 11. Also in the IPO world, the quiet period expires for ADC Therapeutics (ADCT) on June 9 and IPO share lockups end on XP (XP), Bill Holdings (BILL), OneConnect Financial (OCFT) and Sprout Social (SPT) later in the week. There are also secondary offering lockup expirations on Tilray (TLRY) and BlackRock (BLK) to keep an eye on.
Go deeper: Catch up on all the latest IPO news.

M&A tidbits: Gaming officials in New Jersey meet to discuss the Caesars Entertainment (CZR)-Eldorado Resorts (ERI) merger. The tender offer on the Menarini Group pickup of Stemline Therapeutics (STML) is also due to expire. Keep an eye on Western Union (WU) and MoneyGram International (MGI) for reports on if the companies are in talks and expect a little more drama around the Tiffany (TIF)-LVMH (OTCPK:LVMHF) merger.

Projected dividend changes (quarterly): W.R. Berkley (WRB) to $0.12 from $0.11, Casey's General Stores (CASY) to $0.34 from $0.32, National Fuel Gas (NFG) to $0.445 from $0.435, Realty Income (O) to $0.2330 (monthly), Urstadt Biddle (UBA) to $0.14 from $0.28.

Spotlight on Snap: Snap (SNAP) has its partner summit event scheduled for June 11. The virtual event will feature a keynote address by Snap co-founders Evan Spiegel and Bobby Murphy, as well as talks from other team members from across the company. New product features and partnerships will be announced around Snap's augmented reality offerings and a stripped-down version of its platform that partners can embed in their own apps is expected to be unveiled. Developers are expected to be able to use a toolkit provided by Snap to build a Snapchat-like mini-app right in their own websites. The Snap event takes place with the company under a brighter spotlight for how it curates its promoted content on the Discover page. Heading into the summit, shares of Snap are up more than 50% over the last 90 days.

Airlines: How high can the airline sector fly? After a series of reports on improved bookings trends, airline stocks are showing positive momentum. American Airlines (AAL) paced the sector with a 77% gain last week, while Spirit Airlines (SAVE) +75%, JetBlue (JBLU) +36%, Delta Air Lines (DAL) +36%, Hawaiian Holdings (HA) +34% and SkyWest (SKYW) +33% also reeled off big gains. Traffic reports for May are due out next week, which could include more market-moving metric updates.

Healthcare watch: At ENDO Online, OPKO Health (OPK) is due to present data on Somatrogon on June 8 and Neurocrine Biosciences (NBIX) will present on Crinecerfont. Virtual presentations scheduled for the European Hematology Association conference starting on June 11 include bluebird bio (BLUE) on LentiGlobin data, Merus (MRUS) on MCLA-117, Altex Industries (OTCQB:ALTX) on Nomacopan, Vertex Pharmaceuticals (VRTX) on CTX001, AstraZeneca (AZN) on AZD1222 and Agios Pharmaceuticals (AGIO) on AG-348.

Analyst meetings and business updates: Equifax (EFX) has an investor update scheduled for June 8. Intel (INTC) CEO Bob Swan will talk ESG in a discussion with JUST Capital on June 8 and Ericsson (ERIC) has a business update call scheduled for June 9 covering networks and digital services. Avery Dennison (AVY) has a conference call scheduled with R.W. Baird on June 9. Salesforce.com (CRM) cloud exec Mike Micucci is participating in the Citi Virtual Software Bus Tour on June 10. Finally, Overstock.com (OSTK) has an Investor Day scheduled for June 10 and Centene (CNC) has a Virtual Investor Day presentation scheduled for June 12.

