Stocks To Watch: Eyes On CES, OPEC+ And Electric Vehicle Deliveries

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The first trading week of 2022 will include an important OPEC+ meeting, the release of the minutes from the last Federal Open Market Committee meeting and the December jobs report. Strong deliveries updates from Chinese electric vehicle makers Nio (NYSE:NIO), XPeng (XPEV), Li Auto (LI) just reported today could give EV stocks a jolt. Tesla (TSLA) is also due to update on quarterly deliveries sometime during the first few days of the month. Also watch for December traffic reports from airlines such as American Airlines Group (AAL), Delta Air Lines (DAL), United Airlines (UAL), Southwest Airlines (LUV), Spirit Airlines (SAVE) and JetBlue (JBLU). Those updates from the carriers could include new Q4 guidance to factor in the impact of Omicron and operational disruptions.

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Earnings spotlight: Wednesday - January 5 Jefferies (JEF).

Earnings spotlight: Thursday - January 6 Bed, Bath & Beyond (BBBY), Walgreen Boots Alliance (WBA), Constellation Brands (STZ), PriceSmart (PSMT) and Conagra Brands (CAG).

IPO watch: IPOs expected to start trading include Cingulate (CING), HashiCorp (HCP), Nu Holdings (NU) and Chicago Atlantic Real Estate Finance (REFI).

CES preview: One of the biggest tech conferences of the year takes place in Las Vegas from January 5-8 even as some companies pull back on their level of participation due to COVID. T-Mobile (TMUS), Amazon (AMZN), Meta (FB), Twitter (TWTR) and Pinterest (PINS) are some of the big names not conducting in-person presentations and meetings. Chipmakers will be closely watched at the tech event with AMD (NASDAQ:AMD) expected to reveal the company's next generation of Ryzen processors based on the Zen 4 architecture. The new Ryzen 5000 CPUs will be first to use AMD’s 3D chiplet technology. Meanwhile, Intel (INTC) is poised to reveal details on its multi-segment Alder Lake CPU architecture and the first line of Arc gaming GPUs. This year, CES will see an even bigger focus on auto tech with electrification and autonomous vehicle initiatives in full throttle. General Motors (NYSE:GM) is previewing its all-electric Silverado truck built off the Ultium platform and BMW will show off a new breakthrough that allows drivers to change the color of their color with the press of a button. EV charging specialist Blink Charging (BLNK) is scheduled to introduce several new products that could bring the stock may attention. Other notable auto and tech companies making an appearance include Nvidia (NVDA), Micron (MU), Lear (LEA), Velodyne (VLDR) and Luminar Technologies (LAZR). Also look for consumer giants like Walmart (WMT), CVS (CVS) Nike (NKE), Amazon (AMZN) and Best Buy (BBY) to make a splash with tech initiatives of their own to be showcased at CES.

OPEC meeting: The first OPEC+ meeting of the year takes place with Saudi Arabia and other participants mostly positive on the outlook for oil demand recovery. The producer alliance is expected to push ahead with a planned 400,000 barrels per day production increase in February. Oil prices have been under some pressure after U.S. airlines cancelled thousands of flights during the holidays due in part to COVID issues.

Corporate events: FactSet Research Systems (FDS) will host a conference call on January 5 to discuss its deal to acquire CUSIP Global Services from S&P Global for $1.925 billion in cash. On the same day, Edgewise Therapeutics (NASDAQ:EWTX) is scheduled to report the topline results from the Phase 1b clinical trial of EDG-5506 in individuals with BMD. Shares of Edgewise Therapeutics soared earlier this year after the FDA granted Fast Track designation for the treatment. On January 6, ADTRAN (ADTN) shareholders meet to vote on the deal to acquire ADVA (OTCPK:ADVOF). The deal is expected to form a global fiber networking leader with combined revenue of $1.2 billion. The merger is expected to close in the second or third quarter of 2022.

Barron's mentions: The publication dives headfirst into the semiconductor sector to start off the new year. The PHLX Semiconductor Index is noted to have almost doubled the gain of the Nasdaq Composite in 2021, but is now trading at 7.9X projected sales, which is double the historical 10-year average. After crunching the numbers on semi stocks, Micron Technology (MU), Amkor Technology (AMKR), Qorvo (QRVO), Skyworks Solutions (SWKS), Intel (INTC), Qualcomm (QCOM), Microchip (MCHP), NXP Semiconductors (NXPI) and Applied Materials (AMAT) are called out as some of the most attractive picks. Another stock catching some positive attention is Graham Holdings Company (NYSE:GHC), which is described as a small-scale version of Warren Buffett’s conglomerate and said to be an inexpensive stock in a richly valued market. GHC is seen having a potential catalyst in the spinoff of its TV business

Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital

Comments

[J2568]

Jan 28Feb 2Feb 7Feb 10Feb 15Feb 18Feb 24

[sportssam8]

2022 should be an interesting year. I expect both growth and value stocks to do well, but the high multiple large cap growth stocks will continue to be under pressure.

I am going to look into adding to my holdings in $MPW early next week, and I think I will initiate a position in $AMKR to add diversification to my portfolio.

Best of luck to all in 2022!

[AlieGee]

Best time to NOT buy penny garbage stocks is now. Don't
throw money away.

[Nukems]

@AlieGee penny stonks should only be played with fun money. like going to Vegas and throwing down a few stacks on black or red

[johnsoriaknows]

Bargains galore next week....but probably won't last long. The best time to buy however was the last week of 2021 when tax selling went up a notch.

The best bargains are probably in the biotech sector, and nanocaps in particular, which were severely and undeservedly abused in 2021 helped in the latter part of the year in part by overblown Omicron speculations/fear and also by tax selling season. I expect this sector to bounce violently starting next week. One of the stocks with greatest upside in this sector is BiolineRX (BLRX) which analysts project a 700%++ gain in 2022 because of likely drug approval and the various catalysts leading to it.

Here is more information for those curious about this opportunity:

seekingalpha.com/...

For those who like penny stocks with high upside, Synthetic Biologics (SYN) trading 40% lower than cash on hand and having a potentially monster pipeline with many near-term catalysts, it offers a potential 500%++ gain in1H 2022. Here is more information on this opportunity:

seekingalpha.com/...

In both cases technicals look horrible now but I expect a significant inflection going forward.

Happy New Year to everyone reading this and your loved ones!

[Nukems]

@johnsoriaknows I still see further downside on biotech and nanocaps before a bounce. Almost time to buy, but not yet.

[johnsoriaknows]

@Nukems Thank your for your comment. Realistically, there could be downside on most sectors, but among them you will find a few extremely undervalued plays offering a huge reward to risk ratio because of known near-term upcoming catalysts. The ones I mentioned are two of them but there are hundreds more out there....just have to do a lot of DD to uncover off-the-radar diamonds on the rough.