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| | Welcome to the Sunday edition of Wall Street Breakfast, which previews events for investors to watch during the upcoming week. If you want to receive this a day earlier, follow Stocks to Watch and select the option to receive email notifications. Outlook  Investors head back for the second trading week of the year with some indications that the valuation reset away from high-growth, high-PE stocks could continue. The first two really big investor conferences of the year are also on the schedule with the ICR Conference in the retail sector and the JPMorgan Healthcare Conference expected to lead to a flurry of guidance and business updates. On the economic calendar, updates on wholesale inventories, consumer prices and producer prices are the headliners. Meanwhile, Albertsons (NYSE: ACI) and Delta Air Lines (NYSE: DAL) head into the earnings confessional with reports that could rattle their respective sectors. At the end of the week, the Q4 earnings season kicks off in earnest with a wave of highly-anticipated reports from big banks. | | Earnings Earnings spotlight: Monday, January 10 Tilray (NASDAQ:TLRY)
Earnings spotlight: Tuesday, January 11 Albertsons Companies (ACI).
Earnings spotlight: Wednesday, January 12 Jefferies (NYSE:JEF), KB Home (NYSE:KBH).
Earnings spotlight: Thursday, January 13 Delta Air Lines (DAL).
Earnings spotlight: Friday, January 14 JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), BlackRock (NYSE:BLK) and Citigroup (NYSE:C). | | Featured  Join Value Investor's Edge to unlock J Mintzmyer's Top 20 Buy List, model portfolios with different risk levels, Q&A with Executives and Insiders and much more!
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Subscribe now before the price goes up » | | IPOs IPO watch: Quiet periods are due to expire on January 10 Bionomics Limited (NASDAQ: BNOX), Genenta Science S.p.A. (NASDAQ: GNTA), Immix Biopharma (NASDAQ: IMMX), Samsara (NYSE: IOT), Sidus Space (NASDAQ: SIDU) and Fresh Vine Wine (NYSE: VINE). Watch F45 Training Holdings (NYSE: FXLV) and Phillips Edison & Company (NASDAQ: PECO) on January 11 with the IPO lockup period expiring. JWG and TPG ( TPG) are expected to start trading on January 13. | | Dividends Projected dividend increases: Dividend increases forecast to be announced next week include Shutterstock (NYSE:SSTK) to $0.25 from $0.21, Signet (NYSE:SIG) to $0.20 from $0.18, Jacobs (NYSE:J) to $0.23 from $0.21, Apogee Enterprises (NASDAQ:APOG) to $0.215 from $0.200, Realty Income (NYSE:O) to $0.247 from $0.2464. | | Events ICR preview: One of the biggest retail events of the year takes place next week in Florida with the annual ICR Conference. The event is known for seeing a flurry of guidance updates as companies set their outlook for the year, although some analysts think there will be less action this year around than normal due to macro uncertainty. UBS expects solid updates in general, with channel checks suggesting the shopping environment experienced a surprising improvement during the last two weeks of December. The firm points to Crocs (NASDAQ:CROX) as a stock that could see the biggest jump off ICR news. That would mark a trend for CROX after shares jumped more than 10% last year after its ICR presentation. Lululemon (NASDAQ:LULU) and Boot Barn (NYSE:BOOT) are also expected to surprise to the upside with their guidance updates. Other retailers to watch for presentations and press releases include American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch (NYSE:ANF), Boot Barn (BOOT), Crocs (CROX), Lululemon (LULU), On Holding AG (NYSE:ONON) and Urban Outfitters (NASDAQ:URBN).