Conferences rundown: Cowen hosts a conference covering the "New Retail Ecosystem" with virtual presentations from Vince Holdings (VNCE), Lands' End (LE) and Macy's (M). Also next week, William Blair has a growth stock conference with online talks by execs from a long list of companies, including Pluralsight (PS), Appian (APPN), TransUnion (TRU), Arista Networks (ANET), CyberArk Software (CYBR), QAD (QADA), Talend (TLND), Workday (WDAY), SmileDirectClub (SDC), DocuSign (DOCU), Chewy (CHWY), Zendesk (ZEN) and Varonis Systems (VRNS). The hodge-podge list of companies due to participate at the Stifel 2020 Virtual Cross Sector Insight Conference include Starbucks (SBUX), Donaldson (DCI), HubSpot (HUBS), S&P Global (SPGI), Autodesk (ADSK), Archer-Daniels-Midland (ADM), MasTec (MTZ), Lindsay (LNN), Dycom Industries (DY) and Cronos (CRON). Meanwhile, the Deutsche Bank 11th Annual Virtual Global Industrials & Materials Summit 2020 will also run next week with presentations ranging from airline companies, paper producers, construction concerns to home builders. Appearances are expected from MYR Goup (MYRG), WillScot (WSC), Berry Global (BERY), Builders FirstSource (BLDR), Cabot Corp. (CBT), Canadian Pacific (CP), Clearwater (CLW), Crown Holdings (CCK), AMETEK (AME), ArcelorMittal (MT), Ahland Global (ASH), AXTA, Delta Air Lines (DAL), Dow Inc. (DOW), Fluor (FLR), Garrett Motion (GTX), Rio Tinto (RIO), Saia (SAIA), Silgan Holdings (SLGN), Sonoco Products (SON), Summit Materials (SUM), Target Hospitality (TH), Vulcan Materials (VMC), Westlake Chemical (WLK), XPO Logistics (XPO), Meritor (MTOR), nVent Electric (NVT), Peabody Energy (BTU), PPG Industries (PPG), PQ Group (PQG), REVG, Alcoa (AA), Rexnord Corp. (RXN), Canadian National (CNI), CSX Corporation (CSX), Union Pacific (UNP), Kansas City Southern (KSU), Honeywell (HON), Ball Corporation (BLL) and O-I Glass (OI).

Eating out: The week ahead will see the eat-at-home vs. restaurants trade be hashed around again. Nielsen data could show a deceleration in the stockpiling benefits for Campbell Soup (CPB), J.M. Smucker (SJM), B&G Foods (BGS), Blue Apron (APRN), Hain Celestial (HAIN) and General Mills (GIS) - while restaurant stocks like Cracker Barrel (CBRL), Denny's (DENN), Dine Brands Global (DIN), Brinker International (EAT) and Red Robin Gourmet Burgers (RRGB) will look to scrap back from their YTD losses with more people eating out.

Notable annual meetings: GameStop may generate the most drama of the annual meetings next week with the company's board up for re-election. Two proxy firms are backing candidates from stakeholders Hestia Capital and Permit Capital for board inclusion, while Michael Burry's Scion Asset management is voting in favor of the board's slate. The annual shareholder meeting arrives with shares of GameStop down 32% YTD. Other annual meetings to watch this week include MercadoLibre (MELI), SeaWorld Entertainment (SEAS), Shake Shack (SHAK), Target (TGT), Wingstop (WING), TJX Companies (TJX), Mattel (MAT), Nvidia (NVDA), Best Buy (BBY) and Dollar Tree (DLTR).

Betting on betting: The brand-new Roundhill Sports Betting & iGaming ETF (BETZ) heads into its first full week of trading just ahead of the re-emergence of major sports in the months ahead. The Roundhill Sports Betting & iGaming ETF is designed to offer retail and institutional investors exposure to sports betting and iGaming industries. Holdings include DraftKings (DKNG), Flutter Entertainment (OTCPK:PDYPY), Penn National Gaming (PENN), William Hill (OTCPK:WIMHF), Scientific Games (SGMS), GAN (GAN), Churchill Downs (CHDN) and PointsBet (OTCQX:PBTHF).

Barron's mentions: Twitter (TWTR) makes the cover this week with the company in the middle of the political firestorm. For investors, the bigger issue than the culture debate is that the stock is valued at a sales multiple lower than social media peers. Food suppliers Sysco (SYY), US Food Holdings (USFD) and Performance Food Group (PFGC) are recommended with sales volume slowly recovering. The publication notes that large investors like KKR and Trian Fund Management are taking an interest in the sector. There is also a reminder that COVID-19 drug trials are progressing. Eli Lilly (LLY) is testing its antibody in a Phase 1 trial. Regeneron Pharmaceuticals (REGN) is also set to begin testing this month, while a collaboration between Vir Biotechnology (VIR) and GlaxoSmithKline (GSK) will begin trials later this summer. If the trial results are positive and the pandemic remains intense, emergency authorization of some of the drugs could follow.

