Outlook  Shutterstock Earnings reports will dominate the action next week even as investors keep a watch for any developments with an infrastructure package or capital gains tax announcement. Conference calls from Tesla (NASDAQ:TSLA), Boeing (NYSE:BA) and AMD (NASDAQ:AMD) will be of high interest. Economic reports due in the week ahead include updates on durable goods orders, pending home sales and GDP.
| | Welcome to Wall Street Breakfast, our preview of stock market events for investors to watch during the upcoming week. You can also catch this article a day early by subscribing to the Stocks to Watch account for Saturday morning delivery. |
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| Outlook Shutterstock Earnings reports will dominate the action next week even as investors keep a watch for any developments with an infrastructure package or capital gains tax announcement. Conference calls from Tesla (NASDAQ:TSLA), Boeing (NYSE:BA) and AMD (NASDAQ:AMD) will be of high interest. Economic reports due in the week ahead include updates on durable goods orders, pending home sales and GDP.
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| Earnings Earnings season heats up in a big way with reports due in from Albertsons (NYSE:ACI), Tesla (TSLA) and NXP Semi (NASDAQ:NXPI) on April 26; BP (NYSE:BP), UPS (NYSE:UPS), General Electric (NYSE:GE), Alphabet (NASDAQ:GOOG), Microsoft (OTCPK:MFST) and Starbucks (NASDAQ:SBUX) on April 27; Humana (NYSE:HUM), Boeing (BA), Apple (NASDAQ:AAPL), Ford (NYSE:F), Qualcomm (NASDAQ:QCOM) and General Dynamics (NYSE:GD) on April 28; Comcast (NASDAQ:CMCSA), Merck (NYSE:MRK), Caterpillar (NYSE:CAT), Northrop Grumman (NYSE:NOC), Amazon (NASDAQ:AMZN), Nio (NYSE:NIO) and U.S. Steel (NYSE:X) on April 29; as well as Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and AbbVie (NYSE:ABBV) on April 30.
The latest vibe from Wall Street analysts is that Tesla (TSLA) has a good chance to top consensus estimates for Q1 revenue of $10.5B and EPS of $0.75 after factoring in the strong Q1 delivery numbers. "While Tesla has navigated a myriad of Chinese government PR issues, chip shortages, and a further spotlight on its auto pilot safety record (given the Texas crash) over the past month, the Street is now laser focused on gauging the annual delivery trajectory for 2021," previews analyst Dan Ives. The conference call set for April 26 at 4:30 p.m. takes on some added significance with the news flow working against Tesla over the last week.
Apple (AAPL) is seen generating revenue of $77B and EPS of $0.98 in Q1. Analysts are watching for indications that the company's strong services sales growth has continued in Q2 quarter and that the pandemic boost in demand for iPads and Macs has continued. Apple is also expected to increase its dividend payout and boost its buyback allowance. After Apple turns the page on Q1, investors will start looking to analyze how the iPhone 13 launch will factor in to the back half of the year.
Microsoft (NASDAQ:MSFT) is tipped by Wedbush Securities for another beat and raise quarter. "We strongly believe the tide is shifting in the cloud arms race as Microsoft should deliver a ~45% Azure growth number this quarter and is clearly taking market share vs. AWS based on our analysis. While we have seen the momentum of this backdrop in the last few quarters, we believe deal flow looks strong heading into the rest of FY21 and FY22 as we estimate that Microsoft in particular is still only ~35% through penetrating its unparalleled installed base on the cloud transition," updates analyst Dan Ives.
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| IPOs IPOs expected to start trading next week include FTC Solar (FTCI) on April 28 and both Endeavor Group (NYSE:EDR) and Fortegra Group (FRF) on April 29. IPO lockup periods are set to expire next week on Root (NASDAQ:ROOT), MediaAlpha (NYSE:MAX), Gatos Silver (NYSE:GATO), Biodesxi (NASDAQ:BDSX), Leslie's (NASDAQ:LESL), Allegro MicroSystems (NASDAQ:ALGM), Lufax Holding (NYSE:LU), Atea Pharmaceuticals (NASDAQ:AVIR), SQZ Biotechnologies (NYSE:SQZ) and Galecto (NASDAQ:GLTO). The quiet period expires on Frontier (NASDAQ:ULCC), Coursera (NYSE:COUR), Compass (NYSE:COMP), Karooooo (NASDAQ:KARO) and Smart Share (NASDAQ:EM). | |
| Dividends Projected dividend increases (quarterly): Expected dividend hikes for next week include Masco (NYSE:MAS) to $0.235 from $0.14, St Joe (NYSE:JOE) to $0.09 from $0.08, Tetra Tech (NYSE:TTI) $0.19 from $0.17, American Water (NYSE:AWK) to $0.60 from $0.55, Comfort Systems USA (NYSE:FIX) to $0.125 from $0.115, Ameriprise Financial (NYSE:AMP) to $1.11 from $1.04, Invesco (NYSE:IVZ) to $0.165 from $0.155, HP Enterprise (NYSE:HPE) to $0.1275 from $0.12 and Apple (AAPL) to $0.2175 from $0.205.
