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.
Interest rates are back in the spotlight with a Federal Reserve interest rate decision due out on March 20 at 2:00 p.m. and a Jerome Powell presser to follow. The CME FedWatch Tool is telling us that rates are very likely to be held steady by the Fed until the fall, when the probability for a hike increases to about 30%. At this meeting, the Fed could lower its projected pace of rate hikes and/or announce the end of the operation to unwind its balance sheet. European Union leaders meet for discussions likely to be dominated by Britain’s request to extend the Brexit timetable, while Prime Minister Theresa May is still trying to work on a deal in the U.K. On the economic front, PMI reports will come pouring from Asia, Europe and the U.S. on March 22 to give traders plenty to chew on. On the corporate side, Dow components Boeing (NYSE:BA), Disney (NYSE:DIS) and Nike (NYSE:NKE) will be stealing some headlines.
Notable earnings reports: Tilray (NASDAQ:TLRY), Lumber Liquidators (NYSE:LL) and Overstock.com (NASDAQ:OSTK) on March 18; FedEx (NYSE:FDX), Michaels Companies (NASDAQ:MIK) and DSW (NYSE:DSW) on March 19; Micron Technology (NASDAQ:MU) and General Mills (NYSE:GIS) on March 20; Nike (NKE), Carnival (NYSE:CCL) and Darden Restaurants (NYSE:DRI) on March 21; Tiffany (NYSE:TIF) and JinkoSolar (NYSE:JKS) on March 22. See Seeking Alpha’s Earnings Calendar for the complete list of earnings reporters.
IPO pricings: Up Fintech (TIGR) is expected to price its offering on March 19. In a notable deal for the apparel sector, Levi Strauss (LEVI) is expected to price its IPO on March 20. The iconic company is offering 36.7M shares in an expected range of $14 to $16. The timing could be good for the Levi Strauss IPO after American Eagle Outfitters (NYSE:AEO) and Abercrombie & Fitch (NYSE:ANF) both cited strong demand for denim products in their Q4 earnings reports. Also on the IPO calendar, Alight (ALIT) is seen pricing its IPO on March 21, while across the Pacific, luxury auto specialist Shanghai Dongzheng Automotive is due to price 533M shares in an expected range of HK$4.20 to HK$6.30.
IPO lockup expirations: Aptorum (NASDAQ:APM) and X Financial (NYSE:XYF) on March 18; Bank7 (NASDAQ:BSVN), Eventbrite (NYSE:EB) and Elanco Animal Health (NYSE:ELAN) on March 19; Farfetch (NYSE:FTCH), Y-mAbs Therapeutics (NASDAQ:YMAB) and Golden Bull (NASDAQ:DNJR) on March 20.
Projected dividend changes (quarterly): Raytheon (NYSE:RTN) to $0.95 from $0.8675, Cousins Properties (NYSE:CUZ) to $0.07 from $0.65, Fulton Financial (NASDAQ:FULT) to $0.13 from $0.12, International Banc (NASDAQ:IBOC) to $0.44 from $0.42, Williams-Sonoma (NYSE:WSM) to $0.45 from $0.43, Porsche (OTCPK:POAHY) to €1.65 from €1.76, Banco Santander (NYSE:SAN) interim dividend to €.07 from €0.065.
Boeing blowback: There is no question that Boeing (BA) will be back in the news as more work goes into determining what went wrong in two Boeing 737 Max crashes. Bank of America Merrill Lynch thinks the company will take three to six months to come up with a fix and have it certified. “We would expect Boeing to continue to produce the 737 at the current rate of 52 per month in order to minimize disruption in the supply chain. Boeing may have to carry inventory in its balance sheet of about $5.5B per quarter,” updates the firm. Airbus (OTCPK:EADSF), Southwest Airlines (NYSE:LUV) and Norwegian Air (OTCPK:NWARF) are just a few of the stocks showing volatility off of Boeing news.
Mega media: Disney’s (DIS) $71.3B acquisition of 21st Century Fox (NASDAQ:FOXA) assets is scheduled to close on March 20. The deal gives Disney control Fox’s film and TV studio, National Geographic, FX and a significant 30% stake in Hulu. The extra content will come in handy with Disney+ scheduled to launch later this year.
Catching up: WageWorks (NYSE:WAGE) is expected to post a majority of its delayed quarterly earnings reports next week. The company also has a conference call scheduled for March 18 at 5:00 p.m. ET to discuss financial results and its outlook. Last week, Wells Fargo lifted its rating on WageWorks to Outperform from Market Perform and assigned a price target of $45. WageWorks has rallied 27% over the last week in anticipation of the accounting cleanup.