Sources: Bloomberg, Reuters, CNBC, BioPharmCatalyst, EDGAR

Comments

[pat45]

this market is in total euphoria stage...don't know when but we will have serious down soon...but then again the fed may give us another 10 trillion you know Trump wants market up to ensure his election.

[MAG24]

Ohhhh...and don’t forget the jobs numbers put out by the government this week were WRONG! Eve. They have admitted it! We are over 16%!! Complete HS!!!

[nunccoepi]

Marijuana is in the future and it starts now. We need to just legalize it in all States for recreational use. It's going to happen but the question is when. GTBIF is positioned well for an upward push. Well organized group.

[cantwin]

dont do it yet...to many dogs in fight right now......you may get lucky but its a long shot...most companies are lying.....played with PHOT about 5 years ago....made a good hit then reinvested again lost my butt...be careful

[GameBuzz]

Yes, drivers on pot have even faster response times than NASCAR drivers, while surgeons, cops, firefighters, soldiers and air traffic controllers all think much faster and clearer when stoned as well.

[twhite113]

No mention of the Goldman Healthcare virtual conference next week? Is that because it's second tier?

[johnsoriaknows]

Several of my picks will have a stellar rest of June starting Monday because of powerful near-term catalysts. Here is actionable information on most of them:

seekingalpha.com/...

Good luck!!

[User 16582472]

I wouldn't normally pile into a gaming ETF, but when you look under the hood of BETZ, it gives you exposure to some foreign companies not listed in the US that look quite interesting.

[kellan hardisty]

if u like ddog whats ur thoughts on ayx

[brainleft]

eating out = syy.
no touch contracts =docu
no touch health = tdoc
smart phone addiction = amt
protect the flag and our freedom =lmt/gd

[AlieGee]

SYY= quality

[Careful Investor]

Instead of TDOC which has 100's of competitors, look at CHANGE (CHNG) which is the arms merchant for all of them

[WWG1_WGA_Q]

OPEC & its oil-producing allies agreed today to extend the 9.7 bpd production cut through July. In the past months the U.S. production has fallen off, but you can rest assured that since crude oil is moving higher, the U.S. production will undoubtedly tick back up. Once the price of oil gets near $45 barrel, the drilling production will start increasing. I live near the N. Dakota_Montana Baaken oil fields & they're just waiting patiently for the sign to start drilling again. Many good jobs were temporarily lost due to the current situation & now those temporarily unemployed roughnecks will be hired back soon. Mr. Hamm & his Continental Resources Co. will be delighted. Plus the business's in the surrounding areas will be doing likewise. More economic recovery to add to the 'new bullish' Markets, which is recovering from the shortest 'bear' Market. Markets will be jumping higher next week, continuing the move higher in my humble opinion.

[Rdikhanov]

What stocks do you recommend to buy? (Drilling )

[WWG1_WGA_Q]

@Rdikhanov As for me , I'm not buying more shrs at this time in my energy sector portfolio, as the price of oil is recovering at this time driving up the shrs of energy related stocks. Will wait for the next catalyst that drives them back down, as you never know what will likely happen in these volatile times. But I can inform you of the ones that I hold a modest amount of shrs in my portfolio of energy stocks & you can get an idea. I like refiner = VLO, debt 44.36 & ROE 11.11 - 'Energy Majors' = COP, debt 42.58 & ROE 21.49 - PSX, debt 47.22 & ROE 12.56 - my final holding is EOG, debt 23.92 & ROE 13.34... Cheers.

[cantwin]

mutual funds have done me very well...they are easy to get info on and you are very diversified. Got into T Rowe Price Growth stock fund and have done very good

[User 16582472]

Why be diversified when you can focus on sectors that make money?

[cachinga]

UBA, hope the decrease is only temporary. Getting tired of this.

[marpy]

Kind of useless! You get an e mail due to stocks on your watch list and then you are expected to go on a fishing expedition to find ant info on them. No Thanks!!

[johnfairplay]

Life is hard.

