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 earnings season starts off with major banks reporting next week along with PepsiCo (NASDAQ:PEP) and Delta Air Lines. Analysts expect profits for the first quarter to be up 24.2%, led by huge gains in the consumer discretionary sector against the pandemic comparable a year ago. Last quarter, about 80% of companies beat earnings estimates in Q4, but only 42% saw a share price increase on earnings day. The week ahead will be busy on the economic front as well, with the Fed's Beige Book, the Empire State Manufacturing Index report, industrial production data and the retail sales report all due in. Meanwhile, the IPO market heats up with self-driving truck startup TuSimple (TSP) and digital banking platform Alkami Technology (NASDAQ:ALKT) both expected to start trading. In the crypto world, all eyes will be watching closely how the direct listing of Coinbase (NASDAQ:COIN) on April 14 goes down with investors.
Earnings spotlight: The financial sector will lead out the start of the Q2 earnings season kicked off next week. The list of reporting companies includes Aphria (APHA) on April 12; Fastenal (NASDAQ:FAST) on April 13; JPMorgan Chase (JMP), Wells Fargo (NYSE:WFC), Goldman Sachs (GS), Progressive (NYSE:PGR), Bed Bath & Beyond (BBBY) on April 14; UnitedHealth (UNH), Bank of America (NYSE:BAC), Citigroup (NYSE:C), PepsiCo (PEP), Rite Aid (RAD), BlackRock (NYSE:BLK) and Delta Air Lines (NYSE:DAL) on April 15 and Morgan Stanley (MS), PNC (NYSE:PNC), BNY Mellon (NYSE:BNY) and Ally Financial (NYSE:ALLY) on April 16.
IPO watch: Alkami Technology (ALKT), AppLovin (APP), TuSimple (TSP) and Karat Packaging (KRT) are expected to start trading next week. Quiet periods expire on Duckhorn Portfolio (NYSE:NAPA), Olo (OLO), Sun Country Airlines (SNCY), Tuya (TUYA), Vine Energy (VEI), Connect BioPharm (NASDAQ:CNTB) and Finch Therapeutics (FNCH) next week. Sun Country may be the most interesting of the bunch to watch. The airline stock trades more than 50% over its IPO pricing level, but industry booking trends have started to heat up.
Coinbase preview: Coinbase (COINB) is expected to start trading on April 14. Ahead of the direct listing, the company reported Q1 revenue of about $1.8B vs. $191M a year ago. Coinbase also said it has 56M verified users. Trading on the private market has valued Coinbase at about $68B or $100B after factoring in a fully-diluted share count. D.A. Davidson is already on the books with a price target on Coinbase of $440.
Projected dividend increases (quarterly): The list of companies expected to increase their dividend payouts includes Costco (COST) to $0.75 from $0.70, AptarGroup (ATR) to $0.38 from $0.36, Johnson & Johnson (NYSE:JNJ) to $1.06 from $1.01, Parker-Hannifin (NYSE:PH) to $0.91 from $0.88, Healthcare Services Group (HCSG) to $0.2075 from $0.20625.
M&A tidbits: The tender offer on the Michaels (NASDAQ:MIK) buyout by Apollo Global Management expires on April 12. Shareholders with Inphi (IPHI) and Marvell Technologies (MRVL) are scheduled to vote on April 15 on their proposed merger. Tilray (NASDAQ:TLRY) hosts a special meeting on April 16 to vote on the proposed merger with Aphria (APHA) on April 16.
Corporate spotlight: Major events next week include Nvidia's (NVDA) GTC21 Conference and investor day event on April 12. Bank of America sees potential upside for Nvidia if it provides updates on Arm servers. Also on April 12, Signet Jewelers (NYSE:SIG) holds a virtual Investor Day event. KKR (NYSE:KKR) holds a virtual investor day on April 13 and Howard Hughes (HHC) has its annual investor day scheduled for April 14. Franco-Nevada (FNV) and REV Group (NYSE:REVG) will be in the spotlight on April 15 with investor events. Check out Seeking Alpha's Catalyst Watch for a detailed list of events to watch.
Conferences rundown: Notable conferences running during the week include the Needham Healthcare Conference, the GPU Technology Conference, the Denver World Gold Forum and the Canaccord Genuity Horizons in Oncology Virtual Conference. Check out Seeking Alpha's Catalyst Watch for a detailed list of events to watch.
Numbers of note: Data reports due out during the week include updates from Caterpillar (NYSE:CAT) on machine sales and Boeing (NYSE:BA) on deliveries. Broker assets under management reports also expected in from Lazard (LAZ), Invesco (IVZ). T. Rowe Price (TROW), Franklin Resources and others. Preliminary North America printing & writing statistics for March from the Pulp & Paper Products Council is also expected out next week in a development of interest to Domtar (UFS) and International Paper (NYSE:IP).
Early Tech earnings picks: Wedbush Securities singles out three tech companies as top picks into the earnings season: (1) Apple (NASDAQ:AAPL) - "While the Street is forecasting roughly 220 million iPhone units for FY21, we believe based on this current trajectory and in a bull case Cupertino still has potential to sell north of 240 million units (~250 million could be in the cards - an eye popping figure) which would easily eclipse the previous Apple record of 231 million units sold in FY15"; (2) Nuance (NUAN) - "We believe Nuance overall continues to be laser focused on building a global cloud healthcare and AI driven business with growing ARR and a sustainable revenue/ earnings stream going forward with larger deals in the field as more hospital- wide deployments shift to the cloud are playing out and gaining further momentum based on our checks. For the March quarter we believe the cloud healthcare pipeline and deal flow conversion appear to be robust as more hospitals look to deploy these solutions especially as the focus on cloud, security, and sharing healthcare data is becoming more front and center in this digital transformation era"; (3) Microsoft (NASDAQ:MSFT) - "Azure gaining share in cloud arms race. Based on our recent field checks for the March quarter, we strongly believe the tide is shifting in the cloud arms race as Microsoft coming off its recent 50% Azure growth number is taking market share vs. AWS (28% YoY growth this past quarter) based on our analysis."
Barron's mentions: Bitcoin (BTC-USD) gets the once over by the publication this week. "Even if Bitcoin doesn’t take off as a transaction currency, it could gain appeal as an alternative asset," notes Daren Fonda in something of a beginners guide to the cryptocurrency. By JPMorgan's reckoning, Bitcoin is valued at $146,000 if the digital gold is valued in relation to the total physical gold held by the private sector. There is a warning this week on cruise line stocks Carnival (NYSE:CCL), Royal Caribbean (NYSE:RCL) and Norwegian Cruise Line Holdings (NYSE:NCLH) due to the necessary debt and equity raises to ride out the pandemic. "They will cut into investor returns because of higher interest expenses and a sharp increase in shares outstanding," notes the publication.
Sources: EDGAR, Bloomberg, CNBC, The Verge, Renaissance Capital
This article was written by