M&A tidbits: The go shop period for the Ellie Mae (NYSE:ELLI) takeover by Thoma Bravo expires on March 18. The merger between Fifth Third (OTC:FTIB) and MB Financial (NASDAQ:MBFI) is expected to close on March 22. Activists are on the prowl with increased positions at Capital Senior Living (NYSE:CSU), Caesars Entertainment (NASDAQ:CZR), Hain Celestial (NASDAQ:HAIN), J. Alexander’s (NYSE:JAX), Cerecor (NASDAQ:CERC) and Destination XL Group (NASDAQ:DXLG).
Spotlight on Nike: Analysts expect Nike (NKE) to report revenue of $9.57B for FQ3 and EPS of $0.64. Count Morgan Stanley in the camp expecting strong results. “We expect a 3Q EPS beat, driven by a stronger top-line and gross margin,” wrote MS analysts in an earnings preview. Wedbush sees upside to guidance. “Nike is executing solid strategies and delivering innovative product to its digitally connected consumer, driving increasingly profitable growth while expanding the market,” notes the firm. Looking to the earnings conference call, interesting topics that may be discussed by Nike management include China demand trends, the e-commerce business and the impact (if any) of Zion Williamson’s high profile blowout of a PG3.
Spotlight on Nvidia: A big week is on tap for Nvidia (NASDAQ:NVDA) with the company presenting at the GPU Technology Conference on March 18 and hosting an investor day event on March 19. Citi expects to hear about Nvidia’s plans on integrating Mellanox and an update on long-term growth projections for data-center products. Nvidia closed at $169.81 on Friday vs. the 52-week trading range of $124.46 to $292.76.
D.C. matters: AT&T (NYSE:T) CEO Randall Stephenson is scheduled to speak at the Economic Club of Washington, D.C. on March 20.
Roth Conference: Presenting companies at the huge conference include Reed’s (NYSEMKT:REED), Alkaline Water (NASDAQ:WTER), VirTra (NASDAQ:VTSI), Willdan Group (NASDAQ:WLDN), Sensus Healthcare (NASDAQ:SRTS), Nemus Bioscience (OTCQB:NMUS), Cresco Labs (OTCQX:CRLBF), MedMen (OTCQB:MMNFF), Cyclacel (NASDAQ:CYCC), Energous Corporation (NASDAQ:WATT), Panhandle Oil & Gas (NYSE:PHX), RealNetworks (NASDAQ:RNWK), Agilysys (NASDAQ:AGYS), PDL BioPharma (NASDAQ:PDLI), Pola Power (NASDAQ:POLA), Century Casinos (NASDAQ:CNTY), Netlist (OTC:NLST), Clarus (NASDAQ:CLAR), Celsius Holdings (NASDAQ:CELH), CymaBay Therapeutics (NASDAQ:CBAY) and InMed Pharmaceuticals (OTCQX:IMLFF).
Containerboard data: Pulp & Paper Week is expected to publish March containerboard price estimates on March 22 in a development that could impact share prices for WestRock (NYSE:WRK), Packaging Corp of America (NYSE:PKG), International Paper (NYSE:IP), Greif (NYSE:GEF), Graphic Packaging Holding (PKG), Verso (NYSE:VRS), Domtar (NYSE:UFS), Cascades (OTCPK:CADNF) and Clearwater (NYSE:CLW).
Seaport Global Transports & Industrials Conference: Companies due to present at the event in Coral Gables, Florida include Covenant Transportation (NASDAQ:CVTI), Daseke (NASDAQ:DSKE), Kratos (NASDAQ:KTOS), Quaker Chemical (NYSE:KWR), UFPI (NASDAQ:UFPI), Quanex Building Products (NYSE:NX), Skyline Champion (NYSE:SKY), Watt Water Technologies (NYSE:WTS) and Harsco (NYSE:HSC).
Box office: Disney’s (DIS) Captain Marvel is expected to dominate again by bringing in $69M across 4.3K theaters. The Marvel film has already topped $550M at the global box office. Paramount’s (NASDAQ:VIA) Wonder Park is forecast to finish second in its debut weekend with a haul of $13M.
Barron’s mentions: The publication advises that Boeing (BA) shareholders stay calm. Despite the estimated $5B cost of the 737 Max grounding, the company carries little debt and is expected to generate $15B in free cash this year, gradually rising to $21B four years from now, notes Jack Hough. Legalized marijuana in New Jersey is seen as a potential catalyst for iAnthus (OTCQX:ITHUF), Curaleaf (OTCPK:CURLF), Acreage Holdings (OTCQX:ACRGF), Green Thumb Industries (OTCQX:GTBIF) and Harvest Health & Recreation (OTCQX:HRVSF). The pros and cons of holding Square (NYSE:SQ) are sized up, while First Solar (NASDAQ:FSLR) is seen as solar sector winner. Steel stocks are called attractive on a valuation look. Nucor (NYSE:NUE), Steel Dynamics (NASDAQ:STLD), U.S. Steel (NYSE:X) and Commercial Metals (NYSE:CMC) all trade with single-digit PE ratios.
Sources: CNBC, Nasdaq, EDGAR, Reuters, Box Office Mojo, Bloomberg
Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.