[Mayo Man]

First world problem

[GameBuzz]

This is why God created the “search” function in browsers.

[Mr.BuyHighSellLow]

DOCU is my play for next week. I can see it heading past ATH

[Mayo Man]

Good man, your name says it all

[CBGKM]

Thst ETF betz looks very intriguing

[Mantequilla]

I’d love to see some Analysis on the BETZ etf. Agreed - very intriguing.

[AI STONKS]

Vrm looks like an interesting trade will be watching this one

[coach100]

Keep adding to my 200 shares of ABBV. Great dividend and pipeline of products.

[Mayo Man]

It’s one of my favorite stocks , have been accumulating for a while

[JollyGreen7]

Mind if I ask your avg price point? Have some ABBV @74 and see value. Dont know of I should add more at a higher price, or start a small position in ABT/PFE, or riskier play with LMAT/LMNX.

[johnsoriaknows]

Trinity Biotech, TRIB, is heading North as the CEO expects that the FDA will clear the company's COVID-19 antibody tests in June (per last week's CC comments). I expect the climb to accelerate going forward. Here is some info on this opportunity (could potentially a 5-bagger):

seekingalpha.com/...

Havea great weekend and stay safe!

[johnsoriaknows]

To put it in perspective, Trinity Biotech will be a significantly higher value than Co-Diagnostics, Inc., CODX, after it start selling its COVID-19 antibody tests. CODX revenues are 99% dependent on COVID-19 tests. Before this windfall it had very little revenues. TRIB is well diversified with bigger global footprint, entering COVID-19 test sales with almost $100M/ year revenues. With new COVI-19 revenues TRIB will be able to pay its deft and come out of this pandemic stronger than ever. CODX on the other hand could go back to where it came from although a bit stronger. Analysts have a $35/share target on CODX and this makes it a $1B enterprise or 30 times TRIB’s current market cap.

[Mayo Man]

Thanks for putting this together every weekend, very helpful

[SA Editor Clark Schultz]

Thank you for your feedback.

[Basit Saliu]

Zynga acquiring Peak games for $1.8 billion cash-and-stock was a big one for gaming. I would love Take-Two buy Zenimax or Embracer (nee THQ Nordic) for $4 billion cash-and-stock. The pandemic is a boom for the industry.

[WWG1_WGA_Q]

With the Fed meeting next week, I would expect them to continue supporting the economy. With that in mind, the S&P 500 will scale that psychological 3,200 level, getting ever closer to setting a new record . As for the Nasdaq Composite, you can bet it'll break a new record high, as it is just a small % away from doing so. The Bond Market appears to be signaling that the worst is over for the economy, while the Market rally is broadening, its likely we have a new "bull" Market under way. Who would've thought the Market & economy would recover so quickly? Well, I for one will enjoy the continuing ride to new highs for the DOW currently in process. Have a great weekend & coming week everyone, may we all prosper. Cheers!

[Basit Saliu]

Apple will be the first $2 trillion company.

[Mayo Man]

Same here, I’m enjoying it too. Just held tight, reinvesting any dividends, no shorting, onwards and upwards.

[WWG1_WGA_Q]

@Mayo Man you & I share the same attributes, as I've never in my 36+ yrs of being an investor, have never sold into Market moving selloff events through all those yrs. Dot.com bubble, financial crisis, BREXIT....etc. Came out every time for the better, as the recoveries & % gains always seem to outperform in such recoveries, for me any way. I carry a very diversified portfolio & for anyone who will be investing for yrs to come, falling stock prices are good news, not bad, since they enable you to buy more for less $$. The longer & further stocks fall, & the more steadily you keep buying as they drop, the more $$ you will make in the end-'if' you remain steadfast until the end. My attitude has always been, instead of fearing a bear market, I embrace it & all the opportunities that it provides for me. In many instances I buy more of my investments at lower prices & sell high at my desired price target when met & when needed, some times I 'dollar-cost average' & rebalance when needed. Much of my portfolio is on permanent autopilot, that way, by doing so, I can fight the prediction addiction, focus on my long-term financial goals & ignore the Market's crazy event driven mood swings. Enjoy the ride!!

[pgtp4]

No hotel resorts?