Stocks To Watch: Retail Heavyweights Report, Block And Moderna Events

SA Stocks To Watch profile picture
SA Stocks To Watch

Get ahead of the market by subscribing to Seeking Alpha's Stocks to Watch, a preview of key events scheduled for the coming week. The newsletter keeps you informed of the biggest stories set to make headlines, including upcoming IPOs, investor days, earnings reports and conference presentations.

Stocks to Watch subscribers can also tune in on Sundays for a curated podcast that's available on Seeking Alpha, Apple Podcasts, Stitcher and Spotify.

The retail sector will dominate the earnings calendar with Walmart (NYSE:WMT), Target (NYSE:TGT), Home Depot (NYSE:HD), Lowe's (NYSE:LOW) and Macy's (NYSE:M) all set to report. The report on retail sales is also one of the bigger economic updates expected to drop. Fedspeak picks up again in the week ahead, highlighted by Federal Reserve Chairman Jerome Powell giving a talk at a Wall Street Journal conference on May 17. Powell will take the stage, with the market anticipating a half-point interest rate hike at the June and July meetings of the Fed's policymaking committee. Block (NYSE:SQ) and Caterpillar (NYSE:CAT) will hold investor events of high interest, while Hyundai (OTCPK:HYMTF) is expected to shake things up in the electric vehicle sector with a formal announcement on a plan to build a $7B EV plant near Savannah, Georgia.

Earnings spotlight: Monday, May 16 - Tower Semi (TSEM), Take-Two Interactive (TTWO), Tencent Music (TME), and Global-E Online (GLBE).

Earnings spotlight: Tuesday, May 17 -, Walmart (WMT), Home Depot (HD), Macy's (M)

Earnings spotlight: Wednesday, May 18 - Lowe's (LOW), Analog Devices (NASDAQ:ADI), Cisco (NASDAQ:CSCO), and Target (TGT).

Earnings spotlight: Thursday, May 19 - Kohl's (NYSE:KSS), Applied Materials (AMAT), Palo Alto Networks (PANW), Ross Stores (NASDAQ:ROST) and Kohl's (KSS).

Earnings spotlight: Friday, May 20 - Deere (NYSE:DE) and Foot Locker (FL).

IPO watch: No new IPOs are expected to start trading next week. Quiet periods expire on JE Cleantech (JCSE) and Aclarion (NASDAQ:ACON) to free up analysts to post ratings. Companies rolling off their IPO lockup periods include Sono Group (NASDAQ:SEV), UserTesting (USER), E-Home (EJH), Vivakor (VIVK), Finwise (FINW), Snow Lake Resources (NASDAQ:LITM), Sweetgreen (NYSE:SG), and Advanced Human Imaging (AHI).

Projected dividend increases: Companies forecast to boost their quarterly dividend payouts include Packaging Corporation of America (PKG) to $1.20 from $1.00, Haverty Furniture (HVT) to $0.28 from $0.25, Lennox International (NYSE:LII) to $1.03 from $0.92, Ashland Global (ASH) to $0.325 from $0.300, Northrop Grumman (NOC) to $1.70 from $1.57, Leggett & Platt(NYSE:LEG) to $0.44 from $0.42, and Chubb Limited (NYSE:CB) to $0.82 from $0.80.

Corporate events: A large number of healthcare companies will be presenting drug data at the American Society of Gene & Cell Therapy Annual Meeting from May 16-19, including REGENXBIO Inc. (NASDAQ:RGNX), AVROBIO (AVRO), Athenex (ATNX), Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE), Mustang Bio (MBIO), and Fortress Biotech (NASDAQ:FBIO). Bank of America has highlighted Rocket Pharmaceuticals (RCKT) for having some key readouts and clinical updates at ASGCT. Also, within the healthcare sector, Moderna (NASDAQ:MRNA) will host its first in-person Science and Technology Day on May 17 for analysts and investors. The event will feature presentations with a focus on the company's newest advances. Also of high interest, Caterpillar (CAT) is holding its annual investor day event next week with higher demand for commodities seen adding to the company's backlog of machine orders. New Relic (NEWR) will be hosting an Analyst Day on May 18 in conjunction with FutureStack 2022, the company’s annual customer and developer conference. Other investor events on the calendar that stand out are the presentations from OneSpan (OSPN), Wingstop (NASDAQ:WING), Cowen (NASDAQ:COWN), (NASDAQ:WIX), Wabash National Corporation (WNV), EPAM Systems (NYSE:EPAM), and Flywire Corporation (NASDAQ:FLYW). Analysts think guidance resets are more than likely with next week's rush of investor events due to the shifting macroeconomic backdrop. Read more about the events next week that could impact shares prices in Seeking Alpha's Catalyst Watch.