Healthcare in the spotlight: The JPMorgan Healthcare Conference is expected to set the stage for the biotech sector in 2022. Healthcare stocks have a five-year trend of outperforming the S&P 500 Index during the high-profile conference with a high numbers of trial data and guidance updates the standard. Some of the companies that are expected to provide updates are BioMarin Pharmaceutical (NASDAQ:BMRN) on its pivotal 2-year Roctavian Phase 3 data, Seagen (NASDAQ:SGEN) on initial Phase 1 data for SEA-CD40 in pancreatic cancer and Gilead Sciences (NASDAQ:GILD) on Phase 3 TROPiCS-02 data for Trodelvy in HR+/HER2- breast cancer. Other companies that have historically preannounced guidance or data at the conference include Regeneron Pharmaceuticals (NASDAQ:REGN), Sarepta Therapeutics (NASDAQ:SRPT), PTC Therapeutics (NASDAQ:PTCT), Ironwood Pharmaceuticals (NASDAQ:IRWD) and Clovis Oncology (NASDAQ:CLVS). | | Analysis Albertsons earnings preview Evercore ISI fired off a positive tactical trading call on Albersons Companies (ACI) ahead of the grocery store operator's earnings report next week. The firm sees the potential for ACI shares to reach $32 based on a likely earnings beat and a constructive F4Q outlook. looking ahead, Evercore sees stable EBITDA for Albertsons due to enhanced gas profitability, accelerated realization of central purchasing initiative, ongoing pharmacy benefits from vaccinations, favorable COVID expense comparisons and rational industry pricing dynamics. The firm also thinks rising interest rates could drive outperformance due to ACI's defensive characteristics and relative S&P valuation discount. Albertsons has topped sales estimates in six straight quarters.
Pandemic recovery plays: Investors wanting to look ahead to the post-COVID period have a new list from Credit Suisse of leisure sector recovery picks to consider. The firm's collection of highest conviction ideas includes MGM Resorts International (NYSE:MGM), Hilton Grand Vacations (NYSE:HGV), International Game Technology (NYSE:IGT) and SeaWorld International (NYSE:SEAS) as names that offer asymmetric risk-reward and should outperform over the next 12 months. MGM Resorts makes the list based on accelerating trends in Vegas, a more simplified operating structure that should aid valuation and an attractive capital structure. Meanwhile, Hilton Grand Vacations is called the most underfollowed name in Credit Suisse's coverage. SeaWorld is seen benefiting from operating leverage, drive-to demand and unappreciated pricing power this year and International Game Technology is the top overall pick. | | Outlook Corporate events: Capstar Special Purpose Acquisition (NYSE: CPSRU) shareholders meet on January 11 to vote on the business combination with weight loss maker Gelesis. The SPAC deal is anticipated to give Gelesis an equity value of around $1.3B. Also on January 11, Dell Technologies (NYSE: DELL) CEO Michael Dell is participating in a virtual fireside chat hosted by Bank of American. At the end of the week, Monster Beverage Corporation (NASDAQ: MNST) holds a virtual investor meeting to provide an update on the company's business and operations. Monster is expected to post a positive outlook on 2022. Beverage stocks in general have fallen back in favor over the last few weeks as investors have gone through a valuation reset. Monster Beverage is the leading gainer over the last month with a 12% gain vs +11% for Coca-Cola (NYSE: KO) and +6% for Keurig Dr Pepper (NASDAQ: KDP). In addition to those players - Vita Coco (NASDAQ: COCO), Coca-Cola FEMSA (NYSE: KOF), Coca-Cola Europacific Partners (NASDAQ: CCEP), PepsiCo (NASDAQ: PEP), Primo Water ( PRMW) are all higher over the last month. Another item to track all week will be the HSR deadline expiration for the deal between AMD (NASDAQ: AMD) and Xilinx (NASDAQ: XLNX). The merger is awaiting approval from Chinese antitrust authorities. If it is not approved by January 11, a new HSR filing will have to be made in a development that could give shares a jolt. | | Stocks Stock split: The 5-for-1 stock split for AeroCentury (NYSE:ACY) becomes effective on January 7.
Barron's mentions: MGM Resorts (MGM) is singled out as a top casino stock. The publication notes that MGM is not only well-positioned to capitalize on a strong leisure recovery in Las Vegas, but it also has a promising digital business and plenty of cash for deals to help boost growth. In the electric vehicle sector, Proterra (NASDAQ:PTRA) is seen as a standout. The electric bus maker already has products and sales, which puts it ahead of many EV companies and profitability is expected to not be far off. The cover story this week covers why investors should play the commodities boom with rising inflation, trouble in China, extreme weather trends and the move toward renewable energy all in play. Even the boom in the number of vegetarians is anticipated to increase demand for pulses, soybeans and alternative protein sources like nuts and avocados. Meanwhile, low-carbon fuel standards in western states is seen causing greater demand for soybeans and sugar cane.
Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital
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