On the topic of dividends, UBS ran a deep screen for some dividend favorites. A list of 16 stocks was generated based off a filter of Buy-rated stocks with three-year dividend growth rate forecast at least at a high single digit rate, with a current dividend yield that beats the S&P's yield, sustainable payout ratios and sitting with more than 10% potential upside to price targets. On that list the fastest dividend growth was projected for Barrick (NYSE:GOLD), East West Bancorp (NASDAQ:EWBC), and Royalty Pharma (NASDAQ:RPRX) and the lowest payout ratios (suggesting the greatest ability to pay) were at Sealed Air (NYSE:SEE), Royalty Pharma (RPRX) and East West Bancorp (EWBC). The highest yielding names in the screen included Merck (MRK), American Electric Power (NASDAQ:AEP) and Sempra (NYSE:SRE). | |
| M&A A pre-hearing conference will by held by the New Mexico Public Regulation Commission in regard to the PNM Resources (NYSE:PNM)-Avangrid (NYSE:AGR) merger. The companies have already landed several different approvals include from FERC. CoreLogic (NYSE:CLGX) shareholders vote on the buyout offer from Stone Point on April 28. Cooper Tire & Rubber (NYSE:CTB) shareholders vote on the Goodyear Tire & Rubber (NASDAQ:GT) merger on April 30. FactSet Research (NYSE:FDS) trades with takeover rumors swirling around it. | |
| Events I-Mab (NASDAQ:IMAB) hosts its 2021 R&D Day on April 26. Executives from Facebook (NASDAQ:FB), Twitter (NYSE:TWTR) and YouTube (GOOG) testify in front of a Senate Judiciary hearing covering algorithmic amplification on April 27. Atlassian (NASDAQ:TEAM) Co-CEO and founder Mike Cannon-Brookes gives a talk at the company's Team 21 event on April 28 that it hopes will draw attention to the company's new innovations.
Wayfair (NYSE:W) holds its two-day deals event on April 28-29. The Way Day shopping event includes deals and promotions on best-selling items across the whole home including furnishings, decor, housewares, home improvement products, major appliances, outdoor and more. Shares of Wayfair are up 41% YTD and 232% over the last 52 weeks.
The NFL draft begins the evening of April 29 and is a bettable event in more states than ever as legislation continues to advance in more states. New Gatorade (NASDAQ:PEP) endorser Trevor Lawrence is expected to go the Jacksonville Jaguars as the number one overall pick. The draft follows a big week for sports betting/iGaming stocks like DraftKings (NASDAQ:DKNG) and Penn National Gaming after BetMGM's investor event pushed up expectations for the total addressable market.
GamesBeat Summit 2021: The event gathers videogame industry players (virtually) April 28-29 with a special focus on diversity, inclusion and mental health challenges, as part of its larger theme of what will keep gaming growing. Notable sessions will include Phil Spencer, executive VP of gaming at Microsoft (MSFT), who is joined by his team for "Team Xbox on Gaming for Everyone"; Activision Blizzard (NASDAQ:ATVI) CEO Bobby Kotick and AMD's (AMD) Frank Azor each talking about gaming's post-pandemic world; and representatives from Electronic Arts (NASDAQ:EA), Playtika (NASDAQ:PLTK), NetEase (NASDAQ:NTES), Tencent (OTCPK:TCEHY), Roblox (NYSE:RBLX) and Sony (NYSE:SONY).
Conferences rundown: Notable conferences running during the week include the Chardan Manufacturing Summit, H.C. Wainwright & Co. Cryptocurrency, Blockchain & FinTech Conference, Kempen Life Science Conference and B. Riley Neuroscience Conference.
Go Deeper: Check out Seeking Alpha's Catalyst Watch for a detailed list of events to watch | |
| Barron's mentions Food stocks catch the attention of the publication with more people heading back to the office, to schools and to restaurants. Hershey (NYSE:HSY), Mondelez International (NASDAQ:MDLZ), Conagra Brands (NYSE:CAG), J.M. Smucker (NYSE:SJM), Hostess Brands (NASDAQ:TWNK), Kraft Heinz (NASDAQ:KHC), General Mills (NYSE:GIS), Kellogg (NYSE:K) and Campbell Soup (NYSE:CPB) are called the leading food stocks with their lean valuations and secure dividends comparing nicely to other sectors. Perrigo (NYSE:PRGO) is tipped to see a turnaround. The company is seen moving past its legal risks and its valuation is seen rising as investors get more comfortable with the new growth profile. Meanwhile, Moderna (NASDAQ:MRNA) is called more than a one-hit wonder with strong sales seen for years.
Sources: EDGAR, Bloomberg, CNBC, The Verge, Renaissance Capital
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