Conference schedule: The conference schedule is headlined by the J.P. Morgan Homebuilding and Building Products Conference that runs from May 17-19 and includes presentations from PulteGroup (PHM), JELD-WEN Holding (JELD), DoorDash (DOOR), AZEK Company (AZEK), M.D.C. Holdings (MDC), KB Home (KBH), and Stanley Black & Decker (NYSE:SWK). Other conferences of note include the Needham Technology & Media Conference, the BofA 2022 Global Metals, Mining & Steel Conference, the RBC Global Healthcare Conference, the BMO Global Farm to Market Conference and the Wells Fargo Financial Services Investor Conference.

Block Investor Day preview: Block (SQ) will hold its 2022 Investor Day event on May 18 with appearances scheduled for CEO Jack Dorsey and CFO Amrita Ahuja. Bank of America said to expect a fresh deep-dive into both the Seller and Cash App ecosystems, with details on total address markets, product roadmap, and cohort economics, as well as integration progress and synergies related to the recent Afterpay acquisition. Also look for an update on the company's digital asset/crypto strategy with the recent sell-off in the background. "While we don’t necessarily anticipate formal and specific multi-year guidance to be issued, we think it is important for management to provide some form of a financial framework, to enable the Street to understand how SQ is thinking about trade-offs between growth and margins, as well as ROI on opex initiatives." previewed BofA.

Earnings preview: The retail sector takes center stage next week with big earnings reports due in from Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's (LOW), Kohl's (KSS) and Macy's (M). Morgan Stanley thinks the round of Q1 reports will be mostly solid even as the sector laps the stimulus period and faces headwinds with weather, geopolitical uncertainty, gas prices, wallet share reversion, rising interest rates, and recession concerns. In the home improvement, the firm thinks Home Depot's (HD) track record of execution in tougher environments sets it apart from Lowe's (LOW). Meanwhile, Evercore ISI issued a tactical underperform on Lowe's with Q1 results expected to disappoint. Lowe's is also said to be over-indexed to do-it-yourself projects and seen getting off to a late start to the spring selling season. UBS thinks Ross Stores (ROST) will deliver disappointing Q2 results and warns on FY22 guidance coming in below expectations. Analyst Jay Sole said the likely natural follow through from that development will be sell-side consensus EPS estimates coming down and market sentiment crumbling, which could take the stock's P/E lower. The firm said it likes Target (TGT) the best of all the names reporting next week. As for the biggest retailer of all, Walmart (WMT) landed higher estimates from Gordon Haskett with the Bentonville giant expected to smash U.S. same-store sales estimates. However, the same firm warned of a same-store sales and profit miss from Kohl's (KSS) due to a weaker macro backdrop and recent data showing softer foot traffic.

Annual meetings of note: AMD (AMD) will hold its annual meeting on May 17.

Barron's mentions: Citizens Financial Group (NYSE:CFG) is recommended, with the company expected to see higher profitability after going on an acquisition spree. Citizens is noted to trade at 1.3X tangible book value, which falls in line with the five-year average but lower than peers like Fifth Third Bancorp (FITB) and Huntington Bancshares (HBAN) at 1.6X. The publication also breaks down the massive collapse in Terra USD (LUNA-USD) and the implications for other stablecoins like Tether (USDT-USD) and USDC Coin (USDC-USD). The question that could attract attention from regulators is what is the potential contagion effect of another stablecoin problem if the problem impacts an exchange like Coinbase Global (NASDAQ:COIN) then feeds to PayPal Holdings (PYPL) and then feeds to a major bank.

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

This article was written by

SA Stocks To Watch profile picture
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.

Recommended For You

Comments (11)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.